On July 30, 1965, President Lyndon B. Johnson signed landmark legislation that created Medicare and Medicaid, two programs that have transformed health care in America. At his side was former President Harry Truman, who long championed national health insurance.
This moment marked the beginning of a new era of accessible, affordable health coverage for millions of Americans.
Understanding Medicare and Medicaid
Medicare is a federal health insurance program primarily for people age 65 and older, as well as those with certain disabilities or kidney disease.
Medicaid, on the other hand, provides health coverage for individuals and families with low incomes. Together, these programs form the foundation of the nation’s health care safety net, protecting people at every stage of life.
The Origins of Medicare
When first introduced, Medicare provided coverage to nearly all Americans age 65 and older who received Social Security or railroad retirement benefits. “Original Medicare” included Part A (Hospital Insurance) and Part B (Medical Insurance).
These two parts offered essential protection for hospital stays, medical services, and preventive care, ensuring older Americans could access health care without facing financial ruin.
Expanding Coverage in the 1970s
As the needs of the American public grew, so did Medicare. In 1972, the program expanded to include people receiving Social Security disability benefits for at least 24 months and individuals with End-Stage Renal Disease (ESRD) who require dialysis or a kidney transplant.
These changes helped ensure that those facing serious health challenges could receive vital medical care.
Prescription Drug Coverage Added in 2003
The most significant change in Medicare came in 2003 with the Medicare Prescription Drug Improvement and Modernization Act (MMA). This law created Part D, an optional prescription drug benefit available through private plans.
For the first time, millions of Medicare beneficiaries could access affordable prescription medications through a nationwide program.
Helping Those with Limited Income
The 2003 legislation also established the Extra Help program to assist people with limited income and resources in paying for prescription drugs. This program offers subsidies that reduce or eliminate premiums, deductibles, and copayments.
The lower a beneficiary’s income and assets, the greater the financial assistance they receive through Extra Help.
New Improvements for 2024
As of January 2024, new legislation has expanded the Extra Help program to reach more people. The law eliminates partial subsidies, raises income and resource limits, and increases overall savings for participants.
This means more Medicare beneficiaries can now afford their medications without worrying about high out-of-pocket costs.
What Beneficiaries Pay with Extra Help
Those who qualify for Extra Help now enjoy significant savings on prescription costs. Beneficiaries pay $0 in premiums, $0 in deductibles, and no more than $4.50 for generic drugs or $11.20 for brand-name medications.
Once their total drug costs reach $8,000 in a year, they pay nothing for covered prescriptions for the rest of that year.
How to Apply for Extra Help
Most people must apply for Extra Help, although some qualify automatically—such as individuals who receive Medicaid or Supplemental Security Income (SSI). To apply, you must live in the United States and have income and resources below certain limits, which may change each year.
The easiest way to apply is through Social Security’s online application at ssa.gov/extrahelp.
Learning More About Medicare
For those seeking additional information, Social Security provides a range of resources to help you understand and manage your Medicare benefits.
You can read the official Medicare publication or visit Medicare.gov for details on coverage options, enrollment, and the latest updates to the program. These resources ensure beneficiaries have the information needed to make informed choices.
Sharing Information and Support
Millions of Americans rely on Medicare and Medicaid every day for essential health services. By sharing this information with family, friends, and community members, you can help others access the care they deserve.
Understanding these programs and their benefits ensures that people can make the most of the resources available to them.
Nearly Six Decades of Service
For 59 years, Medicare and Medicaid have stood as two of the most successful social programs in U.S. history.
They continue to evolve to meet the needs of today’s population, providing affordable health care coverage and financial protection for older adults, people with disabilities, and low-income families. Their legacy is one of compassion, equity, and commitment to public health.
FAQs
What are Medicare and Medicaid?
Medicare is a federal health insurance program for people age 65 and older, and for those with certain disabilities or kidney disease. Medicaid provides health coverage for individuals and families with low incomes. Together, they help millions of Americans access essential health care services.
When were Medicare and Medicaid created?
President Lyndon B. Johnson signed the legislation creating Medicare and Medicaid on July 30, 1965. Former President Harry Truman, who advocated for national health insurance, attended the historic signing ceremony in Independence, Missouri.
What are the main parts of Medicare?
Original Medicare includes Part A (Hospital Insurance) and Part B (Medical Insurance). In 2003, Medicare was expanded to include Part D, which offers prescription drug coverage through private plans.
What is the Extra Help program?
The Extra Help program assists people with limited income and resources in paying for Medicare prescription drug costs. It helps cover premiums, deductibles, and copayments. As of 2024, more beneficiaries qualify for full Extra Help benefits due to higher income and resource limits.
How can I apply for Extra Help with Medicare drug costs?
You can apply for Extra Help online through the Social Security Administration’s website. Some people automatically qualify, including those who receive Medicaid or Supplemental Security Income (SSI). Visit SSA.gov/extrahelp for eligibility details and the online application.
Where can I learn more about Medicare and Medicaid?
For more information about Medicare, visit Medicare.gov. To learn about Medicaid eligibility and coverage, visit Medicaid.gov. You can also explore helpful publications and online tools at SSA.gov.
