Health Insurance in modern times has evolved into an indispensable component of the insurance industry. More particularly in the developed nations, Health Insurance is the norm rather than an exception for average citizens. Health insurance can be provided by either public agencies or by private outfits, and in country like the United States, market-based health care systems rely primarily on private Health Insurance. The health insurance industry in the US is composed of major US health insurance companies like Aetna, Aflac, Assurant, Blue Cross/Blue Shield, The Regence Group, and others.
History :
Prior to 1920, the state of medical technology was not very developed implying little hope for patients, and patients were mostly treated in their homes. It was seen that wages lost due to sickness were four times larger than the medical expenditures associated with treating the illness and hence people didn't opt much for Health Insurance and rather preferred "sickness" insurance (similar to today's "disability" insurance) more. The low demand for Health Insurance also discouraged the insurance companies to offer private health insurance policies, and moreover those companies were reluctant to engage in heath insurance business since it was vulnerable to fraud and manipulation. The low acceptability of health insurance also hindered the development of a mandatory and nationalized health insurance scheme in the US. The American commercial insurance firms offered burial insurance to pay funeral costs.
Increase in the Demand for Medical Care :
With the development of medical science and with that the rising medical cost, there occurred an increase in demand for medical care in the US. Gradually a new payment innovation developed at the end of the 1920s that had revolutionized the market for Health Insurance. The precursor to Blue Cross was founded in 1929 and the pre-paid hospital service plans grew over the course of the Great Depression. Later the Blue shield joined the fray with the Blue Cross making up the stage for a flourishing future of health insurance in the USA. The supply of Health Insurance increased once commercial insurance companies decided to enter the American market for health coverage. The American market for Health Insurance had grown from a total enrollment of 20,662,000 in 1940 to nearly 142,334,000 in 1950.
The Age of Health Insurance :
By the 1960s, private health insurance system in the United States was well established. In 1958, nearly 75 percent of Americans had some form of private health insurance coverage. Around this time the move to establish a government-sponsored health insurance system was also strongly emphasized upon. The Medicare and Medicaid policies had come into effect. Nevertheless the health insurance market in the US, as mentioned earlier, is dominated by the private insurance companies and there are a large number of private health insurance companies in the US which cover all possible aspects of human illness and disability and offers all kinds of customer-friendly policies to choose from.
For more information on various notable health insurance companies in the US, please explore the following links:
