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Created in 1965, Medicaid is a public insurance program that provides health coverage to low-income families and individuals, including children, parents, pregnant women, seniors, and people with disabilities; it is funded jointly by the federal government and the states.
Medicare is federal health insurance for anyone age 65 and older, and some people under 65 with certain disabilities or conditions. Medicaid is a joint federal and state program that gives health coverage to some people with limited income and resources.
In 2020, 73% of the 12.5 million people who were enrolled in both Medicare and Medicaid were eligible for full Medicaid benefits, such as long-term services and supports. The vast majority (87%) had an income of less than $20,000, and nearly half (49%) were people of color.
On July 30, 1965, President Lyndon B. Johnson signed the Medicare and Medicaid Act, also known as the Social Security Amendments of 1965, into law. It established Medicare, a health insurance program for the elderly, and Medicaid, a health insurance program for people with limited income.
Medicare is an important public health insurance scheme for U.S. adults aged 65 years and over. As of 2022, approximately 18.7 percent of the U.S. population was covered by Medicare, an increase from the previous year.
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The Medicare program was signed into law in 1965 to provide health coverage and increased financial security for older Americans who were not well served in an insurance market characterized by employment-linked group coverage.
As a result, policymakers attention quickly turned to reforms that would reign in government spending on health care (though decisive action was slower to take hold). Evidence suggests that Medicare and Medicaid successfully enhanced access to medical care for low-income and elderly Americans (Davis and Schoen, 1978).
The historic legislation, Public Law 89-97, establishes two coordinated health insurance programs for the aged and makes a number of substantial improvements in the existing old-age, survivors, and disabilit,y insur- ance (OASDI) program and other programs under the Social Securit,y act.

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