Question

help needed. The question is as follows: insurance began in the early part of the twentieth century as a means to protect an organization's assets, either its financial assets or its manpower. Since the early days, health insurance evolved into a system of managed care in order to control issues such as overutilization, skyrocketing costs, limited restrictions, and low-quality care. Using the library or the Internet, search for articles on health insurance and managed care. Based on your research, summarize your findings and answer the following questions:

Evaluate the purpose of health care insurance in the early days.

Evaluate the evolution of health insurance and managed care.

Answer 1

The purpose of Health insurance in early Days:

The need for health care became increased in the early day. The various illness and associated diagnostic test, development of technology, rise of health care cost bring health insurance as the ultimate one. Initially, different plan arises in the market by a various insurance provider. This makes competition between the providers and offers various benefits and coverage for the people. People choose their policy on their own to avoid unnecessary expenses in healthcare. Young adults also preferred to buy insurance to cover the pre-existing condition and to avoid restrictions in the future. Thus every individual in need of health insurance to fulfill their health care requirements.

Evolution of health insurance and managed care:

Managed care is the health plan which regulates the insurers, providers, health care costs. Previously, in the fee-for-service plan, the employer unable to estimate the employee health plan. Thus managed care began, which offers health services to the employees under a specified group of providers for a routine checkup and refer to the specialist if needed. The provider gets payment on a contract basis. The managed care plan also offers discount, incentives, low out of pocket cost within the provider network. It lowers the expensive services through their restrictions.