History of Medicare Part D
Medicare Part D is a voluntary insurance program enacted in 2003 to provide prescription drug coverage for millions of Americans aged 65 and older who qualify for Medicare. The drug benefit became effective on January 1, 2006.
Background
When Medicare was first enacted in 1965, it did not provide prescription drug coverage. In 2002, a Congressional conference committee noted that 25 percent of seniors had no insurance to cover drugs. Congress narrowly approved the bill authorizing Part D and President George W. Bush signed it into law in 2003.
Aftermath
News reports indicated that many seniors were confused by how the Part D benefits were designed, while others were apprehensive about losing their employee-sponsored insurance. There were also reports of computer glitches and pharmacies overcharging.
Consumer Satisfaction
A 2007 study of Part D recipients by the American Association of Retired Persons found 80 percent were satisfied with their choice, and more than half saved on their prescriptions after enrolling.
Criticisms
Consumer advocates such as Families USA criticized the law because it did not allow the federal government to negotiate the prices of drugs.
Participation
According to the U.S. Department of Health and Human Services, 28.8 million people were enrolled in Medicare Part D as of October 1, 2009.
Tags: Medicare Part, drug coverage, History Medicare, History Medicare Part, prescription drug, prescription drug coverage
