'In March 1965, Mills presented a draft of the bill to Congress. The bill went through more than five hundred amendments before being passed by majority vote in both the House (307-116) and Senate (70-24) The legislation made two amendments to the Social Security Act of 1935. Title XVIII, which became known as Medicare, includes Part A, which provides hospital insurance for the aged, and Part B, which provides supplementary medical insurance. Title XIX, which became known as Medicaid, provides for the states to finance health care for individuals who were at or close to the public assistance level with federal matching funds'.
The idea that the American people have had all their wealth stolen in fraud and lost through ever lower wages places most in a category of drawing on funds when they used to pay into these funds paying taxes feeds this drive to end these programs.
PEOPLE ARE JUST TOO POOR AND ARE NOT SUPPORTING THESE FUNDS ANYMORE SAY GLOBAL CORPORATE POLS. THAT WAS WHY THESE WAR ON POVERTY PROGRAMS WERE INSTALLED!
The War on Poverty’s surprising success
01/08/14 04:00 AM--Updated 05/23/14 02:20 PM
By Timothy Noah
Fifty years ago today, President Lyndon Johnson declared “unconditional war on poverty in America.” Narrowly defined, the war failed, in two ways. Most obviously, poverty still exists—indeed, the official poverty rate is only four percentage points lower today than it was then. Moreover, the government agency created to implement the War on Poverty–the long-forgotten Office of Economic Opportunity (OEO)–had lost Johnson’s active support by 1967, was actively undermined by President Richard Nixon (who briefly appointed the reactionary Howard Phillips to run it), and was finally put out of its misery by President Ronald Reagan in 1981.
But the official poverty numbers mask a substantial reduction in poverty attributable to government efforts, and although the OEO proved a short-lived failure, other poverty programs implemented under Johnson–Medicare, Medicaid, and, yes, food stamps–achieved measurable success.
Even judging by the official poverty rate (currently $23,550 for a family of four), Johnson’s anti-poverty programs enjoyed initial success. The poverty rate for African-Americans dropped precipitously for the remainder of Johnson’s term. It evened off for the next 25 years, then dropped again under President Bill Clinton before rising slightly during the past decade. The poverty rate for the elderly dropped dramatically under Johnson and Nixon and, less dramatically, continues to do so. Overall, the official poverty rate declined significantly through Nixon’s first term before leveling off; since the 2008 crash it’s been rising.
None of these calculations include in-kind benefits through Medicare, Medicaid, and the Supplemental Nutrition Assistance Program, and none include the Earned Income Tax Credit, a program targeted to the working poor that was implemented under President Gerald Ford and greatly expanded under Reagan and Clinton. When these are factored in, the poverty rate has dropped nearly in half. That’s especially notable when you take into account that the 1996 welfare-reform bill, in addressing concerns that cash assistance to the jobless fostered dependency, cut the federal government’s cash-assistance caseload by 60%. Clinton really did end “welfare as we know it.” Unfortunately, the right responded by redirecting its fire toward non-cash programs that assist the working poor.
Government programs weren’t the only reason poverty declined. Sharon Parrott of the Center on Budget and Policy Priorities, a nonprofit, points out a few other factors: high school graduation rates rose, families got smaller, and more women entered the workforce. (Less beneficial from an economic standpoint was a sharp rise in single parenthood.) But the much-reviled welfare state played a significant role in reducing poverty. Parrott observes that in 1967, government raised a mere 4% out of poverty, and today it raises more like 44%.
Ironically, it isn’t the government that’s failed the poor so much as the market economy. After 1979 the poor, defined as the bottom 20% in income distribution, saw no increase in their share of the nation’s pre-tax income (while the middle class saw its share decline). In absolute terms, pre-tax income rose two-fifths for the bottom 20%, compared to nearly three-fifths for the top 20%. For the top one percent, it more than tripled. Rather than pay workers a living wage, corporations like Wal-Mart and McDonalds guide them to government assistance programs. The majority of food-stamp recipients–and more than 60% of food-stamp recipients with children–have jobs. They just don’t get paid enough to eat. Whatever welfare dependence existed before 1996 has shifted from individuals to corporations.
Maybe it’s time the U.S. Chamber of Commerce declared its own War on Poverty by directing its members to raise wages for the working poor. But since that will never happen, the Obama administration proposes raising the minimum wage instead. Even better would be the removal of at least a few government obstacles to union organizing. But even Johnson, at the height of the Great Society—the most ambitious expansion of government power since the New Deal–lacked sufficient clout to achieve that.
Remember, Reagan tripled payroll tax rates in the 1980s under the guise of having plenty of funding for Social Security and Medicare and indeed---plenty of money has bee paid. Reagan sent these payroll funds to the US Treasury instead of our Trusts and as we know tens of trillions of dollars in corporate fraud last decade fleeced the Treasury and our Trust funds.
Maryland acts if all state trusts are fungible and deliberately pretend that social services are funded and people covered all the while knowing these monies are being fleeced. Whether seniors or poor----most of what these Federal funds are supposed to give are YOUR TAX MONEY AT WORK!
