A brief history of health insurance
coverage reveals that in the aftermath of World War II, the US
government sought to provide maximum benefits to the populations
in her efforts to reduce the burden otherwise incurred on rise
in wages. This policy continued for a number of years, until the
introduction of relevant laws in 1950 to provide Medicare for
the needy populations of the state.
This was also the first time that the government participated in
any form of financing health care on behalf of the populations,
and this was accomplished through direct payment to the various
health care providers including doctors, physicians and
hospitals.
The US government also introduced the famous "Medical Assistance
to the Aged" legislation in the decade of 1960s, opening doors
of medical assistance and other health care services to the
elderly and poor populations though putting restrictions on the
extent of medical expenses.
This was followed by the passage of legislation for the
establishment of 'Medicare and Medicaid Programs' in 1965 making
a part of the Social Security Act. Responsibilities of these
programs was entrusted to the Department of Health, Education
and Welfare, all of who are presently covered under a single
department of Health and Human Services.
The Medicare program was however run by the Social Security
Administration, while the Medicaid program was run by the Social
and Rehabilitation Service. Both these areas were then
transferred to the newly formed Health Care Financing
Administration (HCFA) as of year 1977, and renamed again as the
Centers for Medicare & Medicaid Services (CMS).
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