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Health Care Policy of the Democratic Party By Steve Hoenisch Last updated on July 23, 2004 Copyright 1996-2004 www.Criticism.Com This essay appears in The Encyclopedia of the American Democratic and Republican Parties, published by the International Encyclopedia Society. The encyclopedia won the Choice Outstanding Academic Book Award in 1997. Table of Contents 1 Early Proposals 2 Franklin D. Roosevelt's Social Security Bill 3 Truman Advocates for Legislation 4 Eisenhower Thwarts Compulsory Insurance 5 Kennedy's Social Welfare Platform 6 Lyndon B. Johnson's War on Poverty 7 Medicare and Medicaid Established 8 Reagan Attacks 9 Clinton's Plan 10 Rifts Lead to Other Proposals 11 Bibliography 12 Related 12.1 Democratic Party 12.2 Republican Party 13 Bestselling Books on the Democratic Party 1 Early ProposalsAlthough the early proposals for federal health care were
tendered by Republicans, health legislation soon became the
domain of Democrats, who increasingly encountered opposition from
Republicans weary of enlarging central government. With his
proposals to expand the Public Health Service in the 1920s,
Democratic Senator Joseph E. Ransdell opened the way for later
generations of Democrats to fight for augmenting the federal
government's role in health care. But these later generations of
Democrats, often composed of Northern, liberal, and pro-labor
congressman, found significant and often decisive resistance from
conservative Southern Democratic brethren.
Federal health care began in 1798 with an Act for Relief of
Sick and Disabled Seamen, which created the Marine Hospital
Service, the progenitor of the Public Health Service, the name
that the agency took following passage of the Public Health and
Marine Service Act of 1902. The bill was enacted after Republican
Senator John C. Spooner of Wisconsin asked for changes in the
public health service. But partisan politics over health care did
not take hold with full force until the beginning of 20th
century.
In 1926, Democratic Senator Ransdell of Louisiana, the
chairman of the Public Health Committee, introduced a bill to
create a national institute of health. The proposal, however,
languished in Congress for four years, encountering indifference
from many members of Congress and facing determined opposition
from Republican President Calvin Coolidge's Bureau of the Budget.
During 1928, the Ransdell bill was also being kicked around the
Senate, but Republican Senator Reed Smoot of Utah, an early
opponent of federal health care, prevented its passage.
Also in 1926, Republican Representative James S. Parker of
New York introduced a bill to expand the authority and services
of the Public Health Service. In 1928, the Parker Bill passed
both houses only to be vetoed by Republican President Calvin
Coolidge over the question of executive authority.
In 1930, both the Parker and Ransdell Acts became law,
determining the direction of the Public Health Service for the
next 40 years. The Parker Act, officially known as the Public
Health Service Amendments of 1930, enhanced the authority and
operations of the service. The Ransdell Act was officially known
as the National Institute of Health Act. The passage of the acts
helped open the door for the more extensive health care proposals
that were to follow.
In 1937, several Democrats teamed up to pass an act
establishing and funding a cancer institute. The National Cancer
Institute Act, which passed both houses unanimously, was proposed
by Representatives Maury Maverich, a Texas Democrat, and Warren
G. Magnuson, a Washington Democrat, as well as Senator Homer T.
Bone, also a Washington Democrat.
2 Franklin D. Roosevelt's Social Security BillDemocratic President Franklin D. Roosevelt, with the backing
of other Democrats in his administration, brought up the subject
of a government health insurance program when he proposed his
social security bill of 1935. But Roosevelt, fearing that such a
controversial issue could endanger the overall social security
bill and his chances of reelection, let the issue wither. Despite
the lobbying efforts of some progressive Democrats for an
expansion of federal health services and compulsory insurance,
Roosevelt's New Deal included few other attempts to significantly
expand federal health care, though it did manage to get aid for
maternal and children's health and matching grants for state
health departments. Yet it was Roosevelt's vision of a government
health insurance program that formed the progenitor of the 1965
Medicare Act.
Further into the years of the New Deal, a rift emerged on
health care within elected members of the Democratic Party.
