Thursday, September 1, 2011

How and why did health insurance companies come into being

How and why did health insurance companies come into being?
I am curious how health insurance companies got such a "foothold" in the United States.

Insurance - 1 Answers
Random Answers, Critics, Comments, Opinions :
1 :
The first is thought to be Franklin Health Assurance Company of Massachusetts. However, the original policies where what we now call accident insurance, not what we know call health insurance. Health insurance in the modern sense (covering illness, not just accidents) was introduced in the late 19th or early 20th century but did not become very common until the early 1940's. During World War Two, the government limted the wages that companies could pay to employees, and many companies bought health insurance as a way to provide employees with more total compensation than they could provide in actual money.
2 :
Because the UNIONS wanted benefits for their members. The UNIONS created the insurance companies and get a huge kick-back from them.

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