Our basic social security program, the Old-Age and Survivors Insurance system, to which individuals contribute during their productive years and receive benefits based on previous earnings, is designed to shield them from destitution.  Last year I recommended extension of the social insurance system to include more than 10,000,000 additional persons.  I ask that this extension soon be accomplished.  This and other major improvements in the insurance system will bring substantial benefit increases and broaden the membership of the insurance system, thus diminishing the need for Federal grants-in-aid for such purposes.  A new formula will therefore be proposed, permitting progressive reduction in such grants as the need for them declines.

Federal grant-in-aid welfare programs, now based on widely varying formulas, should be simplified.  Concrete proposals on fourteen of them will be suggested to the appropriate Committees.

The program for rehabilitation of the disabled especially needs strengthening.  Through special vocational training, this program presently returns each year some 60,000 handicapped individuals to productive work.  Far more disabled people can be saved each year from idleness and dependence if this program is gradually increased.  My more detailed recommendations on this and the other social insurance problems I have mentioned will be sent to the Congress on January 14th.

HEALTH

I am flatly opposed to the socialization of medicine.  The great need for hospital and medical services can best be met by the initiative of private plans.  But it is unfortunately a fact that medical costs are rising and already impose severe hardships on many families.  The Federal Government can do many helpful things and still carefully avoid the socialization of medicine.

The Federal Government should encourage medical research in its battle with such mortal diseases as cancer and heart ailments, and should continue to help the states in their health and rehabilitation programs.  The present Hospital Survey and Construction Act should be broadened in order to assist in the development of adequate facilities for the chronically ill, and to encourage the construction of diagnostic centers, rehabilitation facilities, and nursing homes.  The war on disease also needs a better working relationship between Government and private initiative.  Private and non-profit hospital and medical insurance plans are already in the field, soundly based on the experience and initiative of the people in their various communities.

A limited Government reinsurance service would permit the private and non-profit insurance companies to offer broader protection to more of the many families which want and should have it.  On January 18 I shall forward to the Congress a special message presenting this Administration’s health program in its detail.

EDUCATION