Medicare provides health care to elderly and disabled Americans.
The Social Security Administration oversees the Medicare and Medicaid programs. Medicare provides federal health insurance to help the elderly afford rising medical costs, while Medicaid offers medical coverage for those at or below the poverty line.
The origins of the modern Medicare program trace to 1965, during the administration of Lyndon B. Johnson, the 36th president of the United States.
Function
While seniors need increased health coverage to combat problems of old age, medical premiums go up with age. Since income also declines for the elderly, this situation left many older Americans without the means to afford health coverage.
While some state medical assistance programs existed before 1965, these measures were limited in scope, leading to federal involvement in the health care sector.
Benefits
Two major programs, known as hospital insurance and medical insurance, are financed through a tax on earnings of 2.9%, usually split between the employer and employee.
Hospital insurance provides coverage, which includes a bed, food, necessary medical tests and fees for doctors. Beneficiaries also receive nursing facility care, if extended convalescent care is necessary.
Medical insurance offers economic aid to the poor and elderly, which includes funds for vaccinations, x-rays, dialysis and chemotherapy. The Medicare Act also covers outpatient procedures, which are preplanned, as opposed to emergency care.
History of Social Security
Medicare was created through revisions of the Social Security Act, known as the Social Security Amendments of 1965. Franklin Delano Roosevelt spearheaded the Social Security Administration during his presidency in 1935.
The Social Security program provided old age pensions to seniors but did not provide any health coverage. The first health insurance bill came into existence in this same year, but it did not pass Congress.
Early Proposals
Two presidents after Franklin Roosevelt attempted to push health insurance reform through Congress. In 1945, Harry S. Truman endorsed a national health care plan. In 1961, John F. Kennedy recommended that Congress provide health insurance to the elderly, by extending the Social Security program.
Social Security Act of 1965
Beginning in 1963, President Johnson began to push for a national health care program to provide health care for the elderly.
After a year and a half of work in Congress, the Medicare program became established in 1965, as an amendment to the original Social Security Act of 1935. The bill itself took more than 500 revisions before passage.
The Social Security Act of 1965 added two titles to the Social Security Administration. Title XVIII, known as Medicare, provided hospital insurance and supplemental care, while Title XIX, known as Medicaid, helped provide medical support for the poor.
Significance
Millions of Americans who were unable to pay their medical fees finally received medical care. Later additions to Medicare expanded benefits to include more groups and additional benefits.
While the growth of the Medicare and Medicaid programs may be in jeopardy as fewer workers support more elderly and impoverished individuals, the Social Security Act of 1965 continues to provide much needed coverage to the poor and old.
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