media.laits.utexas.edu:8080/.../gov310_topic14.8.mp4

Now, one of the key examples that I
talked about in terms of direct spending

is that of Medicare. So
what exactly is Medicare?

So here's a real quick
video to discuss Medicare.

>> In the depression, the elderly were quite
dependent on their sons and daughters,

and their sons and daughters
were out of jobs.

>> And the principle problem
was medical care costs.

Not that people couldn't get good care,
but it was that they could not afford it,

particularly they couldn't
afford the hospital costs.

>> There wasn't much of an
argument about the need.

The argument was what to do about it.

[Jazz rock]

>> They thought it would help elderly
people in the south, well what happened was

only 32 states had adopted it.

>> And what we showed very clearly
was only half the aged had coverage

and most of it was very,
very poor coverage.

[Lyndon Johnson] Our older people are
three times as often to be hospitalized

but their income is less than
half that of people under 65.

>> One of the traditional methods of imposing
socialism has been by way of medicine.

It's very easy to disguise a medical
program as a humanitarian project.

[Lyndon Johnson] We wanted the world to
know that we haven't forgotten who is

the real daddy of Medicare.

[laughter]

[Jazz Rock]

>> The social security district offices
were kept open into the evenings

for people who were still at work.

>> I will submit legislation shortly

to help free the elderly from the
fear of catastrophic illness.

>> [yelling] He's supposed to represent

the people, not himself.

>> Once senior's annual drug costs exceed
$2,250 they fall into the so-called,

"Doughnut Hole."

>> Now that the plan is in place,
39 million have signed up for it,

drug costs are less than anticipated.

>> We are done.

Beginning next year, preventive care,
including annual physicals, wellness exams,

and tests like mammograms will
be free for seniors as well.

>> A lot of care was given that

would never have been given if
it hadn't been for Medicare.

>> Alright, so you see that discussion

of Medicare and kind of the
advancement of Medicare. Now

one thing's that important to note is
that House Bill 2 or House Resolution #2,

which was passed and signed into law,
actually does a overhaul in regards

to Medicare and also
expands the CHIP program.

Talking about the Child Health Insurance
Program which has been reauthorized.

This is one of the things that needs
to be reauthorized every few years,

CHIP does, but with Medicare there's
been issues about payment of doctors

and specifically, really addressing
quality standards and so you're getting

actually paid for quality as
opposed to paid for performance.

With the idea being that doctors will
respond in terms of taking better care,

making less mistakes when they're
being paid by quality as opposed to

being paid by performance.