History of Health Insurance
History of Health Insurance Medical cost has become very pricey and the United States did not always have health insurance. There are millions of people uninsured and its causing a heated debate in the United States. But does anyone know the history of health insurance and how it came about or even how has it become a big issue in the United States?
The American life insurance system was established in the mid-1700s. But health insurance did not merge until 1850 when the Franklin Health Assurance Company of Massachusetts provided accident insurance for those who got hurt due to railroad and steamboat travel. From this, insurance for all types of sickness evolved but the first modern insurance plans werent formed until 1930. Health insurance took a while to come about because back then medical technology was not very advanced and hosptials were regarded as unreliable institutions. During that time insurance was mainly used to compensate for those who were unable to work due to sickness rather than the medical bills. To help ease the healthcare problem, Baylor Hospital in Dallas created a system which eventually became Blue Cross to help people pay their hospital bills.
As science, medicine and hospitals became more sophisitcated and more successful the prices of medical care gone up because people no longer stayed home when sick or injured they actually turned to hospitals. In the late 1930’s Blue Cross Insurance started gaining ground to protect doctors interest and payments. The success of Blue cross and Blue Shield encouraged other insurers to enter the health care market. These private insurers charged based on age, gender, health status and pre-existing medical conditions and ended up insuring the healthiest people and avoiding the sickest ones which meant more profit for the company. Blue Cross and Blue Shield had no choice but to follow their lead. Then came World War II and the shortage of labor which encouraged employers to provide
The American life insurance system was established in the mid-1700s. But health insurance did not merge until 1850 when the Franklin Health Assurance Company of Massachusetts provided accident insurance for those who got hurt due to railroad and steamboat travel. From this, insurance for all types of sickness evolved but the first modern insurance plans werent formed until 1930. Health insurance took a while to come about because back then medical technology was not very advanced and hosptials were regarded as unreliable institutions. During that time insurance was mainly used to compensate for those who were unable to work due to sickness rather than the medical bills. To help ease the healthcare problem, Baylor Hospital in Dallas created a system which eventually became Blue Cross to help people pay their hospital bills.
As science, medicine and hospitals became more sophisitcated and more successful the prices of medical care gone up because people no longer stayed home when sick or injured they actually turned to hospitals. In the late 1930’s Blue Cross Insurance started gaining ground to protect doctors interest and payments. The success of Blue cross and Blue Shield encouraged other insurers to enter the health care market. These private insurers charged based on age, gender, health status and pre-existing medical conditions and ended up insuring the healthiest people and avoiding the sickest ones which meant more profit for the company. Blue Cross and Blue Shield had no choice but to follow their lead. Then came World War II and the shortage of labor which encouraged employers to provide