Medicare, a program of health insurance, was a policy supported by John F. Kennedy during the 1960 presidential campaign. The issue was popular with the Trade Union movement but was vigorously opposed by private insurance companies. The American Medical Association were also against the measure, describing the measure as an example of socialism. However, Kennedy was unable to persuade Congress to pass the measure.

After the assassination of Kennedy, Lyndon Baines Johnson, took over the cause and it became law on 30th July, 1965. Added to the Social Security Act, Medicare provided health coverage for persons over 65 years of age. The insurance was financed by increases in the social security payroll tax. Medicare offered basic hospital care for 60 days as well as the payment of doctor's fees.