1965 Medicare amendment
For Filipino nurses, 1965 Medicare amendment to the Social Security Act is the invisible hand of providence. America need nurses and doctors to care for the sick and elderly. Philippines graduated more nurses and doctors than the economy can absorb. Classic free market at work globally. Benign assimilation of America began.
The elderly population was continuing to increase at a rapid rate. Between 1950 and 1963, their number grew from about 12 m to 17.5 m, or from 8.1 to 9.4 % of the total population. Meanwhile, the cost of hospital care continued to rise at about 6.7 % a year, several times the annual increase in the cost of living. From 1960 to 1964, average hospital costs increased from about $29 to $40 a day, with no sign of any letup in the rate of increase. As a result, private health insurance carriers were repeatedly forced to increase premium rates (or else "bleed" the coverage of their policies), making private insurance ever more prohibitive (or less adequate) for the many old people who were living on fixed incomes. By 1964 the proportion of the aged who were privately insured for hospital care seemed to be leveling off at about 50%. A Senate study that year estimated that only one-half of the policies issued to
retirees provided comprehensive coverage (75% or more of average hospital bill). In other words, only about 1 in 4 of the aged had adequate hospital insurance protection.
When the King-Anderson bill was submitted anew to the 89th Congress, in January 1965, it was accorded the honor of being the first bill introduced in each chamber (H.R. 1 and S. 1). Immediately afterward, Chairman Mills took charge of re-drafting the bill into its final form. During the next 2 months, the chairman was the focus of a many-sided negotiation process between the various interests that would be responsible for administering the Medicare program, or who had some stake in its operation--physicians, nurses, hospital administrators, nursing home representatives, State health and welfare officials, labor leaders, insurance industry representatives, Federal officials, and many others. Inevitably, there were conflicts over technical matters, some of which had important economic, social, and political implications ; but never during these months was the basic policy decision in doubt, despite last-ditch resistance by organized medicine and some of its allies.
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