Between 1939 and 1943, three Northern Democrats -- Senators
Robert F. Wagner of New York and James E. Murray of Montana and
Representative John D. Dingell of Michigan -- repeatedly
introduced measures for national health insurance. The bills,
however, did not have strong support from the Roosevelt
administration, which continued to be fearful that such
controversial legislation could doom other aspects of its agenda.
But the absence of administrative backing was not the bills'
demise. Rather, they were blocked by conservative Southern
Democrats, who had formed a strong coalition with Republicans.
The next battle over health care came in 1946, when Democratic
Senators Lister Hill of Alabama and Harold H. Burton of Ohio
introduced a bill to help defray the costs of hospital
construction.
Senator Hill dedicated much of his Congressional career to
proposing and fighting for health care legislation. As chairman
of the Senate Committee on Labor and Public Welfare, Hill,
working with Democratic Representative John E. Fogarty of Rhode
Island, persuaded Congress to expand the National Institutes of
Health into a comprehensive facility for medical research. Along
with Representative J. Percy Priest, Democrat of Tennessee, and
Senator Claude Pepper, Democrat of Florida, Hill was instrumental
in moving the National Mental Health Act of 1946 through
Congress.
But the influential Senator Robert A. Taft, an Ohio
Republican, frowned upon the Hill-Burton bill because, he
believed, it allowed for too much federal control. In order to
gain his backing, Senator Taft wanted the measure to contain
assurances of states rights and local control, money set aside
according to state assessments of need, and matching funds for
local hospital boards.
Within the Democratic Party, it was significant that Senator
Hill, a Southerner, had introduced the bill. The measure appealed
to many Southern conservatives in Congress, both Democrat and
Republican, because it promised to funnel aid to their states.
Even Senator Taft was eventually persuaded to back the bill by a
funding formula that awarded the largest sums to the poorest
states. The Hill-Burton Act, officially known as the Hospital
Survey and Construction Act, became law in 1946.
3 Truman Advocates for LegislationDemocratic President Harry S. Truman was a strong advocate of
health care legislation. In his state of the Union speech of
1948, Truman announced that his goal was "to enact a
comprehensive insurance system which would remove the money
barrier between illness and therapy." For Truman, national health
insurance was an issue of equality.
In early 1949, President Truman urged Congress to act on
medical insurance. Soon thereafter, a bill drafted by Democratic
Senators Wagner and Murray along with Democratic Representative
Dingell was again presented to Congress, as it had been during
previous years, when it usually met with Congressional refusal to
hold hearings on it. The fate of the 1949 bill was much the same.
Despite backing from President Truman, the bill met with strong
opposition from a coalition of anti-Truman conservative Southern
Democrats. They combined forces with Republicans to successfully
block the insurance proposal; it was never reported out of
committee.
Despite the dashed hopes for President Truman's insurance
legislation, a group of Democrats teamed up with a Republican to
gain passage of two acts that provided funding for medical
research. Surgeon General Leonard Scheele joined Democrats Mary
Lasker, Murray, and Pepper as well as Republican H. Styles
Bridges of New Hampshire to pass the National Heart Institute Act
in 1948 and the Omnibus Medical Research Act of 1950, which
established new institutes for health research. The acts are
indicative of Congress' strong bipartisan support at the time for
medical research, which continued through the 1950s, resulting in
increased funding for the National Institutes of Health in 1957
and 1958.
In 1950, '51, and '52, President Truman continued to push for
compulsory health insurance. But the prospects for passage
appeared bleak after 1949, as even Truman's advisers
acknowledged, especially after the elections of 1950 reduced the
Democrats' House majority from 263-171 to 235-199 and scarcely
allowed them to maintain control of the Senate.
4 Eisenhower Thwarts Compulsory InsuranceThe 1952 election that installed Republican Dwight D.
Eisenhower as president shattered all possibility of a Northern
Democrat-supported compulsory insurance bill. In fact, under
President Eisenhower, no substantial medical bill had a chance.
Even after the Democrat Party regained control of Congress in
1954, the Democrats still lacked enough votes to ensure a
favorable majority.
