Health Insurance has become one of the most important expenses you can have, a kind of non-negotiable accessory of life, but where did it all begin? Here’s a brief history on the subject as well as the latest development in the industry.
In the early 1920s, hospitals started offering services on a prepaid basis, where teachers joined together and agreed to pay what we know now as an insurance premium, according to Ahpcare. A man by the name of Justin Kimball then started Blue Cross, which allowed teachers to pay about 50 cents monthly for future hospitalization.
We now understand the concept of healthcare insurance much better and we have policies designed specifically to cover us when we are in need. Healthcare insurance covers us when we cannot carry a financial loss because of illness and injury. At this point, we have two different types of healthcare insurance one being full Cover which includes hospital, dental, physiotherapy, and much more. Where a hospital cover only covers planned or unplanned expenses accrued by the insured patient. A Hospital plan does not include anything outside of the hospital as full medical aid does.
This financial sector quickly noticed that people were able to bypass this and commit fraud by claiming for expenses that never really happened. This is why we get the huge Policy schedules that we do in today’s time. Processes and rules were established in order for the financial provider to monitor and prevent these fraudulent claims. Just as the financial institutions thought they had everything under control, they quickly realized they had not. Individuals also got smarter and teamed up with healthcare practitioners to try and scam these medical aid schemes.
As a result medical aid, for the mere fact that they were paying people who weren’t really sick, quickly became more expensive to a point where average income individuals were not able to afford it. This is where ACA compliance plays a crucial role for the average person. It was signed by President Obama in March 2010, this basically meant that now the average citizen would be able to get medical aid cover even if they could not afford it.
Shortly after this in January 2016, the employer mandate act was also in effect. This meant that employers had to offer health insurance. Not top of the range cover, it only provided minimum value, but it was also affordable. The fact is that the industry has come far in ensuring that most individuals are protected in case of any unexpected accidents that may result in medical expenses.
Health Insurance may sometimes seem like a waste of money, it may even feel like you could be spending it on something more important. After all, you never get sick, right? WRONG! Health Insurance is the cushy pillow that will catch you if anything should ever happen to you or your loved one, because the last thing you want to be worrying about when disaster strikes is something as unimportant as money.