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The Evolution and History of the Social Security Act of 1935 with Particular Reference to the Attitude of the American Medical Association

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The Evolution and History of the Social Security Act of 1935 with Particular Reference to the Attitude of the American Medical Association University of Montana ScholarWorks at University of Montana Graduate Student Theses, Dissertations, & Professional Papers Graduate School 1962 The Evolution and history of the Social security act of 1935 with particular reference to the attitude of the American Medical Association Russell Joseph Ritter The University of Montana Follow this and additional works at: https://scholarworks.umt.edu/etd Let us know how access to this document benefits ou.y Recommended Citation Ritter, Russell Joseph, "The Evolution and history of the Social security act of 1935 with particular reference to the attitude of the American Medical Association" (1962). Graduate Student Theses, Dissertations, & Professional Papers. 8971. https://scholarworks.umt.edu/etd/8971 This Thesis is brought to you for free and open access by the Graduate School at ScholarWorks at University of Montana. It has been accepted for inclusion in Graduate Student Theses, Dissertations, & Professional Papers by an authorized administrator of ScholarWorks at University of Montana. For more information, please contact [email protected]. THE EVOLUTION AND HISTORY OF THE SOCIAL SECURITY ACT OF 1935 WITH PARTICULAR REFERENCE TO THE ATTITUDE OF THE AMERICAN MEDICAL ASSOCIATION by RUSSELL JOSEPH RITTER A. B. Carroll College, 1957 Presented in partial fulfillment of the requirements for the degree of Master of Arts MONTANA STATE UNIVERSITY 1962 Approved by; ___________ Chairman, Board of Examiners Dean, Graduate School OCT 5 Date Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number: EP39772 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. UMT Oissartation PuMiahmg UMI EP39772 Published by ProQuest LLC (2013). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code uesf ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS CHAPTER PAGE PREFACE: THE DEBATE OVER MEDICARE.............. 1 I • INTRODUCTION lA Early Attempts of Social Legislation in Germany ........ 27 France 29 Austria •e«»aoaod«o««eoo«i»oeo«oe»aoooooooosoo« 31 C h i l e ......... 32 Great Brxtaxn 33 II. THE COMING OF SOCIAL SECURITY TO THE UNITED STATES ....... 38 Technocracy 39 Share-Our-Wealth Movement ..... 41 Upton Sxnclaxr anU EPIC ............o......... 43 The Townsend Plan ............................ 4^ Franklin Roosevelt and the New Deal .......... 59 III. SOCIAL SECURITY AND THE AMERICAN MEDICAL ASSOCIATION ...e.............................. 86 BIBLlOGRAPHY ........o.............................0.0.127 -XX- Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PREFACE THE DEBATE OVER MEDICARE The State Department auditorium was crowded with re­ porters from the vast news media of the nation and foreign countries. A few minutes after two P.M. on Wednesday, May 23, 1 9 6 2, the President of the United States, John F. Kennedy, flanked by his press secretary, Pierre Salinger, appeared before the waiting group. The usual respectful silence settled over the room as the President approached a speakers rostrum. "May I have your questions, gentlemen,"^ signi­ fied the chief executive had no prepared statement to read. The reporters began immediately to vie for attention, for pressing issues of a bewildering variety faced the country. "The refugee problem in Hong Kong ;" "Surplus food to Communist China;" "Whether the Army Group in Thailand is equipped with live ammunition" — were some of the first 2 topics raised. Then Richard E, Mooney, Washington corre­ spondent for The New York Times. caught the President’s attention and asked; Mr. President, could you tell us what you have thought of the American Medical Association’s reply on Monday to your proposals - your speech on Sunday about medical care and also could you tell us what sort of reaction you have had so far 1 The N^w York Times. May 23, 1962, p. 1. ^Ibid.. p. 1 6. - 1- Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. —2 — in the White House to the two television speeches - yours on Sunday and the American Medical Associ­ ation’ s ."3 Before quoting the President’s reply to this question it is necessary to offer some background and explanation to the problem to which reporter Mooney referred. The term medical care, or ’medicare’ as it is sometimes called, has been used to designate a number of programs designed to finance medical care under public authority.