But on the other hand it did give the Nation a wide range of programs to meet its needs. .
If you study the history of Social Security, you could not help but be very familiar with how our government's checks and balances work. The bill started with the executive branch taking action first and introducing the bill. Then it was proposed to the legislative branch and they made the necessary provisions, the president then signs the final draft of the law and it becomes law. You think it would end there, it's a law so now move on to the next item on the agenda. Not the case with Social Security, it has gone through many significant ratifications, that now the program looks nothing like the original. In one way or another each President that has held office has had to deal with the issue of Social security. For example in 1965 President Johnson signed an amendment into law that created Medicare. This program provides hospital insurance to the elderly. Medicare also gives them supplement medical insurance for other medical needs. In 1983 during the Reagan administration congress legislated a gradual increase in the retirement age, raising it from 65 to 67 for those people born in 1960 or later. .
In this section I will talk about the different segments of the Social Security and how they are funded. It is sectioned into three areas, OASDI, Medical hospital insurance, and Medicare Supplementary Medical Insurance or SMI. The OASDI program provides benefits for the elderly and the disabled, and also for survivors of deceased workers. Cash benefits for the OASDI are financed by payroll taxes placed on employees, their employers, and the self employed. The hospital insurance portion of Medicare is for the most part financed by payroll taxes too. The SMI part of Medicare applies to the physicians services. This part of the program is financed in part by monthly contributions from aged and disabled persons that are enrolled in the program, and the other part by federal general revenues.
