Social Security

Since its inception in 1935, Old-Age Insurance has broadened into Old-Age, Survivors’, Disability, and Health Insurance. The expansion of benefits began in 1939 when survivors’ benefits were added and the dependents of a deceased worker became eligible to receive monthly compensation. In 1956 the law was amended again to provide disability income benefits to a worker if he became permanently and totally disabled between the ages of 50 and 64. The most recent and possibly the greatest broadening took place in 1965 when the law was amended to include compulsory hospital insurance and a voluntary medical insurance plan for persons over 65. These benefits are known as Medicare. In addition to expanded benefits the act has been modified to give more individuals coverage and to liberalize existing coverages. For example, the original act provided benefits only to persons employed in commerce and industry, thereby excluding the self-employed, professional groups, and farmers. Today over
90 percent of the gainfully employed persons in the United States are covered. An example of a liberalization of coverage occurred in
1960 when the age requirement for the receipt of disability benefits was removed. Benefits have also undergone substantial increases since 1935.