The History of Medicare - By: Dan Brathers

During the mid-20th century, the leaders and officials of Social Security recognized that there were senior Americans that weren?t getting the proper healthcare that they needed. This system had failed to meet the needs of these people, even though they were supposed to be a safe haven for elders who faced financial crisis. During this time 66% of elder Americans had a yearly income of lesser than $1,000. Elders were considered a threat to private insurance companies because they have a higher rate of developing illnesses and/or injuries. Also, the unions had a difficult time as far as covering those that had retired.

There were several debates throughout the years to decide what was needed to be done. In 1960, this issue was pushed to the forefront when it was clear that these private insurance companies were simply unable to provide health coverage to the senior citizens. The population was rapidly growing with seniors, and so was the cost of hospital care. There were many times when the average yearly cost for hospital care outgrew the income of senior citizens. In order to have some support for these costs the private insurance companies would raise premium rates which would in turn make it a hassle for senior citizens to work with them. These rates were too expensive to for the seniors who lived on a fixed income to afford.

Between the years of 1960 and 1965, the issue of healthcare became a very important subject. After strenuous debates and discussions, in 1965, the House and Senate passed a bill that set the foundation for Medicare, which is a program that provides health care coverage and a reasonable cost for all senior citizens. This system reimburses hospitals and physicians for medical care for those who are over 65 years of age. Medicare was extended for those who have disabilities and for those who have end-stage renal disease.

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