Essay on Benefits Of Medicare And Medicaid

763 Words Jan 17th, 2016 4 Pages
Medicare and Medicaid were signing into Law on July, 30, 1965 by President Lyndon Johnson. Medicare legislation provided hospital and medical insurance to those over the age of 65 while Medicaid provided hospital and medical insurance to the indigent or disabled. Oberlander (2015) suggests that the Medicare program is utilized by most aging Americans consequently becoming the largest purchaser of medical services in the United States. Medicare and Medicaid provided immediate benefits to the elderly and indigent and would dramatically change the way health care is delivered and payed for in its first 50 years.
Before Medicare and Medicaid
Health care delivery, payment and access have undergone dramatic changes since the formation of the United States. Sultz & Young (2014) argue that health care in the 19th and early 20th century was principally driven by patients and their physician. Physicians would often render care in the patient’s house while payment for services were negotiated confidentially between parties and were often adjusted based on the patient’s ability to pay. Sultz & Young (2014) describe early hospitals as primarily charitable organizations that cared for the mentally ill, vagrants and the contagiously sick. As the scope of services offered in hospitals grew so did the physician utilization. Many Americans, especially the elderly and poor could not afford these services. Health insurance was not embraced by physicians and many politicians…

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