Final answer:
Medicare was created in 1965 as a two-part program for the elderly, offering hospital and medical insurance. Medicaid was established the same year as a welfare program for the poor. Both programs are key components of the U.S. social safety net, providing health coverage to vulnerable populations.
Step-by-step explanation:
Medicare was created as a two-part program for the elderly under the Social Security Act of 1965. This program was part of President Lyndon B. Johnson's "War on Poverty", which aimed to improve the lives of lower-income Americans. The original Medicare plan allowed seniors to choose either Plan A, which covered hospital bills, or Plan B, which operated similar to an employer's health plan.
Medicaid was also established in 1965 as a welfare program for the poor, providing medical insurance for low-income individuals, including families with children, the elderly, and the disabled. This program is jointly administered by the federal government and states, with each state responsible for setting its own eligibility requirements and benefits, leading to variations in coverage.
Over time, Medicare has expanded to include four parts, with varying methods of funding: Hospital Insurance, Supplementary Medical Insurance, Medicare Advantage, and the Part D prescription drug benefits. Likewise, Medicaid has evolved to cover a significant portion of healthcare for low-income mothers and the costs associated with eldercare, like nursing homes.