subject: Health Insurance Through The Years [print this page] It was during the American Civil War (1861-1865) that the first insurance plan was put into action. Now it is a staple across the United States and all over world. The insurance plan during the Civil War era was known as the Accident Plan, which only offered coverage against specific types of accidents including those related to traveling by steamboat or by railways. This plan paved the way for more comprehensive coverages over time. Eventually it wasn't just for the accidents, but also for illnesses. The company Massachusetts Health Insurance of Boston was the first group that offered comprehensive health benefits. The first individual illness and disability policies were offered by the insurance companies; roughly around the year of 1890.
In 1929 a group of teachers had formed the first modern health insurance company in Dallas, Texas. They contracted with the Baylor Hospital which is located in the same state, for medical services and rooms in exchange for monthly payments. Blue Cross Blue Shield, who are still currently big in the health insurance industry today, started way back in 1932 as a nonprofit organization. The reason why Blue Cross Blue Shield was so successful is because they negotiated with hospitals and doctors for discounts contracted to their members. In the 1940s and 1950s, employees were starting to have their own benefit plans. People working for strong unions, which traded for better offers, included such things as the tax free employer-sponsored health insurance plan. During World War II (1941-1945), with all wages frozen in the United States, the government ordered a raise in the numbers of health care groups. From the 1950s to 1960s, paying for health insurance finally began. Around this time disability benefits were also added to the social security coverage program. Private sources had to pay for the health care expenses which were 75 percent when the government first established early version of the Medicaid and Medicare programs around 1965. Individuals and companies had to pay only 50 percent of costs for theses programs a year in 1995, with the other half being paid by the government.
President Bill Clinton proposed a universal healthcare plan in 1993 responding to the troubles that the US had at the time, but Congress rejected the proposal. It was also in the 1990s that a few health insurance programs were proposed including the Health Insurance Portability and Accountability Act and also the Health Parity Act which both passed in 1996. The failure of President Clinton's proposal lead to the restructuring of fundamentals in the health insurance programs. These days, health insurance companies are spread all over the states, both private and government run. The two most popular programs that are run by the government in the United States are Medicare and Medicaid which are specially designed for high risk and underprivileged groups like seniors, those with disabilities, and low income families and individuals. On March 21st, 2010 President Obama passed a health care reform bill that is still trying to integrate it's way into standard healthcare operation. The state of healthcare is forever changing and hopefully improving. We shall see what the future holds.
by: Casey Trillbar
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