Final answer:
Medicare, created in 1965, was the first national health insurance plan in the United States, providing health insurance to the elderly, whereas Medicaid was designed to help low-income individuals and the disabled.
Step-by-step explanation:
The first national health insurance plan in the United States was Medicare, established in 1965 as a federal system of health insurance for the elderly. Before its implementation, less than half of Americans over the age of sixty-five had medical insurance. The establishment of Medicare allowed seniors to choose between Plan A, which covered most hospital bills, or Plan B, similar to an employer’s health plan with the beneficiary paying small premiums while the government covered the majority of the costs. The initiation of Medicare aimed to make healthcare accessible to a population that was not being served by the private market due to high average healthcare costs associated with aging. Alongside Medicare, Medicaid was also approved, offering medical benefits to recipients of welfare and the disabled. Both programs represented critical steps in the development of the U.S. healthcare system, with Medicare addressing the needs of the elderly, and Medicaid assisting low-income individuals.