Medicare
When did Medicare Start?
Medicare’s roots started back in 1965 when Lyndon B. Johnson signed Medicare and Medicaid into law. At the time, only Medicare Part A and B were offered (Original Medicare). The goal of Original Medicare was to provide insurance for those at retirement age as they lose their employer plan benefits. Most employer health care plans only covered hospital insurance at that time so most Americans choose to go with just Part A (Hospital) while Part B (Outpatient) was not seen as important.
Back when Original Medicare was first implemented, Part A had a measly $40 deductible and Part B had a $3 monthly premium. The Part A deductible is now 1,566 as of 2022. A minimum wage of $1.25 at the time could easily afford the Part B premium while the premium is now 170.10. Not surprising but very worrisome, the cost of healthcare has increased past the rate of inflation as a high rate. This fact alone along with increasing costs universally, stresses the importance of retirement planning.
Picture from Lyndon B. Johnson Library / National Archives