Healthcare, Medicare, and Medicaid

Healthcare, Medicare, and Medicaid

The U.S. health care system is a scrutinized issue that affects everyone: young, old, rich, and poor. The health care system is comprised of three major components. Since 1973, most Americans have turned to managed-care programs, known as HMOs. The second type of health care offered to Americans is Medicare, health care for the elderly. The third type of health care is Medicaid, a health care program for the poor.

Why is our health care system made up of three components, and how did the U.S. health care system develop?

A Historical View

The idea of prepaid health care dates back to the beginning of the 20th century. The first HMOs were started in the 1920s in Elk City, Oklahoma as a farmers’ cooperative. In Los Angeles, California the Ross-Loos Medical Group offered prepaid medical services to employees and families of the Los Angeles County Department of Water and Power. Other large prepaid group practices originated in the 1940s and 1950s. In 1942 employee health premiums were made tax deductible to employers, not individuals. By this time, many individuals were discouraged from buying health insurance. In 1965 Congress created Medicare. Subsidized, unrestricted health care for the elderly led to enormous spending by patients and doctors. As a result, health care costs went up, making it impossible for individual health insurance.

Many liberals in Congress believed that having the government pay for everyone’s health care could control costs. They promoted the idea of health maintenance organizations. President Nixon proposed the HMO Act. In 1973 Congress passed it. Legal impediments were removed to increase the growth of HMOs. HMOs were developed as pa...

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... which the federal government should contribute. The block grant program has gained popularity because the federal government, simply, transfers Medicaid money to the state to distribute it accordingly. Between 1987 and 1992, thirty mandates were issued to states that related to program eligibility, reimbursements, and services.

Works Cited:

“Medicaid Reform-Introduction.” The Century Foundation: Policy in Perspective. 06 Oct. 2003 .

“Medicaid Reform-What’s Right with Medicaid?” The Century Foundation: Policy in

Perspective. 06 Oct. 2003 .

Medicaid Reform-What’s Wrong with Medicaid? The Century Foundation: Policy in Perspective. 06 Oct. 2003 .