History_Of_Medicaid_Program

History Of Medicaid Program History and Development of Social Welfare System (Medicaid) The severe Depression of the 1930’s made Federal action a necessity, as neither the States and the local communities, nor private charities had the financial resources to cope with the growing need among the American people. Beginning in 1932, the Federal Government first made loans, then grants, to States, to pay for direct relief and work relief. After that, special Federal emergency relief and public works programs were started. In 1935, President Franklin D. Roosevelt proposed to Congress economic security legislation embodying the recommendations of a specially created Committee on Economic Security. There followed the passage of the Social Security Act, signed into law August 14, 1935. This law established two social insurance programs on a national scale to help meet the risks of old age and unemployment: a Federal system of old-age benefits for retired workers who had been employed in industry and commerce, and a Federal- State system of unemployment insurance. The choice of old age and unemployment as the risks to be covered by social insurance was a natural development, since the Depression had wiped out much of the lifetime savings of the aged and reduced opportunities for gainful employment. The Act also provided Federal grants-in-aid to the States for the federal, programs, states, social, security, assistance, program, medical, medicaid, insurance, benefits, legislation, services, provided, persons, income, grants, act, unemployment, under, old-age, law, families, children, age, whose, state, special, rehabilitation, recipients, public, poverty, older, needy