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Wednesday, October 12, 2011

Health Insurance History

The initial concept of putting up health insurance is through the proposal of Hugh the Elder Chamberlen in 1694. Hugh is from the family of Peter Chamberlen. During the later part of the 19th century, accident insurance became available which was used more as a form of disability. This mode of payment continued in some jurisdictions until the start of the 20th century wherein laws regulating health policies became advocates of health insurances and is referred to the disability insurance.

In the United States, accident insurance began due to the efforts of the Franklin Health Assurance Company of Massachusetts. Founded in 1850, this firm offered insurance that answered injuries that aroused from steamboat and railroad accidents. By 1866, there are at least 60 organizations that offered accident insurance but soon thereafter, the industry rapidly disintegrated.
Patients were then expected to answer for all health care cost from their very own pockets without getting any help from establishments or from the government. Not until the later years of the 20th century when the conventional insurance has evolved into a modern insurance program that paid for almost the entire hospital and disability cost burdened to patients. Nowadays, the absolute compensation coming from private and public programs cover the cost of preventive, emergency and routine health procedures. Insurances also cover prescription medications. But there are cases wherein these benefits are not completely followed.
During the early years of the 20th century, medical and hospital expense policies are introduced. In the 1920s, private and individual hospitals started offering basic services to their patients in consideration with a pre-paid method which eventually led to Blue Cross organizational development.
In the present state, there are about 75% of the total population in the United States that currently has a private health insurance which is provided either by Blue Shield or Blue Cross organizations or otherwise supported by commercial insurance firms. Some companies have the ability to provide their own set of coverage and there are industries that provide insurance through the trust funds of joint labor management.
Health insurances are designed in order to meet the large costs of hospitalization and medicines. It pays for medical services that are quite expensive. There are also beliefs that because of the insurance, it tends to promote longevity and proper health due to affordability or sometimes free expenses. Through answering these financial burden health insurance protects the paying public from huge medical bills.

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