subject: The Emergence Of Insurance Companies In The Us [print this page] The health insurance industry is one of the biggest sectors in the market. Today, more people are obtaining insurance policies for future medical needs. In India, there are about 7.2 million beneficiaries of government health insurance programs. On the other hand, 85% of the United States population is insured. Both governments are creating program reforms to increase the number of their insured people by improving the countrys health care system.
The concept of health insurance dates back from the 20th century. Mortality rates increased because of financial inability of people to sustain medical expenses. This was aggravated by their belief in quack doctors and home remedies. Hence, people rarely went to doctors and medical experts for help.
During that time, the field of medicine had undergone a complete overhaul. Licensure and regulations were implemented by the government and health organizations. People began to consult doctors and experts for sicknesses and diseases, but people had difficulty keeping up with high financial demands of medical services.
The cost of hospitalization, drug prescription, and doctors consultation surged up. As part of management response to employee needs, companies began to include health insurance policies as benefit compensation. The first insurance package was comprised of 21 days hospitalization for an agreed $6 payment. The first health insurance company coordinated with universities and medical centers to insure professors and teachers in an educational institution.
Today, the health insurance industry in the US is composed of various private insurance companies. Aside from government-assisted insurance programs, Medicare supplement insurance companies offer health insurance packages to private individuals. Their benefits cover excluded provisions in ordinary Medicare health insurance accounts. This does not only include hospitalization, but also doctors consultation, drug prescription, and in-patient and out-patient medical services.
Health insurance is one of the essential benefits provided to employed individuals. Management and human resource department of private companies are connected with Medicare supplement insurance companies for insurance packages. They automatically enroll them in basic insurance programs. Deductibles are acquired from the employees monthly salary. Employees can upgrade their insurance packages upon regularization.
Health insurance upgrade provides a wider network of medical providers and benefit coverage. However, Medicare supplement insurance companies require higher premium and monthly deductible for total coverage of medical expenses.
by: Bridgette Dry
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