Health Economics

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HISTORY OF HEALTH INSURNCE I stopped for a moment to imagine an average Americana’s world without a health insurance, what will become of such individual when the need for healthcare beckons? How will such individual offset the outrageous bill of healthcare? Health insurance is used in America to describe any program that helps pay for medical bills through the following: privately purchased and social insurance or a social welfare program usually powered by the government. Simply put, health insurance is any form of insurance that provides protection by offsetting the actual costs of medical services. Before the onset of federal government’s intervention on health insurance, it can be said that the onus were thrown to lower arms- the…show more content…
Thanks to the J.F. Kennedy administration that put a new song on the lips of people in dire need of health insurance. His administration initiated a government sponsored healthcare where the elderly were really considered. This marked the onset of Medicare and Medicaid- Providing healthcare for retirees, aged and the impoverished. The concept of Medicare and Medicaid involves the federal government paying back physicians for taking care of the retirees, aged and the impoverished; this bill was passed in 1965. Although both Medicare and Medicaid started minutely to cover hospital and physician’s services; sporadically, the expenditure allocated to Medicare and Medicaid began to shoot up with time. Then in September 2, 1974, to address mishaps in the dispensation of certain large pension plans, a bill was passed which entails employee retirement income security act (ERISA); this led to the growth of self-insured employer health plan. Erstwhile, in 1973, Healthcare Maintenance Organization (HMO) Act was enacted, it was created to minimize the cost of healthcare by increasing the level of competition in the healthcare market and increasing access to coverage for individuals. From 1976 through 1996 amendments were made on the HMO acts
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