Insurance description
Health insurance is a type of
insurance whereby the insurer pays the medical costs of
the insured if the insured becomes sick due to covered
causes, or due to accidents. The insurer may be a
private organization or a government agency.
Market-based health care systems such as that in the
United States rely primarily on private health
insurance.
History and evolution
The concept of health insurance was proposed in 1694 by
Hugh the Elder Chamberlen from the Peter Chamberlen
family. In the late 19th century, early health insurance
was actually disability insurance, in the sense that it
covered only the cost of emergency care for injuries
that could lead to a disability[citation needed]. This
payment model continued until the start of the 21st
century in some jurisdictions (like California), where
all laws regulating health insurance actually referred
to disability insurance.[1] Patients were expected to
pay all other health care costs out of their own
pockets, under what is known as the fee-for-service
business model. During the middle to late 20th century,
traditional disability insurance evolved into modern
health insurance programs. Today, most comprehensive
private health insurance programs cover the cost of
routine, preventive, and emergency health care
procedures, and also most prescription drugs, but this
was not always the case. |
