In the late 1950s, social security officials realized that a growing number of seniors were facing a huge crisis in their lives-lack of health insurance and coverage. The Social Security system during the 1950s was unable to protect seniors against the high medical costs. When people turned to private health insurance for help, all they could offer was higher premium costs for individuals prone to hospitalization and low incomes. President Lyndon Baines Johnson launched his Great Society program, its primary focus to aid in making American society a better place, hence the name. He targeted areas like employment, education, and medicine. Concerning medicine, it was difficult for many elderly citizens. "When the debate finally went to Congress in 1960, many proposals were brought forth by organizations such as American Hospital Association, American Medical Association, and the AFL-CIO." (Klunk SW. 1997 p. 39) Finally, after much debate on issues concerning health care, in July 1965, the House and Senate passed the bill which established Medicare, a social insurance program designed to provide all older adults with complete health care coverage at an affordable cost. .
Medicare insures for people 65 years of age or older payment for a basic program that includes inpatient diagnostic services, hospitalization, and post-hospital benefits in an extended care facility and at home. The program consists of Part A and Part B. Part A was designed to provide patients with hospitalization care, health care visits and post-hospital care; Part B of Medicare covers physician health services. In the years after 1965, further legislative laws were passed to provide seniors with health insurance protection. .
"During the years from 1965-1980, many extensions to Medicare were passed to provide all seniors aged 65 or older after attainment of residency or citizenship with hospital insurance and supplementary medical insurance benefits.