1929 is generally credited as marking the birth of modern health insurance

1929 is generally credited as marking the birth of modern health insurance

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1929 is generally credited as marking the birth of modern health insurance. Justin Ford Kimball established a hospital insurance plan at the Baylor University Hospital for schoolteachers of Dallas, Texas He was a sensitive to the plight of school teachers as many had unpaid bills at the hospital. Working from hospital records he calculated that the schoolteachers as a group “ incurred an average if 15 cents a month in hospital bills. To assure a sage margin, he established a rate of fifty cents a month (Anderson,1975,p.19) in return the schoolteacher were assured twenty one days of hospitalization in semiprivate room. The success spread and over the years his approach was the model for what became the blue cross plans around the country the concept of assuring the benefit not of cash bout of service, the emphasis on semiprivate accommodations, and even the time frame of 21 days of benefits. Tough 1929 is cited as the beginning there were antecedents. Anderson (1975) notes n-for example,between 1916 & 1918 attempts were made by 16 state legislatures from new York to California to establish some form of compulsory health insurance essentially a mechanism to help families pay for health services .Even though medical costs were already being felt as costly and unpredictable episodes. The necessary mass political support in the states was not present however the slid opposition of
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American medical association insurance companies and the pharmaceutical industry not to mention business and industry opposed to unaccustomed payroll taxes stopped the movement. Health insurance institute cites antecedents when health insurance began sone 130 years ago The nations first insurance company came into being in 1847 Mutual benefit associations, or “establishment funds,” began in 1875 in the United States. These funds—sometimes financed partially by employers—provided small payments for death or disability of workers in a single organization. Both accident insurance companies and life entered the health insurance field in the early 1900s. At the beginning, the insurance largely covered the policyholders’ loss of earned income due to a limited number of diseases, among them typhus, typhoid, scarlet fever, smallpox, diphtheria, and diabetes. . . . At one time, we could describe four basic groups that provided protection against the costs of health care services: commercial insurance companies, the nonprofit Blue Cross and Blue Shield plans, health maintenance organizations (HMOs), and government plans. Definition of HMO Health Maintenance Organization . A form of health insurance combining a range of coverages in a group basis. A group of doctors and other medical professionals offer care through the HMO for a flat monthly rate with no deductibles . However, only visits to professionals within the HMO network are covered by the policy . All visits, prescriptions and other care must be cleared by the HMO in order to be covered. A primary physician within the HMO handles referrals. Definition of managed care
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1929 is generally credited as marking the birth of modern health insurance

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