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28 Soc. Sec. Bull. 3 (1965)
Social Security Amendments of 1965: Summary and Legislative History

handle is hein.journals/ssbul28 and id is 373 raw text is: Social Security Amendments of 1965: Summary and Legislative Hist WITH THE SIGNING on July 30, 1965, of P.R. 6675, the Social Security Amendments of 1965 became law. The historic legislation, Public Law 89-97, establishes two coordinated health insurance programs for the aged and makes a number of substanial improvements in the existing old-age, survivors, and disability insur- ance (OASDI) program and other programs under the Social Security Act. The most significant changes in the social security system are the following: 1. Establishment of two related national health insurance programs for the aged-(a) a basic plan affording protection against the costs of hospital and related care, and (b) a voluntary supplementary plan covering payments for phy- sicians' services and other medical and health services. 2. A 7-percent increase in OASDI benefits. 3. Liberalization of the definition of disability. 4. Liberalization of the retirement test. 5. Payment of benefits to eligible children aged 18-21 who are attending school. 6. Payment of benefits to widows at age 60 on an actuarially reduced basis. 7. Coverage of self-employed physicians. 8. Coverage of tips as wages. 9. Liberalization of insured-status require- ments for persons already aged 72 or over. 10. Increase to $6,600 in the contribution and benefit base. 11. Increase in the contribution rate schedule. The amendments include the following import- ant changes in the public assistance titles of the Social Security Act.' * Mr. Cohen is Under Secretary of Health, Education, anti Welfare and Mr. Ball is the Commissioner of Social Security. For a brief summniary of the amendments affecting public assistance and the znaternal and child health and child welfare prograns, see pages 18-21. Welfare is Reriemc (Welfare Administration), August 1965, car- ries a legislative history and a fuller description of the wvelfare provisions of 1'. L. 89-97. BY WILBUR J. COHEN AND ROBERT M. BALL* 1. Establishment, under a new title, of a pro- gram to provide medical assistance for needy or medically needy aged, blind, or disabled persons and dependent children. 2. Increased Federal sharing in assistance payments to the aged, the blind, the disabled, and dependent children. 3. Removal of limitations on Federal, partici- pation in assistance payments with respect to aged persons in tuberculosis and mental disease hospitals under certain conditions. 4. New or increased amounts of income received by assistance recipients that may be disregarded in determining need. The major changes in the maternal and child health and child welfare services are the follow- ing: 1. Increase in the annual authorizations of Federal funds for the three programs. 2. Authorization of special project grants to provide comprehensive health care for children of low-income families. Background and Legislative History of the Insurance Provisions The Social Security Amendments of 1965 em- body the most far-reaching social security legis- lation to be enacted since the original Social Security Act was passed 30 years earlier. The law closes one of the major gaps in the economic security of the elderly by providing protection against the high costs of hospital and medical care, and it brings the existing OASDI program more in line with current economic and social conditions. Bills to provide hospital insurance and related health benefits as part of the social security sys- tem have been introduced in every Congress since 1952. The proposals did not receive active congressional consideration, however, until 1958, BULLETIN, SEPTEMBER 1963

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