PPt-17B Medicare Presentation

PPt-17B Medicare Presentation - Medicare History of...

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Medicare
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History of Medicare (Source: “History of Medicare” at http://www.ssa.gov/history/corning.html) Medicare became law: 1965 . But idea not new. Idea that Govt establish insurance for workers & employers in the form of taxes and pay out benefits IAW a predetermined schedule began to emerge in early 1900s American Assn for Labor Legislation (AALL) , a private reform group formed 1906 , spearheaded movement toward Govt health insurance AALL was an informal coalition of physicians, lawyers, businessmen, professors, labor leaders. Politicians, and social workers.
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1915 AALL developed a “model” health insurance bill Model bill called for Protection of , providing cash compensation broad hospital and medical benefits So the debate was launched By 1917: 12 state legislatures agreed to study proposal. after study, 3 state commissions - CA, MA, & NJ – favored proposal. AMA, Natl Assn of Manufacturers, Amer Hospital Assn seemed open minded Several prominent people supported idea, including former
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Then came a set back. Between 1918-1920 several state appointed commissions reported unfavorably on idea. 1918 Calif voter referendum defeated idea by 2-1 Societal attitudes reflected a more Jeffersonian v. Hamiltonian approach . Hamiltonians: believed govt had major role to play in promoting econ development Jeffersonians: wary of govt, favored individualism; “That Govt is best which governs least.” On balance individualistic strain has been relatively stronger in US, especially in field of social welfare. And in early 20th C individualistic strain was strong
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Social Darwinism also played a role. Drawin’s “survival of the fittest” often seen as harsh – the every man for himself idea, But seen by many as necessary for human progress And White House occupied by Woodrow Wilson , whose impulses were antagonistic to social insurance Thus idea of govt health insurance out of sink with public philosophy Moreover, prior to FDR’s“New Deal,” Congress, Supreme Court, and leading const lawyers generally interpreted the Const that principal responsibility for social welfare was left to states But States very reluctant to take on such a costly program
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Thus during 1920s AALL turned its attention away from health issues & focused on other forms of social insurance In 1927 Committee on the Costs of Medical Care (CCMC)was established But by 1932 only a few in CCMC favored compulsory Govt health insurance . They argued European experiments w-voluntary health insurance failed to protect lower income gps, since they were least likely to subscribe & compulsory Govt programs viewed as more efficient since econ risks spread more widely As result, European Govts had opted for Govt health insurance But majority of CCMC favored private insurance ,
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With Depression of the 1930s , political tide began to
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This note was uploaded on 12/09/2011 for the course ACCT 2101 taught by Professor Turner during the Spring '08 term at Georgia Tech.

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PPt-17B Medicare Presentation - Medicare History of...

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