Historical Background Of Health Insurance
A brief history
of health insurance coverage reveals that in the aftermath of World
War II, the US government sought to provide
maximum benefits to the populations in her efforts
to reduce the burden otherwise incurred on rise
in wages. This policy continued for a number
of years, until the introduction of relevant
laws in 1950 to provide Medicare for the needy
populations of the state.
This was also the first time that
the government participated in any form of financing
health care on behalf of the populations, and
this was accomplished through direct payment
to the various health care providers including
doctors, physicians and hospitals.
The
U.S Government Played A Vital Role In Introducing
Health Care Insurance
The US government also introduced the famous
"Medical Assistance to the Aged" legislation
in the decade of 1960s, opening doors of medical
assistance and other health care services to
the elderly and poor populations though putting
restrictions on the extent of medical expenses.
This was followed by the
passage of legislation for the establishment
of 'Medicare and Medicaid Programs' in 1965
making a part of the Social Security Act. Responsibilities
of these programs was entrusted to the Department
of Health, Education and Welfare, all of who
are presently covered under a single department
of Health and Human Services.
The Medicare
program was however run by the Social Security
Administration, while the Medicaid program was
run by the Social and Rehabilitation Service.
Both these areas were then transferred to the
newly formed Health Care Financing Administration
(HCFA) as of year 1977, and renamed again as
the Centers for Medicare & Medicaid Services
(CMS).
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