<P> The Social Security Act of 1965 authorized Medicare and provided federal funding for many of the medical costs of older Americans . The legislation overcame the bitter resistance, particularly from the American Medical Association, to the idea of publicly funded health care or "socialized medicine" by making its benefits available to everyone over sixty - five, regardless of need, and by linking payments to the existing private insurance system . </P> <P> In 1966 welfare recipients of all ages received medical care through the Medicaid program . Medicaid was created on July 30, 1965 under Title XIX of the Social Security Act of 1965 . Each state administers its own Medicaid program while the federal Centers for Medicare and Medicaid Services (CMS) monitors the state - run programs and establishes requirements for service delivery, quality, funding, and eligibility standards . </P> <P> A number of improvements were made to the Social Security program in terms of both coverage and adequacy of benefits . The Tax Adjustment Act of 1966 included a provision for special payments under the social security program to certain uninsured individuals aged 72 and over . The Social Security Amendments of 1965 included a 7% increase in cash benefits, a liberalization of the definition of disability, a liberalization of the amount a person can earn and still get full benefits (the so - called retirement test), payment of benefits to eligible children aged 18--21 who are attending school, payment of benefits to widows at age 60 on an actuarially reduced basis, coverage of self - employed physicians, coverage of tips as wages, liberalization of insured - status requirements for persons already aged 72 or over, an increase to $6,600 the amount of earnings counted for contribution and benefit purposes (the contribution and benefit base), and an increase in the contribution rate schedule . </P> <P> The Social Security Amendments of 1967 included a 13% increase in old - age, survivors, and disability insurance benefits, with a minimum monthly benefit of $55 for a person retiring at or after age - 65 (or receiving disability benefits), an increase from $35 to $40 in the special age - 72 payments, an increase from $1,500 to $1,680 in the amount a person may earn in a year and still get full benefits for that year, monthly cash benefits for disabled widows and disabled dependent widowers at age 50 at reduced rates, a liberalization of the eligibility requirements for benefits for dependents and Survivors of women workers, and an alternative insured - status test for workers disabled before age 31 . </P>

When did the federal government began cooperating with the states on policy goals