History Health
10
Introduction and history of health insurance in the united states
Chandra Westergaard
Crowell & Moring
I. Introduction and History of Health Insurance in the United States Health “insurance” provides individuals with protection against the financial loss that can result from accidents or sickness. In the United States, very few people continue to receive protection from losses against illness through what would traditionally be thought of as “insurance.” Instead, healthcare benefits are procured and financed through a variety of different systems. This article is intended to introduce the reader to the subject of health insurance, as that term is colloquially used to refer to all types of vehicles for providing coverage for healthcare benefits. It is a simple overview of an extremely complex and highly regulated industry, and a jumping off point for a more in-depth and focused understanding of the subject.
The provision of health benefits became especially popular in the United States following World War II, as employers tried to make their job offers more appealing as they competed for a limited pool of workers. The provision of health insurance benefits became even more popular when the federal government provided extremely favorable tax incentives to employers that offered them. The earliest formal health insurance offerings were Blue Cross plans, which were created by provider organizations in the 1930s and offered prepaid hospital benefits. Managed care organizations, specifically health maintenance organizations, began to develop about 40 years later, in response to a dramatic increase in spending on healthcare costs. Today, healthcare spending continues to rise and is an every increasing percentage of our federal, state, and personal budgets. Health insurance, or the lack thereof, touches the lives of every American.
II. Types of Health Insurance
In the United States, people receive their
Introduction and history of health insurance in the united states
Chandra Westergaard
Crowell & Moring
I. Introduction and History of Health Insurance in the United States Health “insurance” provides individuals with protection against the financial loss that can result from accidents or sickness. In the United States, very few people continue to receive protection from losses against illness through what would traditionally be thought of as “insurance.” Instead, healthcare benefits are procured and financed through a variety of different systems. This article is intended to introduce the reader to the subject of health insurance, as that term is colloquially used to refer to all types of vehicles for providing coverage for healthcare benefits. It is a simple overview of an extremely complex and highly regulated industry, and a jumping off point for a more in-depth and focused understanding of the subject.
The provision of health benefits became especially popular in the United States following World War II, as employers tried to make their job offers more appealing as they competed for a limited pool of workers. The provision of health insurance benefits became even more popular when the federal government provided extremely favorable tax incentives to employers that offered them. The earliest formal health insurance offerings were Blue Cross plans, which were created by provider organizations in the 1930s and offered prepaid hospital benefits. Managed care organizations, specifically health maintenance organizations, began to develop about 40 years later, in response to a dramatic increase in spending on healthcare costs. Today, healthcare spending continues to rise and is an every increasing percentage of our federal, state, and personal budgets. Health insurance, or the lack thereof, touches the lives of every American.
II. Types of Health Insurance
In the United States, people receive their