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American History of Health Insurance.

Question: Health insurance is a concept developed in the United States and now appearing in many other nations of the world. Its history and development is an interesting story. Briefly trace the history of health insurance in America, from the beginnings with Blue Cross up to the Managed Care era.

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Blue Cross and Blue Shield plans were started as an experiment in Texas to "provide increased hospital coverage to members of the community at an affordable rate" (Blue Cross and Blue Shield. A Historical Compilation, n.d.). Justin Ford Kimbell, who was formerly a school superintendent, was hired by Baylor University in 1929 to help with the finances of the University Hospital. Mr. Kimball's plan allowed prepaid hospital coverage so that hospital patients would be able to pay their bills and the hospital would be able to be viable. This plan was originally offered to teachers, offering 21 days of hospital care for $6 a year. The success of this initial offering evolved from 1,300 teachers initially signing up for the program to more than 408 employee groups with over 23,000 members covered within five years (Blue Cross and Blue Shield. A Historical Compilation, n.d.).

This system grew, with slight adjustments being made as the networks developed in other states, including offering members an opportunity to have ...

Solution Summary

This detailed solution traces the history of health insurance in the U.S. from Blue Cross to Managed Care. Includes APA formatted references.