The year 1958 rekindled the debate over a national health
insurance program. During that year, Aime J. Forand, a Rhode
Island Democrat and a member of the House Ways and Means
Committee, where at least one earlier proposal for national
health insurance had died a quiet death, reintroduced an
insurance bill. During the 1950s, statistics began to show that
the aged had health and financial problems. Despite the
statistics, the Forand Bill drew opposition from conservative
members of Congress, including some Democrats, who argued that it
was regressive and limited. They objected that it would not offer
substantial assistance to those who needed it most while covering
those who did not. Opponents further argued that Americans are
not poor enough to warrant compulsory government health
insurance. They added that the bill would encroach on states'
rights, a oft-used objection by Republicans. Many Southern
Democrats, though, also held states' rights in high regard, one
reason they often found themselves voting with Republicans on
issues of social welfare policy. Although Forand's bill was
rejected by the House Ways and Means Committee in 1959 by a 17-8
vote, it did serve to revive the battle over federal health care.
In the wake of the Forand Bill, Senator Robert S. Kerr, an
Oklahoma Democrat, and Democratic Representative Wilbur D. Mills
of Arkansas, the powerful chairman of the Ways and Means
Committee, sponsored and gained passage of a compromise bill in
1960 that gave states matching funds to help the needy.
5 Kennedy's Social Welfare PlatformAn increasingly significant federal role in health care
emerged with the dawn of the 1960s and the presidential election
of Democrat John F. Kennedy, who campaigned on a strong social
welfare platform. The Democratic Party platform of 1960 included
a section on health that proposed to use the Social Security
system to cover the hospital bills of those in need and to make
it available to all retired persons without a means test.
In February 1961, true to his party's campaign promises,
President Kennedy called for an extension of Social Security
benefits to cover hospital and nursing home costs but not
surgical expenses for those over 65. Senator Clinton P. Anderson,
a New Mexico Democrat who was a high-ranking member of the
Finance Committee, and Representative Cecil R. King, a California
Democrat who sat on the Ways and Means Committee, introduced the
president's proposal as the King-Anderson Bill.
The bill, however, lacked bipartisan backing, and
Representative Mills, though a Democrat, was determined to
consider in the crucial Ways and Means Committee only a proposal
that had bipartisan support. Besides, the Kerr-Mills program was
already in place, and it was unlikely they would cave in to the
president's plans. Of course, President Kennedy could have chosen
to pressure Chairman Mills into supporting the King-Anderson
bill, but Medicare was only one of the president's priorities. As
Mills had agreed to introduce several of the president's other
measures, Kennedy could not demand Mills' support for the health
bill. Democratic Representative Sam Rayburn of Texas, the Speaker
of the House, however, did support the president's proposal, but
that support would not be enough to overcome the influential
Mills.
Besides Mills, there was another significant barrier to
passage of the King-Anderson Bill. It was a coalition of five
other Southern Democrats on the House Ways and Means Committee
who, together with Republicans, formed a bloc strong enough to
override the favorable votes of the committee's urban, pro-labor
Democrats. The six "swing" Southern Democrats on the committee
who opposed or were likely to oppose the Medicare bill in 1961
were Mills, a publicly announced opponent; Burr Harrison of
Virginia, a conservative; John Watts of Kentucky; Frank Ikard of
Texas, who had conservative tendencies; A. Sydney Herlong of
Florida, who also tended to vote conservatively; and
Representative Frazier, another conservative.
The aggregation of these factors -- opposition from the
committee's Southern Democrats, especially Chairman Mills,
President Kennedy's focus on other priorities, and the fact that
the Kerr-Mills program was already in place -- effectively killed
the Medicare bill without a formal committee vote. But the battle
for a national program of health insurance was not over yet; it
was only postponed.
6 Lyndon B. Johnson's War on PovertyFollowing the assassination of President Kennedy, the
ascendancy of Democrat Lyndon B. Johnson to the White House
brought a liberal administration committed to social reforms as
part of a "War on Poverty." The Democratic Party's platform in
1964 contained a demand for including hospital care for older
Americans in the Social Security program. More specifically,
President Johnson's dramatic victory over Republican candidate
Senator Barry Goldwater of Arizona could be seen as a popular
mandate for Medicare, for Johnson had included a strong Medicare
plank in his campaign while Goldwater had not.
The 1964 Democratic landslide also placed in Congress liberal
Democrats who not only firmly supported the administration but
also were interested in health legislation, greatly improving the
prospects for a Medicare bill.
