 |
 |
|
|
|
|
|
|
|
Pro-vide Health Insurance: The U. S. public has chosen to meet a sizable part of its medical costs through voluntary or private insurance. A variety of organizations exist to serve these needs.
Types of Insurers. Corporate insurers that pro-vide health insurance include stock companies (owned by stockholders), mutual companies (owned by members), hospital associations, and associations of physicians. The stock and mutual companies include both life and nonlife insurance companies. A few companies offer only health insurance, but most of .them sell other types of insurance as well.
Historically "assistance" dates back to legislation at the beginning of the 17th century. "Insurance" as a state concern is essentially a product of the 20th century. The enactment of workmen's compensation legislation in 1897 was followed by a state retirement pension in 1908, health and unemployment insurance from 1911, and a contributory pensions scheme from 1925. Whereas assistance was administered by local government authorities, insurance was administered primarily by the central government, with some use of private underwriters, particularly in the development of health insurance.
Marketing Systems. Private insurers take two approaches to providing health insurance—group and individual. Group insurance is a means of insuring a large number of persons in one contract. In a typical case an employer purchases a group insurance policy to cover his employees and perhaps their dependents. The major advantages of group insurance are that there may be few if any questions asked as to the health characteristics of the insured persons and the premium expense is lower. From the employee's standpoint there is the advantage of the employer paying all or part of the premium, and in addition the employee does not have to include the employer's payment as part of his taxable income.Individual contracts may be more personally tailored to an individual's desires. Also, they are available to those people who may not have group policies available to them.
|
|
|
|
