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1937 Social Security Act

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1937 Social Security Act

The Social Security Act is a law that began a change in American health and wealth system. The Social Security Act was set into motion by President Franklin D. Roosevelt on August 14, 1935 (DeWitt, 1999). In 1935, the SSA (Social Security Act) was originally created as a retirement plan (UNKNOWN, 2009); it has evolved drastically since its original proposal. “The Act was drafted during President Franklin D. Roosevelt's first term by the President's Committee on Economic Security, under Frances Perkins, and passed by Congress as part of the New Deal. The Act was an attempt to limit what were seen as dangers in the modern American life, including old age, poverty, unemployment, and the burdens of widows and fatherless children. By signing this Act on August 14, 1935, President Roosevelt became the first president to advocate federal assistance for the elderly.” (HISTORY OF SOCIAL SECURITY IN THE UNITED STATES, 2016)
Social Security Act was created for a multitude of reasons, to name a few: poverty among senior citizens, the stock market crash in 1929, and also allowing older employees to retire. Retiring employees actually caused the unemployment rate to decrease because younger employees were filing the open positions. The SSA was the first of many changes that influence today’s healthcare system. Social Security is now available to every US citizen. It helps the retired, disabled, and many more. It has become an intricate part of the healthcare system, specifically in reference to the evolution that brought around Medicare and Medicaid. These are two major contributors to today’s society. In 1959 the poverty rate among elderly patients was around thirty-five percent, today it is reduced to around ten percent. Poverty reduction effects HealthCare because more patients can afford their health needs. When someone can afford to pay their Deductibles and Co-Pays that prompts more frequent visits, which in turn, generates revenue for healthcare providers and establishments.
The Social Secirty Act has evolved in the last 81 years. As society evolves so will the HealthCare system, but it all began with President Franklin D. Roosevelt and the 1937 Social Security Act.

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