1960's Medicine and Health | Government Health Programs

Johnson's Health-Care Program.

President Lyndon B. Johnson's Great Society program proposed far-reaching legislation on health care, the backbone of which was the Medicare program. Medicare was enacted in a bill signed in 1965 that extended social-security insurance to cover medical expenses for all citizens over 65 years of age. The program, which went into effect on 1 July 1966, was voluntary, but estimates were that 85-95 percent of those eligible would participate. Funding came from increased payroll taxes.

The Design of Medicare.

Medicare has had two different parts since its inception. Part A covers hospitalization, outpatient diagnostic services, home-nursing ser-vices, and nursing-home care. Part B can be added voluntarily to cover doctor's fees and drug costs as well as other incidentals; it cost three dollars per month in 1966. The program was designed to be managed by Blue Cross or a similar organization...