Happy Birthday, Medicare!

Medicare is 40 years old on July 30, 2005.

I share the following message from Jason Willett, Chairman of the Arkansas Democratic Party.

ON MEDICARE’S 40TH ANNIVERSARY, LET US RECOMMIT TO QUALITY HEALTH CARE FOR SENIORS AND PEOPLE WITH DISABILITIES

On July 30, we celebrate the 40th anniversary of Medicare, which was passed by a heavily Democratic Congress and signed into law by President Lyndon B. Johnson.

Creating Medicare was one of the proudest achievements of the Democratic Party. Medicare has transformed what it means to be old in this country. And Medicare has transformed what it means to live with disabilities in this country.

Too many people have forgotten what life was like in the United States before Medicare existed. In 1964, only 51 percent of Americans over 65 had health care coverage – whereas today, because of Medicare, coverage is virtually universal. In addition, the creation of Medicare has contributed to the poverty rate among seniors dropping dramatically. Nearly 30 percent of seniors lived below the poverty line in 1966 – and yet today that number has dropped to 10 percent. Furthermore, Medicare has contributed to the life expectancy of Americans increasing significantly.

Medicare remains a tremendous success. Today, Medicare provides comprehensive health insurance for nearly 42 million Americans - 35 million senior citizens and six million people under age 65 with permanent disabilities.

Medicare serves a vulnerable population with complex health care needs: 71 percent of beneficiaries have two or more chronic conditions, 29 percent are in fair to poor health, and 23 percent have cognitive impairments. Simultaneously, most Medicare beneficiaries live with modest incomes and assets – a majority have incomes below 200 percent of the federal poverty level.

Medicare’s existence has also eased spending by adult children to support the health care needs of their elderly parents, enabling countless families to send their children to college, purchase homes and make other investments.

Compared to private insurance, Medicare is a remarkably efficient program. Medicare administrative costs average less than two percent of expenditures compared to up to 25 percent for private insurers. Furthermore, Medicare has kept its average cost increases below those of the private sector. In addition, Medicare provider standards, such as those for hospital certification and nursing home quality, and its support of graduate medical education, have greatly improved the quality and safety of health care for all Americans.

Medicare is a program that works. It has provided near universal coverage for our nation’s seniors and done so in an efficient manner. It is a program we should be building upon – not tearing down. As we celebrate its 40th anniversary, Democrats reiterate our commitment to preserving and strengthening the Medicare program. We will fight any attempts to slash Medicare benefits and will work to help provide our nation's seniors with access to affordable prescription drugs.

Sincerely,

Jason Willett, Chairman