IT IS CHEAPER TO ALLOW EVERYONE ACCESS THAN THE COSTS FOR WHAT HAPPENS WHEN WE DO NOT.
They are only moving these social funds to corporate profit-----your tax rates will not change!
LBJ and the Initial Cost of Medicare
Posted on March 12, 2013
When Johnson was pushing congress to establish the nation’s first real health care funding, many legislators, especially conservative southern Democrats, balked at the cost. Johnson was well aware that Medicare would be costly. But he thought health insurance was too important, in reducing poverty among elderly people, to let costs get in the way. He persuaded these legislators in his famously raconteurish way:
I’ll take care of that, I’ll do that. . . . When they asked me, do you want to put in anothe 400 or 500 million [to cover Mills’s Medicare expansion], . . . what did I say about it? . . . I said we had an old judge in Texas one time . . . we called him Al Caldy . . . old Al Caldy Roberts, and he said, when they talked to him one time that he might’ve abused the Constitution and he said, “What’s the Constitution between friends?” And I say, tell Wilbur that 400 million’s not going to separate us friends when it’s for health.
Below you see a well-researched paper on health fraud. Notice that the amount of fraud back in 1998 was $250 billion a year.....THAT WAS BEFORE CORPORATE FRAUD WENT ON STEROIDS
'It is clear to see why Americans consider this the biggest cause, when health care fraud was estimated to cost approximately $100 billion to $250 billion per year in 1998, or 10 percent to 25 percent of total health care spending'
An Undergraduate Honors Thesis
Health care fraud is an important and visible factor associated with increasing health care costs in the United States. Medicare and Medicaid contribute to a vast majority of those cost sand therefore must be heavily scrutinized. This thesis will investigate the types of fraud, who commits them, and why the health care system is more susceptible to fraud. More specifically, the problems and complications of current fraud investigation for Medicare and Medicaid are examined. This thesis will then evaluate how successful these initiatives were in reducing health care fraud and explore new suggestions for preventing health care fraud in the future.
'An employer's federal payroll tax responsibilities include withholding from an employee's compensation and paying an employer's contribution for Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA)'.
The American people have paid their entire lives Medicare taxes and income taxes all of which more than allow for all access to health care they need. Estimates for a citizen retiring today that has worked since high school is $1 million dollars worth of Medicare coverage if these taxes were adjusted for inflation....remember, we have manipulated inflation now, not real inflation.
Decades of payroll taxes are joined with all of the Federal funding that went to NIH and NCI and other national research agencies that did good work in finding new technology and medical advances. ALL OF THE PAST CENTURY'S MEDICAL ADVANCES WERE PAID FOR WITH OUR TAX MONEY! WE OWN THESE MEDICAL ADVANCES. Yet, all of those medical advances are supposedly no longer available because 70-80% of Americans have been made low-income and cannot afford to pay new levels of health insurance premiums.
MEDICARE IS A CONSTITUTIONAL AMENDMENT THAT SAYS SENIORS WILL HAVE ACCESS TO THEIR HOSPITAL NEEDS AND IF THE CO-PAYS AND DEDUCTIBLES ARE TOO HIGH---THEY ARE BEING DENIED THEIR CONSTITUTIONAL RIGHTS.
'NIH is the nation’s medical research agency—supporting scientific studies that turn discovery into health'.
The health industry does not own these medical advances----WE DO.
How is Medicare funded?
The Centers for Medicare & Medicaid Services (CMS), a branch of the Department of Health and Human Services (HHS), is the federal agency that runs the Medicare Program and monitors Medicaid programs offered by each state.
In 2011, Medicare covered 48.7 million people. Total expenditures in 2011 were $549.1 billion. This money comes from the Medicare Trust Funds.
Medicare Trust Funds Medicare is paid for through 2 trust fund accounts held by the U.S. Treasury. These funds can only be used for Medicare.
Hospital Insurance (HI) Trust Fund How is it funded?
- Payroll taxes paid by most employees, employers, and people who are self-employed
- Other sources, like income taxes paid on Social Security benefits, interest earned on the trust fund investments, and Medicare Part A premiums from people who aren't eligible for premium-free Part A
- Medicare Part A (Hospital Insurance) benefits, like inpatient hospital care, skilled nursing facility care, home health care, and hospice care
- Medicare Program administration, like costs for paying benefits, collecting Medicare taxes, and combating fraud and abuse
- Funds authorized by Congress
- Premiums from people enrolled in Medicare Part B (Medical Insurance) and Medicare prescription drug coverage (Part D)
- Other sources, like interest earned on the trust fund investments
- Part B benefits
- Part D
- Medicare Program administration, like costs for paying benefits and for combating fraud and abuse
Medicare and Medicaid were successful programs loved by both Republican and Democratic voters. It is a human right and not simply a civil and Constitutional right. The Medicare Insurance system is the best in the world and the data collected from decades of service is the source for what medical procedures should cost. We have all of the information Obama and Clinton neo-liberals are pretending now need to be remodeled by the very health industry that has looted our Trusts for decades------creating policy that guarantees the health industry profit no matter what. Obama is dismantling Federal Medicare and outsourcing these agencies just as other Federal agencies have been and he thinks its a good idea to hand Medicare and Medicaid fraud to Wall Street collection firms as the avenue to justice from hundreds of billions of dollars in health industry fraud. Will Wall Street focus on corporate fraud?
