Back in April we shared with you some facts concerning insurance history during the Civil War. Today we thought it would be interesting to share a few tidbits about Medicare History.
The subject of a National Health Care program was first discussed by Teddy Roosevelt in the early 1900’s when he was running mate to William McKinley. Those efforts were thwarted and the subject was not reintroduced with enthusiasm until 1945 when President Truman was in office. As with former efforts, the proposals for implementing National Insurance protection for all Americans was shot down again. Obstructed by the American Medical Association (AMA), it took another 20 years for Congress to get on board with a national plan, this time geared to people 65 and older with benefits available to those under age 65 suffering from certain disabilities.
During his term as President, John F Kennedy showed his whole-hearted support of a national insurance program. Unfortunately, he was unable to sign the bill into law. However, after Lyndon Johnson took office, he did sign into effect, the bill approving Medicare.
Medicare is funded mainly by FICA payroll taxes under the Federal Insurance Contributions Act. Employers withhold 3 separate taxes from employee wages.
#1 – Social Security Tax 6.2%
#2 – Medicare Tax 1.45 %
#3 – Additional Tax of 0.9% for those whose annual income is above $200,000
Both employer and employee pay these taxes into the system.
Natural born American citizens and those who’ve been a legal resident for 5 years or more are eligible to receive Medicare upon reaching age 65 or if disabled for 24 months. Some restrictions may apply based on individual circumstances.
For more information on the History of Medicare, check out the links below.
If you have questions regarding Medicare, the best place to get advice is the local Social Security office. However, we’d be happy to help if we can. Give one of our licensed agents a call.
Until next time take care and remember…. only when we understand our past, can we hope to improve upon our future.
Tommy Curtis and Staff
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