Certified in Healthcare Compliance (CHC) Practice Test 2026 - Free CHC Practice Questions and Study Resources

The Social Security Act is the correct choice because it was enacted in 1935 and laid the foundation for the establishment of various social welfare programs, including Medicare and Medicaid. Specifically, the programs for elderly and low-income individuals were introduced through amendments to this act in 1965. The creation of Medicare aimed to provide health insurance coverage for people aged 65 and older, while Medicaid was designed to assist with medical costs for those with limited financial resources.

In contrast, the Affordable Care Act focused on expanding healthcare coverage and reforming various aspects of the healthcare system, but did not establish Medicare or Medicaid. The Health Insurance Portability and Accountability Act primarily governs the protection of patient health information and does not pertain to the creation of these programs. The Balanced Budget Act, passed in 1997, made changes to Medicare and Medicaid but did not create them. Therefore, the Social Security Act is foundational in the history and establishment of Medicare and Medicaid.