Happy 50th Birthday Medicare and Medicaid!

This month, Medicare and Medicaid celebrate the big 5-0 on July 30. On that date in 1965, President Lyndon B. Johnson signed legislation establishing those federal health insurance programs. The anniversary has caused many to look back at the founding of the programs as well as the challenges ahead. "Today, Medicare and Medicaid are creating a health care system that is better, smarter, and healthier – setting standards for how care is delivered. As we take a moment to reflect on the past five decades, we must also look to the future and explore ways to strengthen and improve health care for future generations," said Andy Slavitt, acting administrator of the Centers for Medicare and Medicaid Services, in a statement.

Various organizations have highlighted the auspicious occasion, establishing websites commemorating the programs' history, publishing commentary, holding events recognizing the milestone, and promoting continuation and expansion of the federal benefits. For example, the Brookings Institution and USC Schaeffer Center issued a series of five Working Papers in June commenting on Medicare and future reforms, changes in Medicare spending and beneficiary demographics, trends relevant to the aging population, market competition, and alternative payment models. The Working Papers coincided with a June conference hosted by USC Schaeffer and Brookings titled "Strengthening Medicare for 2030."

The New England Journal of Medicine published a two-part series earlier this year anticipating the 50th anniversary by looking back at the history of the Medicare program and discussing its future. The first part of that series notes that Medicare actually arose out of efforts to provide universal health insurance, which met with political resistance and were scaled back to coverage for those over 65. The second part of the series focuses on the challenges facing Medicare—including increased spending; coverage gaps; and fragmentation of Medicare with parts A, B, and D and Medicare Advantage—and potential solutions such as value-based purchasing, blended and bundled payment methodologies, global payments, accountable care organizations, and additional reforms.

The Centers for Medicare and Medicaid Services report that there are currently 55 million Americans benefitting from Medicare and that "in any given month" over 70 million benefit from Medicaid. The Official U.S. Government site for Medicare, www.Medicare.gov, devotes a page to the anniversary, is collecting stories from the public about the impact of these programs on individuals and families, and a press release promises regional and national events in late July to commemorate the event.

Pennsylvania's medical associations released a series of comments from various leaders in the state's health care industry on the impact of Medicare, including the following by Karen Rizzo, M.D., president of the Pennsylvania Medical Society, which aptly sums up many of the comments made about Medicare in honor of its 50th anniversary: "Medicare may not be perfect, but it does a good job of helping millions of older Americans access the care they need. Before Medicare, the financial burden of health care was significant for many of our elderly. They sometimes chose to go without care as they didn't want the costs to create a hardship for their families. Medicare gave them and their families peace of mind, and today continues to play a vital role in the health of those who qualify."

Takeaway: Medicare and Medicaid celebrate 50 years of health insurance coverage as legislators and advocates discuss ways to ensure its survival for decades to come.