Medicare and Medicaid 49th Anniversary, July 30th

as shared by...

By: Marilyn Tavenner, Administrator, Centers for Medicare & Medicaid Services | July 30, 2014

President Lyndon Johnson signs the Medicare Bill. President Harry S. Truman is seated next to him. Others looking on include Lady Bird Johnson, Vice President Hubert Humphrey, and Bess Truman. July 30, 1965. (Photo courtesy of Lyndon B. Johnson Presidential Library, U.S. National Archives)

Today marks the 49^th anniversary of the signing of Medicare and Medicaid into law.  More than 52 million people are now covered by Medicare and more than 60 million people by Medicaid.  These programs have improved the length as well as the quality of life for countless Americans over the years, providing health and economic security to the most vulnerable in our nation.

And thanks to hard work, Medicare is stronger today than it was when the President took office.  According to the Medicare Trustees report released this past Monday, thanks in large part to the Affordable Care Act, we’ve extended the life of the fund through 2030, four more years than last year’s projection. Just a few years ago, the Medicare Trust Fund was projected to run out of money by 2017.  In addition, a new report has found that Medicare spending per beneficiary is growing at one-third of the rate from 2000-2008.

Medicare is also more affordable for beneficiaries today thanks to the Affordable Care Act.  Since its enactment, out-of-pocket savings on medications for people with Medicare prescription drug coverage continues to grow.  More than 8.2 million seniors and people with disabilities with Medicare have saved over $11.5 billion on prescription drugs since 2010 as a result of discounts to mitigate the donut hole coverage gap and rebates in 2010, for an average of $1,407.  These figures are higher than last year when over 6.6 million seniors and people with disabilities had saved over $7 billion on prescription drugs, averaging $1,061 per beneficiary in donut hole discounts.

Medicaid has been strengthened as well.  The Affordable Care Act provides states with new opportunities to expand their Medicaid programs to increase access to affordable coverage. To date, 26 states and D.C. have expanded their Medicaid programs.  The Council of Economic Advisers recently reported that in states that have expanded Medicaid, 5.2 million low-income adults have gained access to affordable health care through Medicaid.

Under the Affordable Care Act, coverage for newly eligible individuals is fully paid for during the first three years by the federal government, and federal funding will not fall below 90 percent afterward. Increasing access to Medicaid coverage not only provides a lifeline to low-income and disabled Americans: it reduces the amount of uncompensated care provided by hospitals and strengthens local economies.

The Affordable Care Act also made strides in improving and integrating the benefits of the 10 million Americans with both Medicare and Medicaid.  As a result of the Affordable Care Act, the federal government and states have launched initiatives throughout the country to better coordinate care and provide beneficiaries with more seamless access to their Medicare and Medicaid benefits.

It’s also worth noting that the Congressional Budget Office yesterday reported that projected Medicare and Medicaid spending over the 10 years from 2011 – 2020 is $1.1 trillion lower today than it was in 2010.  That represents a $715 billion decline for Medicare and a $395 billion decline for Medicaid over the same time period, and a 12% reduction for these programs in 2020 alone.

More than ever, we are committed to making health coverage more affordable for more families and individuals, while holding down costs and improving the quality of care.  Working together we can ensure our parents, grandparents, children, and our most vulnerable neighbors have access to the care they deserve. 

Happy 49th Anniversary Medicare and Medicaid.

http://www.hhs.gov/healthcare/facts/blog/2014/07/medicare-and-medicaid-forty-nine-years-and-stronger.html
Content last reviewed on July 30, 2014

FOR the Centers for Medicare & Medicaid Services, visit: http://cms.hhs.gov/