Originally, this included 120 days of hospital benefits and 120 days of nursing-home benefits. General revenue funds from the program would also be applied towards hospital construction equipment purchase and grants to teaching hospitals.

The second part of the law, also known as Part B, concerned physician visits. Initially, Part B was known as Eldercare, the American Medial Association's (AMA) alternative to Medicare. Mills however reformed it to become an optional part of the Medicare program and legislation. This is an option that pensioners could choose upon retirement. To receive benefits under Part B, deductions were made from recipients' Social Security checks.

The third part of the bill was Medicaid. The idea for this scheme originated during the early part of the 1960s. It was created as an alternative for the compulsory heath insurance plan suggested by the Johnson alternative. The scheme would be funded from general tax revenue, and...
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