Who Started Medicare: A Historical Look at the Origin of Medicare

Introduction

Medicare is a vital part of the United States healthcare system and has been providing health coverage to millions of Americans since 1965. But who started Medicare? This article looks at the historical origins of Medicare and the individuals who were instrumental in its development. We will explore how President Lyndon B. Johnson’s Great Society program led to the creation of Medicare, and how it has evolved over the years. We will also examine the major milestones in Medicare legislation and its impact on the U.S. health care system.

A Historical Look at the Origin of Medicare

The origin of Medicare can be traced back to the 1940s when President Harry S. Truman proposed a national health insurance program. His proposal was met with strong opposition from the American Medical Association and other medical groups, who argued that such a program would lead to government bureaucracy and higher taxes. As a result, Truman’s proposal failed to gain traction in Congress.

In 1965, President Lyndon B. Johnson signed the Social Security Amendments of 1965 into law. This legislation included the creation of Medicare, a health insurance program for individuals aged 65 and older. The man behind the creation of Medicare was Wilbur J. Cohen, an economist and social policy advisor to Presidents Kennedy and Johnson. Cohen had been advocating for a national health insurance program since the 1940s and was instrumental in the passage of the Social Security Amendments of 1965.

The Man Behind the Creation of Medicare

Wilbur J. Cohen was born in Milwaukee, Wisconsin in 1911. He received his bachelor’s degree from the University of Wisconsin in 1932 and went on to earn master’s degrees from the University of Chicago and Harvard University. In 1942, he joined the Social Security Administration (SSA) as a research analyst and was quickly promoted to Chief of the Research and Statistics Bureau. During his time at the SSA, Cohen worked tirelessly to expand the scope and benefits of Social Security.

Cohen was also a passionate advocate for a national health insurance program. He argued that such a program was necessary to ensure that all Americans had access to quality health care. In 1962, Cohen was appointed Assistant Secretary of Health, Education, and Welfare and served as a key advisor to President Lyndon B. Johnson on health care issues. It was during this time that he helped to craft the Social Security Amendments of 1965, which included the creation of Medicare.

How Lyndon B. Johnson’s Great Society Program Led to Medicare

President Lyndon B. Johnson’s Great Society program aimed to eliminate poverty and racial injustice in the United States. As part of the program, Johnson proposed expanding Social Security and creating a national health insurance program for seniors. Wilbur J. Cohen played an important role in crafting the legislation and securing the support of Congress. In 1965, President Johnson signed the Social Security Amendments of 1965 into law, which included the creation of Medicare.

The new program provided health insurance coverage to individuals aged 65 and older. It was funded through a combination of payroll taxes and general revenue, and beneficiaries paid a monthly premium for coverage. Initially, Medicare only covered hospital and physician services, but it was later expanded to include prescription drug coverage, home health care, and other types of health care services.

Understanding the Impact of Medicare on Healthcare

Since its inception, Medicare has had a profound impact on the U.S. health care system. It has improved access to health care for seniors and other vulnerable populations, and has increased cost-effectiveness of health care by reducing unnecessary hospitalizations and other costly treatments. Medicare also provides important protections for seniors, such as capping out-of-pocket expenses and offering free preventive services.

According to a 2017 report by the Kaiser Family Foundation, “Medicare has become an essential part of the health care system and a lifeline for millions of seniors and people with disabilities.” The report found that Medicare covers more than 57 million people and accounts for 14 percent of total national health spending.

Tracing the Evolution of Medicare from 1965 to Present Day

Medicare has evolved significantly since 1965. It now consists of four parts—Part A, Part B, Part C (also known as Medicare Advantage), and Part D (prescription drug coverage). Medicare Part A covers hospital services, while Part B covers physician services. Medicare Advantage plans are offered by private health insurers and provide additional coverage, such as vision, dental, and hearing.

Medicare Part D was added in 2006 and provides coverage for prescription drugs. The Affordable Care Act of 2010 expanded Medicare benefits to include preventive care and certain preventive screenings, as well as closing the “doughnut hole” in prescription drug coverage.

Exploring the Major Milestones of Medicare Legislation

Since 1965, there have been numerous amendments to the Social Security Act of 1965 that have expanded the scope and benefits of Medicare. In 1972, Congress passed the Medicare Secondary Payer Act, which established Medicare as the primary payer of health claims and created a framework for coordination between Medicare and private health insurance. In 1983, Congress passed the Medicare Catastrophic Coverage Act, which extended coverage to individuals with long-term illnesses and disabilities.

The Balanced Budget Act of 1997 added several new benefits, including hospice and skilled nursing facility care, and expanded coverage for preventive care and prescription drugs. The Medicare Improvements for Patients and Providers Act of 2008 made further improvements to Medicare, such as increasing payment rates for physicians and providing incentives for providers to adopt electronic health records.

Most recently, the Patient Protection and Affordable Care Act of 2010 made several changes to Medicare, including closing the “doughnut hole” in prescription drug coverage and expanding coverage for preventive services. The 21st Century Cures Act of 2016 also included provisions to improve access to care for Medicare beneficiaries.

Conclusion

Medicare has had a profound impact on the U.S. health care system since its inception in 1965. Its evolution from a basic hospital and physician coverage plan to one that includes prescription drug coverage, preventive care, and other services has improved access to health care for millions of Americans. The key players in the development of Medicare include President Harry S. Truman, President Lyndon B. Johnson, and Wilbur J. Cohen, who was instrumental in advocating for and crafting the Social Security Amendments of 1965.