Posts Tagged ‘American’s Health Insurance Plans’

Medicare President Johnson’s Great Society Legacy

Tuesday, August 25th, 2009

On July 30, 1965 – nearly 20 years after Harry Truman first proposed national healthcare insurance – President Lyndon Johnson signed Medicare  into law. The program, one of the most consequential legacies of the Great Society, provides affordable healthcare insurance for people aged 65 and above.

Franklin Roosevelt was the first president to propose government-mandated healthcare insurance as part of his Social Security program, an effort that proved unsuccessful.  After World War II, Truman asked lawmakers to enact a national health insurance plan – again to no avail.lbj_big_picture46152620

“By the time Truman prepared to leave office in early 1953, he had backed off from his original plan of universal coverage.  The focus increasingly turned toward Social Security.  Nearly two decades of futile debate ensued, with conservative opponents, joined by the American Medical Association, repeatedly warning of the dangers of ‘socialized medicine.’”

The legislative gridlock broke when Johnson won the presidency in the 1964 landslide election and brought sizeable Democratic majorities to the Senate and House.  The breakthrough came when House Ways and Means Committee chairman Wilbur Mills of Arkansas had an epiphany and decided to support Medicare.  According to Mills, “I can support a payroll tax for financing health benefits just as I have supported a payroll tax for cash benefits.”

The Medicare bill easily cleared the House by 313 – 115 and the Senate by 68 – 21.  When Johnson signed the legislation into law at a White House ceremony, Harry Truman – aged 81 – attended and was enrolled as the nation’s first Medicare beneficiary.

Healthcare Industry Plan Mandates Welcome Cost Reductions

Monday, May 18th, 2009

Barack Obama may get his way on healthcare reform with the full cooperation of those who vocally lobbied against it during the 1990s.  The timing couldn’t be better — healthcare costs total $2.4 trillion annually (an average of $7,868 per person) and are projected to rise to $4 trillion by 2016.health-care-reform-more-critical-than-ever_large

In a reversal, hospitals, pharmaceutical companies, physicians and other industry leaders presented a plan to the White House proposing to save $2 trillion in healthcare delivery costs over the next 10 years.  Participants included the American Medical Association, the American Hospital Association, the Advanced Medical Technology Association, America’s Health Insurance Plans and the Service Employees International Union — which master-minded the bold move.  Although healthcare costs will continue to rise, this plan will slow the pace.

“We cannot continue down the same dangerous road we’ve been traveling for so many years, with costs that are out of control, because reform is not a luxury that can be postponed, but a necessity that cannot wait,” Obama said.

Obama’s proposed plan is based on the existing system, where employers, the government and individuals share responsibility for paying for privately delivered healthcare.  The government will subsidize coverage for additional people and mandate stricter consumer protection.

It’s evident that the healthcare industry has seen the writing on the wall.  Their willingness to work with the Obama Administration and Congress – compared with the fierce opposition to Bill Clinton’s healthcare reform efforts 15 years ago – is a turnaround that should translate to real change.