Medicare was started in 1965 under the guidance of President Johnson and Congress created Medicare under the Title XVII of the Social Security Act for people over 65 who found it not possible to get private health care. Just like the New Deal, Medicare also created entitlements. Medicare made entrance into health care as a universal right for all Americans once they became 65 years of age. Because of Medicare, it helped improve the health and longevity of Americans who were 65 years or older. But, Medicare was created during an era. Because of the financial worry everyone had was that an illness will put someone in the hospital and generate large amounts of bills. This period was before the widespread use of prescription medication to defect illness. The Medicare Program had a simple design. As years passed Medicare did major changes. In 1983 Medicare went under its first major revamp, and the reason why is because that is when the DRGs entered the medical lexicon. 1984 hospitals costs were determined prospectively on the base of a patient’s diagnosis rather than on daily charges. Medicare provided health insurance for 48 million Americans in 2010. In …show more content…
For every 2 dollars billed from a doctor’s office, hospital, chiropractors, a dollar of that is fraud. Hospitals, doctor’s offices, skillfully unpacked the diagnoses to make the most money for each patient treated. But, DRGs did have a effect on hospitals that was noticeable to the employee’s and facility, patient length of stay was decreased, the longer the patient stay, the more it cost the hospital and then it was paid on a fixed rate and Medicare used a resource-based relative value scale, which base the physician payments. Not only is there Medicare fraud from medical workers and facilities, it also comes from the patients as well. The over use of treatments, being on disability and nothing is wrong with the patients. That is why Medicare cost is going