Medicare has changed a lot over the years. With all the modifications, it can sometimes be difficult to remember what is covered, who is eligible, when you can enroll, and how much everything costs. That’s why Physicians Mutual® created this guide. We want to help you understand Medicare and the options available to you.

Medicare was enacted in 1965 to provide government administered health insurance to help seniors with the costs of hospital services (Part A) and medically necessary physician services (Part B). Over the years, Congress added some new benefits, rules and regulations to improve the program. One major change was the addition of Medicare Part C — a managed care-style coverage (like HMOs) administered by companies from the private sector but funded by the government.

In December 2003, Congress enacted a piece of legislation called The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), which gave the Medicare program its latest update by adding:

Preventive Benefits Covered Under Medicare Part B

• "Welcome to Medicare" physical exam. A one-time initial wellness physical exam within six (6) months of the day you first enroll in Medicare Part B.
• Screening blood tests for early detection of cardiovascular (heart) diseases.
• Diabetes screening tests for people with Medicare at risk of getting diabetes.

Indexing of Medicare Part B Deductible
MMA changed the annual Part B deductible for the first time in 14 years. The Part B deductible will be indexed to inflation from now on. This means the Part B deductible can change annually.

Prescription Drug Benefits (Medicare Part D)
Effective January 1, 2006, all people who are eligible for Medicare have the option to enroll in plans that cover outpatient prescription drugs.



Sources Referenced

• www.medicare.gov
• Medicare’s Medicare & You
• Centers for Medicare & Medicaid Services
• Senator Bob Dole’s Ten Things You Need To Know About Medicare’s New Prescription Drug Coverage
• Walgreens’ Introduction to Part D: Medicare’s New Prescription Drug Coverage
• Kaiser Family Foundation’s Talking About Medicare: Your Guide to Understanding the Program