Making health insurance work for consumers
Healthcare in
The nature of insurance is to protect against unforeseen and expensive problems. However, today, health insurance also covers routine care, such as essential check-ups that are neither unforeseen nor bank-breaking. This would be akin to expecting your auto insurance to cover oil changes you know are coming.
Because a significant part of the insurance cost is paid by their employer, most consumers don’t even know the total price of their healthcare. Combined with the growth of the scope of health insurance, there is little market pressure on healthcare providers to control their costs, even for routine services.
Health insurance and employment were not always intimately tied. The connection has grown due to legislation and regulations that facilitated health insurance expansion beyond covering catastrophic events.
The first health insurance program in
In 1932, a collection of hospitals in
Other insurance plans, such as prepaid group practice in 1929 (later to become Health Maintenance Organizations) and
The following year, the
Congress’ first intentional foray into promoting employer-based health insurance occurred in 1947 by empowering labor unions to bargain for employer-sponsored health insurance through the Taft-Hartly Act. In two decades, America went from only 9 percent of the population having health insurance to 70 percent. By 1960, health insurance had replaced personal payment as the dominant way of paying for healthcare.
In 1965, employment-based health insurance had become so ubiquitous that
In 2016, for the first time, the government went beyond incentivizing employer-provided health insurance or filling in gaps and fully embraced the system. The Affordable Care Act mandated employer-based health insurance for businesses with 50 or more full-time employees.
From the first health insurance program at
ABOUT THE WRITER
Home Depot lowers its expectations for the coming year
Harris uses bank battle to show her commitment
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News