^ Six years ago, in 1956, Congress with the co-operation of the American Medical Association, set up a plan to provide free medical attention for dependents of military officers and enlisted men through private doctors at civilian hospitals. This medicare program pays for up to a year’s hospital­ ization, covers a wide variety of services and even sets maximum doctor’s fees.^ Another plan which would fall under this broad interpretation of the terra medical care is the Kerr-Mills Act passed by Congress in I9 6 0, which provides for the Federal Government to match state funds in cases where an individual is unable to provide for his medical 6 obligations. ^Ibid. ^Donald R. Campion, "Primer on MedicareAmerica. June 9, 1962, p. 3Ô3. ^"Siege Tactics of the A.M.A.," Reporter. April 26, 1 9 6 2, p. 2 9. ^"Health Tactics Would Buy Disappointment," Nation’s Business. April, 1962, p. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. - 3 - Certain facts of American contemporary life explain the recent increase of concern over the health needs of our older population. This accounts for the interest in medical care of the aged at this time. The life span of Americans has lengthened twenty years since 1900. In 1920, only if.7 per cent of the population were sixty-five years of age or older. In 1962 this figure has risen to 9=2 per cent — a total population of seventeen million Americans in this older age bracket. Costs of medical treatment and hospital care have also risen. Daily hospital costs have 7 gone up from $9 .3 6 in 1946 to $32.23 in I9 6 0. Meanwhile, the average income of the aged remain fixed or have declined at the very time they face mounting medical costs mostly due to inflation. Of the 15*3 million indi­ viduals sixty-five and over in 1 95 9, fifty-five per cent had annual incomes of less than $1 ,0 0 0 and another twenty- three per cent received less than $2,0 0 0. In many cases g these people can not meet the high medical costs. A recent survey showed that in eight million families where the head was sixty-five or over, sixty-seven per cent had savings of $2,000 or less.^ Bearing these facts in mind, it is generally agreed that the nation faces a significant problem in seeing 7 'Campion, op. cit.. p. 3^4< ^Ibid. Q ^Thomas S. Cole, "Debate Over MedicareNation. Februarv 1 0, 1962, p. 1 3 3. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. to it that the aged receive the medical aid they need but find difficult to purchase or provide Several steps have been taken to meet this problem, A recent statement by Frederic W. Ecker, chairman of the Board of Metropolitan Life Insurance Company, pointed out that of an estimated nine million persons aged sixty-five and over, about fifty-three per cent were covered in 1961 by some form of voluntary health insuranceIn addition, the Kerr-Mills Act of I960 calls for two basic plans to be financed by Federal-State matching funds. Under the first, the states which elect to do so, can pay, as far as practica­ ble under local conditions, medical bills of persons sixty- five and over who are on public assistance rolls. The second plan enables co-operating states to furnish medical assistance to-individuals who are not recipients of old age assistance, but whose income and resources are insufficient to meet the cost of necessary medical services. Though the Kerr-Mills approach is available to all states, as of March, 1962, only twenty-three states and two territories had taken steps to implement it. Statistics show that from a theoretical ^^Campion, op. cit., p. 3^4° ^^Nation*s Business, op, cit., p. Ô9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. total of ten million people, less than 7 5 ,0 0 0 actually received aid under the second provision of the law. This is much less than one per cent. Yet, taking into consideration the advance made by these private and public efforts to care for the aged, many observers still feel that more must be done to permit all the aged to procure the medical services they require. House Bill 4222 introduced on February 13, 1961 by Representative Cecil King (D., Gal.) and Senate Bill 909 introduced by Senator Clinton P. Anderson (Do, N. Mex.) on the same day, is entitled; Health Insurance Benefits for the Aged: Title XVI to the Social Security Act. It has since been referred to as the King-Anderson Bill. Specifically this bill would cover all those individuals age sixty-five or over who are entitled to receive benefits under the Social Security System or the Railroad Retirement Plan — ■ a total of 14.2 million Americans.
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