History of Health Insurance

Health insurance concept was first launched in the year 1964 from Peter Chamberlin family by Hugh who is known as Elder Chamberlin. During the late 19th century, health insurance/accident insurance was available and operated like modern disable insurance. This modern type of insurance continued till the early stage of 20th century in some areas like California and other places in United States where law regulates this health insurance referred to disable insurance.

Initially, health insurance/accident insurance was launched in United States by Franklin health insurance Company which is in Massachusetts. This company was started in the year 1850 offered health insurance for the employees working and getting against steam board accidents as well as injuries arising in railroads. By the year 1866, there are some sixty organizations offering health insurance/accident insurance in the United States. There were earlier experiments in the United States during the year 1866 for the origin of sickness coverage. After this coverage, during the year 1911, the foremost employer sponsored group disability policy was issued.

While the development of health insurance/accident insurance, a new model launched which is known as free for service where all the patients were in a position to pay all other health care expenses out of their own expense. Later during the middle 20th century, this disable insurance was developed into modernized health insurance program. During recent times, most of the private health insurance includes all the expense like emergency health care, drugs and medicine expenses, hospitalization expenses etc.

Medical expense policies and hospital policies were launched during the middle of 20th century. Finally during the year 1920, every individual hospital started offering their services on a pre paid basis purposely for the development on Blue cross organization. Health Maintenance Organization’s predecessors originated this beginning in the year 1929 as well as through the 1930’s.

Initially, this HMO has used the term health plan and some private companies have used the term medical/health insurance. From this, there was a vast difference between health insurance and health plan. A health plan can be said as a subscription based medical agreement or arrangements that are offered through HMO or other private companies as well as in the service plans point. These types of service plans are similar to the pre paid legal, pre paid dental as well as pre paid vision plans. All these pre paid health plans pay for specific types of services like preventive care, nursing skilled care facility, certain number of spine manipulation charges etc.

All these services that offered are commonly in the discretion of utilization review nurses who are contracted through the entity provided by the health plan. This type of subscription may be made after the admission in the hospital or prior to the admission. Later these prepaid plans have turned up in to premium amount that has to be paid every month or every year which depends on the overall body condition of an individual. They can be claimed before the policy expires too and this is the important benefit in the policy.