July 4^th, 1776. The ‘birth’ of our nation.

On the 1^st of July in 1966, Medicare was ‘born.’ Harry and Bess Truman were the first two enrollees. (That’ll be on Jeopardy.)

19 million Americans age 65 and older signed up for Medicare Part A & B that year. Today, there are over 60 million people enrolled.

What does Medicare cost? The budget for 1966 was $10 billion. Today it is $720 billion. Projections are that it will account for 18% of all federal spending by the year 2028.

Interesting; $526 per enrolled beneficiary in 1966 and $12,000 today! (By comparison, a new home in ‘66 cost $23,300; a stamp, $.05; gas, $.32/gal. and eggs, $.60/doz.)

Even with those increases, Medicare still only covers about 65% of health care spending for people age 65 and older; i.e., $18,424 per person per year (source: Medicare current beneficiary survey).

That’s why we have Medigap clients. Lots of ‘em.

Finally, how is Medicare funded? General revenues account for 43%, payroll taxes 36% and, beneficiary premiums 15%. Does that add up to 100%? Not when Uncle Sam does the math!

I hope you had a healthy and happy Holiday.