<P> During World War II, the federal government introduced wages and price controls . In an effort to continue attracting and retaining employees without violating those controls, employers offered and sponsored health insurance to employees in lieu of gross pay . This was a beginning of the third - party paying system that began to replace direct out - of - pocket payments . </P> <P> Following the world war, President Harry Truman called for universal health care as a part of his Fair Deal in 1949 but strong opposition stopped that part of the Fair Deal . However, in 1946 the National Mental Health Act was passed, as was the Hospital Survey and Construction Act, or Hill - Burton Act . In 1951 the IRS declared group premiums paid by employers as a tax - deductible business expense, which solidified the third - party insurance companies' place as primary providers of access to health care in the United States . </P> <P> In the Civil Rights era of the 1960s and early 1970s, public opinion shifted towards the problem of the uninsured, especially the elderly . Since care for the elderly would someday affect everyone, supporters of health care reform were able to avoid the worst fears of "socialized medicine," which was considered a dirty word for its association with communism . After Lyndon B. Johnson was elected president in 1964, the stage was set for the passage of Medicare and Medicaid in 1965 . Johnson's plan was not without opposition, however . "Opponents, especially the AMA and insurance companies, opposed the Johnson administration's proposal on the grounds that it was compulsory, it represented socialized medicine, it would reduce the quality of care, and it was' un-American ."' These views notwithstanding, the Medicare program was established by legislation signed into law on July 30, 1965, by President Lyndon B. Johnson . Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are either age 65 and over, or who meet other special criteria . </P> <P> In 1970, three proposals for single - payer universal national health insurance financed by payroll taxes and general federal revenues were introduced in the U.S. Congress . In February 1970, Representative Martha Griffiths (D - MI) introduced a national health insurance bill--without any cost sharing--developed with the AFL--CIO . In April 1970, Senator Jacob Javits (R - NY) introduced a bill to extend Medicare to all--retaining existing Medicare cost sharing and coverage limits--developed after consultation with Governor Nelson Rockefeller (R - NY) and former Johnson administration HEW Secretary Wilbur Cohen . In August 1970, Senator Ted Kennedy (D - MA) introduced a bipartisan national health insurance bill--without any cost sharing--developed with the Committee for National Health Insurance founded by United Auto Workers (UAW) president Walter Reuther, with a corresponding bill introduced in the House the following month by Representative James Corman (D - CA). In September 1970, the Senate Labor and Public Welfare Committee held the first congressional hearings in twenty years on national health insurance . </P>

Who was one of the first presidents who advocated for universal health care