ABSTRACT
This chapter provides an overview of medicare and the impact of the 2010 health care reform legislation, including new programs to improve quality and care, and mechanisms to slow the growth of Medicare spending, which will be impacted by demographic trends. Before Medicare, half of the nation’s older adults lacked health care coverage, and millions more had inadequate coverage. Together, Medicare and Medicaid have enabled millions of adults and children to access health care and have contributed significantly to the social and economic welfare of individuals and the nation as a whole. Medicare-managed care grew slowly, however; by 1993, only 5 percent of the Medicare population had joined managed-care organizations. Medicare Advantage plans essentially provide all Medicare-covered benefits, but are required to pass along savings to beneficiaries in the form of lower premiums and copayments, additional benefits, or contributions to a reserve fund.
