Financial problems of Medicare When Medicare was signed into law in 1965,budgetary issues were not of great concern to legislators or economists primarily because:

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At the time Medicare was signed into law, the financial sustainability of the program was not a major concern because there were enough under-65 workers to support the system through their contributions. This demographic situation allowed for a stable source of funding, under the assumption that a large, younger workforce would continue to support the smaller, older population drawing benefits.

Financial Problems of Medicare When Medicare Was Signed into Law