History of Healthcare Insurance
History of Healthcare insurances in the United States
The United States is the only country where a person has options with regards to their healthcare. The U.S. allows choice in healthcare insurance, which in turn provides choice in the different aspects of healthcare like doctor, hospital, and specialist. This was not always the case as healthcare insurance has evolved over the years. The history of healthcare insurances in the United was began in the mid 1700s but did not develop until 1850, when Franklin Health Assurance Company of Massachusetts began providing accident insurance, to cover injuries associated to railroad and steamboat travel. After that came the sickness insurance covering all kinds of illnesses and injuries started to progress however, the first modern health insurance plans were not formed until 1930. Rather then the health insurance covering medical bills, the purpose of those plans was to compensate for the sick individuals inability to work and earn money. In the 1930s Dr. Justin Ford Kimball who was an administrator at Baylor University Hospital in Dallas, developed the Baylor Plan due to lack of payments from schoolteacher for their medicals bills. This Plan consists of teachers paying 50 cents per month in exchange for the agreement that they could obtain medical assistances for up to 21 days of any one-year. Shortly after many hospitals incorporated the Baylor ideal, by making medical coverage be more accessible. In 1939, the American Hospital Association (AHA) first used the name Blue Cross to designate healthcare plans that met their standards plans in the 1960s (Zhou, 2009). The Blue Cross Plan was a nonprofit organization; therefore it was exempt from paying taxes and usual insurance regulations, allowing the company to retain low payments. This plan was pre-paid and it covered physician and surgeon assistances, incorporating the...
References: Fortune, S. (2005, May 19). Congressional leaders advocate for universal health care. New York Amsterdam News. p. 4.
Zhou, Katherine. "The History of Medical Insurance in the United States." The Yale Journal of Medicine and Law. Vol. VI, Issue 1. 1 November 2009. < http://www.yalemedlaw.com/2009/11/the-history-of-medical-insurance-in-the-united-states/ >.
Bernstein, J. Chollet, D. Peterson, S. “How Does Insurance Coverage Improve Health Outcomes?.” Mathematica Policy Research, Inc. issue 1. April 2010. <http://www.mathematica-mpr.com/publications/PDFs/health/reformhealthcare_IB1.pdf>.
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