Medical Insurance History
Before the advent of medical insurance, patients used to pay for all medical costs out of their own pockets. This had a negative effect on the economies of different countries as workers became unreliable. This in effect affected production, leading to heavy loses.
Manufacturing enterprises bore the greatest effects of unreliable workforce. They could not know the number of employees who will turn up for work the following day, relying on workers who reported for work, whatever the number.
Workers' unreliability was mainly caused by disease and illnesses. With low wages, these workers could not afford the otherwise high cost of medical services out of their pockets. Most workers were forced to resort to traditional herbal medications. This meant that such workers took a long time in getting treatment, time which they would otherwise used to work.
Workers who were involved in serious accidents were ruled out of employment as their recovery took a long time and such accidents could actually result in permanent disability, ruling the victim(s) out of employment again.
The losses suffered by manufacturing enterprises and the overall negative effects on economies led to thinking of ways to address the problem. This led to the idea of medical insurance, which was proposed by an American Hugh Chamberlen in 1694.
It was however until the 18th century that Chamberlen's idea became practical with the establishment of America's Franklin Health Assurance Company, which was founded in 1850. The first cover that was unveiled by Franklin Assurance Company was for injuries sustained through railroad accidents. This became the first cover since most accident injuries at the time resulted from railroads.
The establishment operation of Franklin Assurance Company attracted attention from other investors and by 1866, over sixty insurance companies had been registered in America alone. They basically started providing cover for railroad accidents before venturing in providing other types of insurance.
Railroad accident cover was later followed by Disability Insurance that was taken by an employer for employees in 1911 to provide the employees with cover in case of serious accidents leading to disability.
The growth of medical insurance in the US continued though the initial cover was basic as such issues as routine and preventive health care were not covered. Prescription drugs were also not covered.
Modern medical insurance policy covers were developed in the early 20th century. This development saw the emergence of varied medical policy covers that suit different needs. Competition within the medical insurance industry has led to the development of medical insurance policies suitable for everyone in the society, whether employed, self-employed, student, single or married.
The development of medical policy covers is not yet over. Insurance companies offering medical insurance are constantly looking into ways of developing policies that suit all members of the society. Such companies strive to develop attractive policies in order to build a large client base. Such insurance companies have their agents all over the world. These agencies are particularly important to them as they advice their headquarters on what insurance policies are in demand or are suitable for particular regions.
