The Social Security Amendments of 1965, signed into law by LBJ and enacted on July 30, 1965, resulted in the creation of two programs: Medicare and Medicaid.
Medicare is a taxpayer shared government subsidized program that, as a US citizen or permanent resident, will cover 80% of all our basic medical needs. The remaining 20% is covered by us, through Medigap. The Medigap program, requires us to: A) to purchase coinsurance “Medicare Supplement” and B) a required deduction from your social security check (approximately $100 – $120) a month to fill the 20% gap.
HEW (Health, Education & Welfare) was the umbrella organization that regulated the Social Security Administration (overseeing Medicare), and Social & Rehabilitation Services (overseeing Medicaid). HEW created the (HCFA) Health Care Finance Administration in 1977 and HCFA later changed its name to the Centers for Medicare & Medicaid Services (CMS) in 2001.
Many politicians were involved in drafting the final bill that was introduced to the United States Congress in March 1965, and on July 30, 1965, President Lyndon B. Johnson signed the bill into law.
The concept of national health insurance began in the early 20th century in the United States and then came to prominence during the Truman administration. Medicare and Medicaid became the United States’ first public health insurance programs.
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Posted by Senior Education Counsel