Social Insurance Vs Medicare Essay

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Medicare and Medicaid are both key programs in the social insurance program. However, they are different from each other and they are indeed vulnerable in different ways. Medicare originally served as an insurance for the old people just like Social Security. People would see it as an entitlement as they would think it would be great if we can get health care in exchange for the service we provide for the country. There are two parts of the Medicare at the beginning, part A which is hospital insurance and part B which is medical insurance. Over the year, the Medicare is expanding. In 1972, President Nixon expanded the Medicare to serve the disabled population and enhanced rural care system a well. During the period between 1972 and 2000, Medicare …show more content…
However, the idea was developed earlier in 1950s: federal government provided grants tied to AFDC to provide health care for the poor. In 1960, state was allowed to cover impoverish elderly. In 1965, finally, the official Medicaid came out as a joint effort from the cooperation of federal and state to provide health care to eligible impoverished people. State comes up with the money to support the program and the amount actually differs between states. So state has the right to act what they want in this context. In 1980s, AFDC and Medicaid decoupled and the program expanded to children and pregnant women. In 1988, the program mandate the coverage to the pregnant women up to 100% of poverty line. In the following year, it expands to 1 to 5 years old children at 130% of poverty line. Medicaid also faces a lot of challenges and is very vulnerable. Similar to Medicare, the funding and administration are tough issues. The programs are very costly to operation. However, Medicaid faces other challenges from the state level. Since each state will have different coverage and different clause, inequality between states is huge. People become more vulnerable due to the lacking of long term care and rural care in Medicaid. Mean-tested program is also mentally stressful for impoverished

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