Question

Why were the first health insurance organizations formed in America? What were the original driving factors? Describe the early growth of health insurance in the US.

Answer 1

Ans) In 1850, the first U.S. insurance firm was founded. It offered insurance against injuries received during an accident. Hospital and medical expense insurance wasn't introduced until the 1920s. Individual hospitals (and in 1929, employers) offered pre-paid plans to help cover the cost of medical expenses.

- The rise of private insurance was accompanied by the gradual expansion of public insurance programs for those who could not acquire coverage through the market. Hospital and medical expense policies were introduced during the first half of the 20th century.

- During the 1920s, individual hospitals began offering services to individuals on a pre-paid basis, eventually leading to the development of Blue Cross organizations in the 1930s. The first employer-sponsored hospitalization plan was created by teachers in Dallas, Texas in 1929.