Final answer:
In 2015, Medicare had a prescription drug coverage scheme that paid 75 percent of costs up to $2,250 after premiums and deductibles. The Medicare Prescription Drug and Modernization Act of 2003 introduced this benefit, influenced by political pressure and advocacy groups like the AARP. The Part D program is financed through premiums and general revenues.
Step-by-step explanation:
In 2015, Medicare assistance for prescription medication costs worked in a way where it was not continuous beyond a certain spending point. Initially, after paying an annual premium and deductible, Medicare would cover 75 percent of a beneficiary's prescription drug costs up to a specific limit of $2,250. This framework was a part of the broader effort to close the 'gaps' in Medicare coverage, especially for the elderly and disabled who often require multiple prescription drugs. The need for such coverage was recognized and led to the enactment of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which introduced assistance programs including a prescription drug benefit and a discount card program.
Medicare has historically been divided into parts, including Hospital Insurance and Supplementary Medical Insurance, with the latter covering the prescription drug benefit, known as Part D. Part D is financed mainly through beneficiary premiums and general revenues. The instatement of the prescription drug benefit significantly increased federal expenses, and over the years, political pressure, influenced by groups like the American Association for Retired People (AARP), has played a critical role in its expansion.