Many Parallels Between The Social Security Act And The ACA

Last summer I visited the FDR house and museum in Hyde Park NY. It was fascinating. In the museum there is an entire exhibit devoted to the Social Security Act of 1935, perhaps FDR's most significant domestic achievement. Some of the history of that act; following the 1934 midterm elections that gave the Democratic party more than a 60% majority in both houses of congress, FDR introduced the Social Security Act. That act included more than what we now knows as Social Security. It also included unemployment compensation to workers laid off through no fault of their own and direct cash assistance to those in the most need: widows, orphans, the blind, the aged, and families with dependent children. Those programs became the basis of our system of public welfare that exists to this day.  

Almost immediately the Republicans labeled the Social Security Act as socialism and worse. Some said that passage of that act would destroy the very foundation of the United States. But the act passed handily with no Republican votes. The GOP made repealing the Social Security Act a corner stone of their 1936 presidential campaign and believed that there existed a "silent majority" of voters out there who would see the light against "creeping socialism" coming from FDR. 

Of course we all know the result of the 1936 presidential election. FDR won in a historic landslide and the Democratic Party increased their membership in congress nearing a 2/3 majority. The next hope of the opponents of the Social Security Act was that the Supreme Court would see the light and declare the act unconstitutional. In 1937 the Supreme Court was dominated by Republican appointed conservative justices and the court had already thrown out some of FDR's New Deal legislation. FDR really feared that this conservative Supreme Court would declare the Social Security Act as unconstitutional.   

Thus FDR thought he could "pack the court" by appointing new justices for each justice over 70 years old. Of course this "court packing" scheme backfired and handed FDR a stinging defeat. But some justices read the message and retired. That allowed FDR to appoint new justices that would look more favorably on the Social Security Act. The court upheld the Social Security Act as constitutional pretty much on the same grounds as the Supreme Court upheld the ACA seventy five years later.  

While I was reading that, it was eerily familiar. Substitute the PPACA or "Obamacare" for the Social Security Act and 2012 for 1936 (with a different outcome) and it reads like today's news.  

Of course now Social Security is perhaps the most popular government program and any elected official who proposes any cuts to social security is surely headed for defeat in their next election. Witness the recent battle over using the "chained CPI" to determine annual cost of living increases in social security benefits. A large outcry from seniors forced the president to back off that proposal and many in congress to do likewise. Now it seems that the "chained CPI" is dead in the water like GWB's "private investment accounts" from 2005.  

I believe that within twenty years or more, the PPACA or "Obamacare" will be looked upon in a similar light as we now regard the Social Security Act of 1935. Like social security, the ACA will have several revisions, but its basic structure will remain intact and become a fixture of American society just as Social Security has become.  

Granted that the FDR museum sheds the life and times of FDR in a more favorable light, but one would be wrong to believe that it is all sunshine and light on FDR. There are items about his mistress and the strained marriage with Eleanor. There are also segments showing what the opponents of FDR said during his time as president. In fact, looking back on some of those comments made against the Social Security Act of 1935, they sound eerily similar to those against the ACA. Many were very mean spirited and demeaning toward those who would benefit from the Social Security Act. Many actually look ridiculous when seen in today's light. Those who oppose the ACA should be careful of what they are saying. No doubt, come 2034 or 2064, those comments would also look very mean spirited and demeaning as well as ridiculous to the people in 2034 and 2064.

Lee Kamps

Lee has been working with Medicare, Medicaid and private health insurance since he began working at the Erie County Welfare Department in January 1973 where a major part of his job was determining eligibility for Medicaid. He went into the private insurance business in 1977 with Prudential Insurance Company and within a short time had become one of the company’s top sales agents. In 1982, he was promoted into management where he managed two field offices and as many as thirteen sales agents. After leaving Prudential in 1986, Lee decided to become more focused on health insurance and employee benefits. He has advised many local employers on how to have a more cost effective employee benefit program as well as conducted employee benefit meetings and enrollments for many area employers. The companies Lee has worked with ranged from small “mom and pop” businesses to local operations of large national companies. Lee received his B.S. degree from Kent State University where he has been active in the local alumni association. He has completed seven of the ten courses toward the Certified Employee Benefit Specialist designation. He has taught courses in employee benefits and insurance at Cleveland State University and local community colleges. In addition, Lee is an experienced and accomplished public speaker. He has been a member of Toastmasters International where he achieved the designation of “Able Toastmaster – Silver” in 1994. He has also served as a club president, Area Governor and District Public Relations Officer in Toastmasters as well as winning local speech contests. Lee has also been a member of the Greater Cleveland Growth Association’s Speaker’s Bureau where he was designated as one of the “official spokespeople for the Rock and Roll Hall of Fame” prior to the hall’s opening in 1995. He has given talks and presentations before many audiences including civic organizations, AARP chapters and many other community groups. With the implementation of the Medicare Modernization Act (Medicare drug bill) in 2006, Lee has shifted his focus to Medicare and helping Medicare beneficiaries navigate the often confusing array of choices and plans available. As an independent representative, Lee is not bound to any one specific company or plan, but he can offer a plan that suits an individual person’s needs and budget. In addition, Lee is well versed in the requirements and availability of various programs for assistance with Medicare part D as well as Medicaid. While he cannot make one eligible, he can assist in the process and steer one to where they may be able to receive assistance.

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Volume 6, Issue 4, Posted 7:33 AM, 04.01.2014