OF COURSE NOT----IT WILL LOOK AT THE LITTLE GUY FIGHTING FOR HIS LIFE TO GET CARE THAT HIS BRONZE INSURANCE POLICY WON'T GET HIM.
Watching love ones die for no reason will become the rule if these policies are not reversed. Stop listening to the corporate propaganda about how this has to be done for the good of the programs or that it lifts everyone to access----EVERYONE HAD ACCESS AND NOW MOST PEOPLE WILL NOT.
In Maryland, it is the justice and labor organizations being brought out to support Affordable Care Act with leaders knowing it dismantles these Federal programs. Absolutely no media covers the goals of these private state health systems moving now to global health systems under the new Governor Hogan.
ALL OF MARYLAND POLS ARE GLOBAL CORPORATE POLS WORKING TO HAND ALL THAT IS PUBLIC TO GLOBAL CORPORATE PROFITS!
War on Poverty: 'Incalculable gain' for elderly
President Lyndon B. Johnson signs the Medicare bill into law in this July 30, 1965, photo by Associated Press as former President Harry S. Truman looks on at the Truman Presidential Library in Independence, Mo. At rear are Lady Bird Johnson, Vice President Hubert Humphrey and former first lady Bess Truman. (The Associated Press file photo ) Print By Lu Feorino
on January 29, 2015 at 7:00 AM, updated January 29, 2015 at 7:02 AM
Poverty rates for the elderly plummeted since the 1960s thanks to changes in Social Security during the 1960s and 1970s and the creation of Medicare and Medicaid, according to reports reflecting on the 50th anniversary of the War on Poverty.
"It dramatically improved the economic condition of seniors," said Gerald Friedman, chairman of the economics department at the University of Massachusetts at Amherst, about the moves to improve the income and health care of the elderly.
"It also helped their children raise their children with less fear of going bankrupt because of grandma's care. You could save the money and send your kids to college." Medicare helps with the seniors' medical bills, Medicaid with nursing home costs.
Following President Lyndon B. Johnson's speech to Congress on the War on Poverty in 1964, the Social Security Act was amended in 1965 to expand benefits and create Medicare, which helps pay the medical bills of the elderly and Medicaid, which helps the poor.
Among the changes to the Social Security Act in 1965 was a 7 percent increase in cash benefit and a liberalization of the definition of disability and how much a person could earn and still receive benefits. Amendments approved by Congress and signed into law by Johnson in 1968 provided a 13 percent increase in old age, survivors and disability insurance benefits among other provisions.
President Richard Nixon's administration in 1972 approved an amendment to Social Security to index benefits to the cost of living.
Several measurements of poverty show a subsequent and dramatic drop in rates for the elderly.
The U.S. Census Bureau's official measure of poverty shows the rate of elderly poor dropping from 30 percent to 9 percent between 1967 and 2012, according to the Center on Budget and Policy Priorities, which studies issues affecting low- and moderate-income families.
A Columbia University "anchored" version of the census bureau's more expansive supplemental poverty measurement shows the rate dropping from 47 percent to 15 percent between 1967 and 2012, the center said in a January 2014 report. One of the reasons for the difference from the official rate is the second measurement includes out-of-pocket medical expenses for the elderly.
In the report, "The War on Poverty 50 Years Later: A Progress Report," by the president's Council of Economic Advisers, poverty for those 65 and older sank from 35 percent in 1960 to 14.8 percent in 2012.
"The program's impacts on elderly poverty are profound," the report stated in January 2014. "Without Social Security income, the poverty rate of the elderly would be 54.7 percent."
The role Medicare and Medicaid play in seniors' financial well-being was also discussed in the report.
"In the absence of Medicare and Medicaid, out-of-pocket medical expenses of the elderly would almost certainly cause their poverty to be much higher than ... 14.8 percent."
Friedman said that while the elderly and their families benefited from Medicare, the program was a health boon to all black Americans, especially those in the South.
The federal Medicare couldn't be used in segregated hospitals. "Within two years hospitals were integrated throughout the South. You can see the drop in mortality rates" reflected in statistics, Friedman said.
Before the integration, black Americans might face a long trip to access inferior medical care at an underfunded facility, Friedman said. This affected all black Americans in need of medical care – women in labor, accident victims and those having heart attacks.
The program also helped eradicate the fear among the elderly of dying because of unaffordable medical treatment.
"That's an incalculable gain in a peoples' quality of life," Friedman said.
According to the Harry S. Truman Presidential Library and Museum, Johnson credited efforts of Truman with prompting the passage of the Medicare amendment.
Seeing the number of draftees who failed physicals during World War II, Truman believed the average American could not afford medical care, according to the library website. "I am trying to fix it so the people in the middle-income bracket can live as long as the very rich and the very poor," Truman said.
Truman's 1945 proposal for a national health insurance program, called "socialized medicine" by the American Medical Association, failed.
After signing the bill Johnson presented Truman and his wife, Bess, with Medicare cards number one and two.