Transcription of HISTORY OF HEALTH INSURANCE IN THE UNITED STATES H
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HISTORY OF HEALTH INSURANCE IN THE UNITED STATES H
CHAPTER31 HISTORY OF HEALTH INSURANCE IN THE UNITED STATESH ealth INSURANCE , as we generally think of it in the UNITED STATES , began with the Great Depression in the 1930s. In this chapter, we review the HISTORY of HEALTH INSURANCE and demonstrate how that HISTORY is linked to current HEALTH INSURANCE developments. Predating private HEALTH INSURANCE were efforts at government-sponsored coverage for workplace injury and a tradition of industrial sickness funds. The Great Depression led hospitals and then physicians to implement forms of INSURANCE as means to ensure payment for services. Interestingly, conventional INSURANCE and managed care were developed at this same time.
Commercial insurers aggressively competed with others by offering lower premiums to larger employers, based on their lower claims experience. Fed-eral preemption of state insurance laws led to dramatic growth in self-insured employer plans. The 1980s saw the development of managed care, prompted
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