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In 1965 the Social Security Act established both Medicare and Medicaid Medicare was a responsibility of the Social Security Administration SSA while Federal assistance to the State Medicaid programs was administered by the Social and Rehabilitation Service SRS SSA and SRS were agencies in the Department of Health Education and Welfare HEW In 1977 the Health Care Financing Administration HCFA was created under HEW to effectively coordinate Medicare and Medicaid In 1980 HEW was divided into the Department of Education and the Department of Health and Human Services HHS In 2001 HCFA was renamed the Centers for Medicare Medicaid Services CMS Medicaid is a program that pays for medical assistance for certain individuals and families with low incomes and resources This program became law in 1965 and is jointly funded by the Federal and State governments including the District of Columbia and the Territories to assist States in providing medical long-term care assistance to people who meet certain eligibility criteria Medicaid is the largest source of funding for medical and health-related services for people with limited income The first US President to propose a prepaid health insurance plan was Harry S Truman On November 19 1945 in a special message to Congress President Truman outlined a comprehensive prepaid medical insurance plan for all people through the Social Security system The plan included doctors and hospitals and nursing laboratory and dental services it was dubbed National Health Insurance Furthermore medical insurance benefits for needy people were to be financed from Federal revenues Over the years lawmakers narrowed the field of health insurance recipients largely to social security beneficiaries A national survey found that only 56 percent of those 65 years of age or older had health insurance President John F Kennedy pressed legislators for health insurance for the aged However it wasnt until 1965 that President Lyndon B Johnson signed HR 6675 The Social Security Act of 1965 PL 89-97 to provide health insurance
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