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1970 Wis. L. Rev. 726 (1970)
The Impact of Medicaid

handle is hein.journals/wlr1970 and id is 744 raw text is: THE IMPACT OF MEDICAIDt
SYDNEY E. BERNARD*
EUGENE FEINGOLD* *
The Social Security Amendments of 19651 established two new
medical care programs: a program of Health Insurance for the
Aged, described in title XVIII;2 and one of Medical Assistance,
described in title XIX.8 The two programs, popularly known as
Medicare and Medicaid, respectively, are frequently confused
with one another. Medicare is a federal program which pays for
some specified health services for persons aged 65 and over. These
services are provided as a matter of right. Some are financed
through social insurance; others are financed jointly from general
revenues and by means of premiums paid by Medicare beneficiaries.
The program is nationally uniform, and is administered by the So-
cial Security Administration through private agencies, most com-
monly Blue Cross and Blue Shield plans.
Medicaid, on the other hand is a federal-state program which has
the potential of paying for all medical care expenses for those per-
sons, regardless of age, whose income and assets are low enough to
meet the eligibility requirements. It is financed jointly by the fed-
eral and state governments (in some cases with participation from
local government) from general revenues, and varies from state to
state. The medical Services Administration of the Department of
Health, Education, and Welfare is in charge of the program at the
national level. Administration at the state level is carried on by
state departments of welfare and health, which operate through
private agencies in some cases-again, usually Blue Cross and Blue
Shield.
In brief, then, Medicaid is a federal grant-in-aid program under
which the federal government pays the largest government share
of the cost of medical assistance programs established by the states
to replace and liberalize the provisions for payment of medical care
t This article is drawn from Medicaid and the States, by Professors
Feingold and Bernard, to be published by the Brookings Institution next
year. The views presented are those of the authors and are not presented
as the views of the trustees, officers, or other staff members of the Brook-
ings Institution.
* Professor of Social Work, University of Michigan. B.A., 1950, Uni-
versity of Michigan; M.S.W., 1952, University of Michigan; Ph.D., 1964,
Brandeis University.
* * Acting Chairman of the Department of Medical Care Organization,
School of Public Health, University of Michigan. A.B., 1952, Cornell Uni-
versity; A.M., 1958, Princeton University; Ph.D., 1960, Princeton University.
1 Act of July 30, 1965, Pub. L. No. 89-97, 79 STAT. 286.
2 Id. §§ 100-11, 79 STAT. 290-343.
8 Id. §§ 121-22, 201-08, 211, 221-22, 231, 79 STAT. 343-60.

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