More important, the composition of the House Ways and Means
Committee had changed during the preceding elections; three of
the conservative Southern Democrats who had opposed Medicare in
1961 had been replaced by fellow Southern Democrats willing to
back the King-Anderson bill. Richard Fulton, Pat Jennings, and
Clark Thompson supplanted Frazier, Harrison, and Ikard.
Moreover, following the 1964 election, the committee's ratio was
changed to reflect the strength of the parties in the House as a
whole, increasing the number of Democrats on the committee. Thus,
in 1965, the Ways and Means Committee shifted from 15 Democrats
and 10 Republicans to 17 Democrats and 8 Republicans, further
ensuring a bloc favorable to Medicare. The fate of the
reintroduced King-Anderson bill had changed from being a
possibility to a certainty. The bill continued to include
coverage of the aged, limited hospitalization and nursing home
insurance benefits, and social security financing.
Republicans reacted to the reintroduction of the King-Anderson
measure by starting to talk about alternative programs that they
saw as more positive. The Republicans put forth the following
arguments as grounds for opposing the King-Anderson Bill in favor
of an alternative: It contained inadequate benefits, with too
many exclusions and limits; it was too costly; and it did not
distinguish between the poor and wealthy among the aged. To
address these concerns, Republican Representative John W. Byrnes
of Wisconsin, the ranking Republican on the Ways and Means
Committee, proposed a bill for a voluntary system. Byrnes' bill
was also driven by the desires of Republicans on the Ways and
Means Committee to prevent the Democrats from taking exclusive
credit for health insurance legislation.
Representative Mills, foreseeing that passage of the King-Anderson Bill was now inevitable, sought to build bipartisan
consensus for it. In a brilliant legislative move that at once
strengthened the proposal and brought Republican backing to it,
Mills moved to draft legislation combining the King-Anderson
hospital insurance bill with Byrnes' voluntary plan and an
expanded state-administered Kerr-Mills program for all medically
needy people. Thus Mills' succeeded in winning bipartisan support
for his combination bill because it appealed to the Republicans,
many of whom wanted, at most, a voluntary plan.
And Mills continued to guide the legislation through the House
with expertise and diplomacy. "Throughout" the drafting of the
combination bill, Theodore R. Marmor writes in The
Politics of Medicare, "Mills left no doubt that he was
first among equals--he acted as the conciliator, the negotiator,
the manager of the bill, always willing to praise others, but
guiding the `marking up' of H.R. 6675 through persuasion,
entreaty, authoritative expertise, and control of the agenda."
The combination measure became known as the Mills bill, and when
the House convened on April 8 to vote on it, Mills received a
standing ovation.
Yet Despite Mills' labors, in October 1964, a deadlock over
the entire social security bill again postponed the possibility
of Medicare until the following year.
7 Medicare and Medicaid EstablishedIn 1965, the Social Security Amendments of 1965 passed both
houses and were signed into law by Democratic President Johnson,
establishing Medicare and Medicaid and ending with victory for
the Democratic Party a long, bitter fight for health insurance
that began with the Roosevelt administration and spanned the
administrations of Presidents Truman and Kennedy and part of
Johnson's. Perhaps the most far-reaching health care legislation
passed in U.S. history, the amendments included a hospital
insurance program for Social Security recipients over 65, funded
from payroll taxes, and voluntary medical service insurance for
the same group, funding by small premiums and general revenues.
It also expanded the Kerr-Mills program for all medically needy
people.
The battle of a federal health insurance program, however, did
not end with the passage of Medicare and Medicaid. The battle
merely shifted -- to what the appropriate level of funding for
such programs should be. The origins of Medicare during the 1960s
also shaped the dispute over national health insurance in the
1970s, an era during which health policy continued to have strong
appeal in Congress. Senator Edward M. Kennedy, a Massachusetts
Democrat, and Representative Paul G. Rogers, a Florida Democrat,
played key leadership roles on health legislation. Kennedy in
particular has been the leading congressional advocate during the
past quarter century for a universal health care system. In the
1970s, Senator Kennedy focused his efforts on passing a universal
health care measure, but his attempts failed because a compromise
could not be reached on the issue.
