History of Health Insurance in the US: Part III

The battle continues.

• The New Dealers attempts for national health insurance was dealt a final death blow in 1939 with the defeat of the Wagner Health bill by the U.S. Congress.
• The outbreak of World War II buried the issue of national health insurance for the time period.
• The National War Labor Board (NWLB) freezes wages to head off labor disputes so employers offer health insurance coverage as a means to attract workers.
• Between 1945 and 1952, President Truman attempts to pass legislation for federally funded medical care but can only block legislation that would have required a poverty test for those seeking insurance aid and legislation that would have expanded the influence of the Blue Cross Blue Shield system.
• During the Eisenhower administration hospital and medical costs rose at a rate that created public pressure for federally funded relief. The AMA agreed to work with the Eisenhower administration to relieve the situation. As a result, in 1960 the Kerr-Mills bill passed which provided funding to the states to assist with the health costs for the elderly.
• In 1961, the AMA helped to defeat the King-Anderson bill which would have paid for hospitalization for the elderly through the Social Security system.
• John Kennedy included federally funded health insurance in his New Frontier programs but he was defeated in Congress.
• In 1964, President Johnson too was defeated in his attempt to pass his hospitalization program.
• A change in the makeup of Congress in 1965 created a climate that allowed for passage of Medicaid and Medicare.

To learn more about the history of health insurance in the United States, click here and here.

Our history of health insurance is not a pretty one. For the most part, the patchwork of programs and plans that we have today is the result of organizations with different agendas having control at different times. These organizations for the most part represent two camps. One that desires profit and another that desires comprehensive universal coverage.

Rather than “do the right thing” our leaders in business and politics have done their thing. It’s time to agree on the definition of the “right thing” and make it happen.