Medicare Legislative Change

The Medicare and Medicaid programs were signed into law on July 30, 1965. President LBJ is pictured at the signing ceremony in Independence. The most significant legislative change to Medicare--called the Medicare Modernization Act or MMA--was signed into law by another George W. Bush, on December 8, 2003. This historic legislation adds an outpatient prescription drug benefit to Medicare and makes many other important changes.
Since 1965, a number of changes have been made to CMS programs. A more detailed listing of those changes is at CMS milestones. Moreover, the agencies charged with implementing the programs have changed as well.
Medicare is typically used by people who are at least 65 years old. In 1972, Medicare eligibility was also extended to individuals under age 65 with long-term disabilities and to individuals with end-stage renal disease (ESRD). Then in 1985 The Emergency Medical Treatment and Labor Act (EMTALA) required hospitals participating in Medicare that operated active emergency rooms to provide appropriate medical screenings and stabilizing treatments.
Demographic changes contribute to this health care fiscal challenge. America's population is aging, and the aged use greater health care services. Not only are the baby boomers aging, but they are living longer, which

For the past 40 years health care spending has consistently grown faster than the economy. The reasons for the higher levels of spending on health care in America are not totally understood but include higher costs of treatment in the U.S. health care system, including rates of reimbursement for doctors and other health care providers; higher prices for hospital stays and prescription drugs; increased use of medical technology; a lack of reliable comparative information on medical outcomes, quality of care, and cost; and increased prevalence of risk factors such as obesity that can lead to expensive chronic