In 1971, President Nixon suggested a plan to cut health care
costs and to spur development of health maintenance organizations
for providing care for Medicare and Medicaid recipients. Although
the plan eventually lost favor with the White House, it was
embraced by several influential Congressional Republicans and
Democrats, notably Senator Kennedy and Representative Rogers.
Working with several key Republicans in Congress, they adopted
Nixon's plan. After three years of legislative effort, the Health
Maintenance Organization Act of 1973 established an experimental
program to underwrite HMO development, becoming a forerunner to
the debate over stimulating HMO development and use during the
1990s.
In 1972, President Nixon announced that he intended to end
federal backing for the Hill-Burton Act and several other
programs and to cut funding for other programs. He also said he
would revoke funds already appropriated to certain health care
programs. Congress reacted with anger, passing amendments to
secure appropriations. Congress eventually secured the grant
programs at least temporarily in the Special Health Revenue
Sharing Act of 1975, passed over Republican President Ford's
veto. Many members of Congress, resenting Ford's tactics, backed
the congressional health care leaders.
The late 1970s saw the election of Democrat Jimmy Carter to
the presidency and a simultaneous respite from the health care
debate. During the 1970s, however, many in Congress, particularly
Republicans, became increasingly concerned over the rising costs
of health care and voiced those concerns during hearings.
8 Reagan AttacksRepublican President Ronald Reagan, soon after his election in
1981, launched an assault on the federal health care system,
announcing that he planned to consolidate all 26 the health
services programs into two block grants. He also announced plans
to slash spending on health by 25 percent. The president's
announcement set off a battle in Congress, with Senator Kennedy,
the Massachusetts Democrat, and Representative Henry A. Waxman, a
California Democrat who was the new chairman of the House Health
Subcommittee, leading the charge to retain federal health
programs.
Despite formidable opposition from both conservative
Republicans and conservative Democrats, Representative Waxman
managed to negotiate three block grants and to retain several
programs as categorical grants in the Omnibus Budget
Reconciliation Act of 1981. But in the end the conservatives had
won. The act reduced funding for all health services programs,
collapsed funding for many categorical grant programs into block
grants to states, and increased local and state governance over
remaining programs.
One of the few victories during the conservative era that
spanned the twelve years of the Reagan and Bush administrations
came in 1991, when a coalition of three congresswoman joined
forces to pass the Women's Health and Equity Act. Senator Barbara
Mikulski, a Maryland Democrat, and Representative Patricia
Schroeder, an influential Colorado Democrat, were instrumental in
securing passage of the bill, which created an office for
research on women's health at the National Institutes of Health.
9 Clinton's PlanThe election of Democratic President Bill Clinton returned
health care to the fore of national politics in 1992. Clinton ran
on a plank of reforming the nation's health care system. Once
elected, Clinton's goal soon became universal coverage, arguing
that it was necessitated by rising costs of care and large
numbers without insurance. True to his campaign promise, he
unveiled a health care reform proposal in a speech to Congress
and the nation on Sept. 22, 1993, saying that Hilary Rodham
Clinton had consulted with government leaders of both parties and
that many of the plan's principles had been embraced by
Republicans as well as Democrats. He proposed a concept first
conveyed by Republican President Richard M. Nixon -- that every
employer and individual would be asked to contribute to health
care.
Clinton's proposal would require that all legal residents be
insured by choosing from at least three plans providing standard
medical benefits: an HMO, a fee-for-service, or a combination
plan. The plans would be administered by large corporate
employers or by regional purchasing alliances. Employers would
pay 80 percent of the insurance cost while individuals would pay
up to 20 percent. There would be subsidies for small, low-wage
employers and poor individuals. Clinton maintained that his plan
would deliver security, simplicity, savings, and quality while
retaining freedom of choice.
Also among the principles of Clinton's plan was an expansion
of states' responsibilities. Other Democrats, however, have been
distrustful of states' abilities to ensure high-quality health
care. For example, Democratic Representatives Pete Stark of
California and Waxman have written during the 1990s detailed laws
outlining states' responsibilities to help low-income earners,
nursing home residents, pregnant women, and children.
