1798: Congress passes the Act for the Relief of Sick and Disabled Seamen. It provides health services to members of the merchant marine and funds a loose network of hospitals through the Marine Hospital Fund. The MHF is plagued by cost overruns, administrative mismanagement, and rationing of care. Some leaders oppose the new federal subsidies as an abuse of state sovereignty.
Washington Post and Forbes.
On the politics of this, note that John Adams, who signed the bill into law as president, was on the “big government” end of the Founders, and his big-government approach in office in the 1790s–like signing the Alien and Sedition Acts–led to the ouster of the Federalists by Thomas Jefferson in 1800.
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