Development and Experience with Diagnosis Related Groups (DRGs) in USA

History Unlike much of Europe and selected other areas of the world, the United States offered no health service plan for two vulnerable, often disadvantaged groups; namely the poor, and the elderly. There are books and chapters written about the struggle to offer health cost protection to the elderly and to the poor since 1919. Progress finally happened after a series of political compromises and in 1965, the U.S. government passed a law providing health care coverage for two segments of the population not covered by employee benefits. A Federal program called ”Medicare“ covered the population age 65 and above…