10 Rifts Lead to Other ProposalsDespite Clinton's assurances of support for his plan from
Democrats and Republicans alike, rifts soon developed not only
between the two parties but also -- and significantly -- within
the Democratic Party, spawning three separate Democratic
proposals, including Clinton's, and three additional Republican
ones.
A major split within the Democratic Party was between the
backers of the administration plan and backers of a single-payer
system, meaning a government-run universal health care system
like Canada's. The split was significant because many analysts
believed that for the Democrats to pass a plan, they needed to
include those committed to extensive reform.
Backers of the single-payer system -- generally liberal
Democrats -- argued against Clinton's plan on the grounds that
managed competition was untested, overly complex, and possibly
inefficient compared with a single-payer system. Many liberal
Democrats also feared that money would be diverted from Medicaid
and Medicare to help pay for Clinton's plan.
The single-payer system was proposed by Representative Jim
McDermott, a Washington Democrat who has been pushing for a
government-run program for some time. McDermott's plan would give
all legal residents access to a standard medical benefits
package, administered by the states, with the government paying
the bills. It would cover all medically necessary procedures. The
program would be funded through payroll taxes on employers;
individuals would pay nothing. Supporters of McDermott's plan
included Representative Stark, the California Democrat who was
chairman of the House Ways and Means Subcommittee on Health.
Among the 60 other advocates of a single-payer system in Congress
is Democratic Senator Paul Wellstone of Minnesota, a cosponsor of
the legislation. Wellstone and the other backers argue that
Canada's system, in which federal and provincial governments
share costs, is a proven and generally successful way of
providing citizens with fairly high-quality care. They also argue
that taxpayers would be willing to back a single-payer system
once they realize that it would replace all other health
insurance costs, adding that managed competition will actually
prove more burdensome for consumers. The proposal for the single-payer system, however, led many in Congress to raise questions
about rationing. Conservative Democrats and Republicans alike
consider a single-payer system akin to socialized medicine.
A third plan was proposed by a conservative Democrat,
Representative Jim Cooper of Tennessee. It would establish
purchasing cooperatives to reduce the cost of insurance and make
it more affordable. The government would pay premiums of those
below the poverty line and subsidize others in need. Cooper
believed the virtues of his more conservative plan lay in less
federal bureaucracy and control. Conservative Democrats had
criticized Clinton's plan as containing excessive controls. They
also had concerns over requiring small businesses to buy
insurance for their employees. Cooper's alternative would require
no payments by employers.
But along with the other plans, Clinton's initiative died in
Congress, unable to survive challenges from the strong Republican
minority, which had garnered frequent support from conservative
Democrats. The nearly century-old split in the Democratic Party
between conservatives and liberals that had for so long
undermined Medicare and stalled other federal health care
proposals by liberal Democrats had struck again. Indeed, the
death of Clinton's plan left unresolved the issue of health care
and extent of government involvement, as it has remained since
the early days of the 20th Century.
11 BibliographyBacon, Donald C.; Davidson, Roger H.; Keller, Morton; editors.
The Encyclopedia of the United States Congress, New York: Simon &
Schuster, 1995.
Eckholm, Erik, editor. Solving America's Health-Care Crisis: A
Guide to Understanding the Greatest Threat to Your Family's
Economic Security, New York: Times Books, 1993.
Johnson, Donald Bruce. National Party Platforms: Volume II,
1960-1976, Urbana, Ill.: University of Illinois Press, 1978.
Maisel, L. Sandy, editor. Political Parties and Elections in
the United States: An Encyclopedia, New York: Garland Publishing
Inc., 1991.
Marmor, Theodore R. The Politics of Medicare, Chicago: Aldine
Publishing Co., 1973.
Porter, Kirk H. and Johnson, Donald Bruce. National
Party Platforms: 1840-1964, Urbana, Ill.: University
of Illinois Press, 1966.
Stevens, Robert and Stevens, Rosemary. Welfare Medicine in
America: A Case Study in Medicaid, New York: Macmillan Publishing
Co., 1974.
The New York Times, Health Care: Clinton's Plan and the
Alternatives. New York: Sunday, October 17, 1993. Page 22.
12 Related
See The Nation magazine for clear-headed political commentary on current affairs and policy.
13 Bestselling Books on the Democratic Party
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