Health Insurance

Health insurance:

·           Ensures that an insured person is paid a specific sum for ailments covered under a health insurance policy

·           Defines the type of medical issues that will be covered for a person

n   Health insurance covers a wide range of medical facilities and assistance. Medical facilities covered under health insurance include:

·           Hospital services and supplies: medical and surgical

·           Hospital room and board, including intensive and cardiac care

·           Physicians' services: diagnostic, medical, and surgical

·           Nursing services

·           Other medical practitioners' services

·           Anesthesia and anesthesiologists' fees

·           Ambulance service

·           Laboratory and diagnostic tests, including x-rays

n   Key facts about the origin of health insurance in the United States

·           The first five health insurance companies originated in 1850.

·           Initially, the focus of health insurance was to make-up for wages lost due to illness rather than reimbursement of medical expenses.

·           The top 10 health insurance companies in the United States today include Aetna and CIGNA, which are more than 150 years old.

·           The health insurance industry has grown from 5 to 1300 companies.

·           Most of the health insurance companies that originated in 1850 went bankrupt. There is very little recorded information on them. These companies went bankrupt most probably because there was no defined framework.

·           Example of companies that have been into existence since 150 years are Aetna and CIGNA.

·           Most health insurance companies started as life insurers and branched into health insurance in the 20th century.