Health Insurance is one of the big concerns for every American. No prizes for guessing, this is because the expenses of health care without health insurer are enormous. That’s why over its entire historical period, America has given strong importance to health insurance and it has spent highest amount on health care as compared to other countries over the world.

The origins of health care started in America in the early period of 18th century in the form of accidental insurance, which functions as a disability insurance in today’s time. Before 19th century, people had very less medical expenditure and most of the people felt they didn’t need any health insurance. The less demand of health insurance at that time resulted in insurance companies reluctant to give health insurance policies. As the 19th century progressed, the role of medicine increased in people’s lives and mode of treatment shifted from home to hospital. These changes had resulted in high demand for medical care and quality of standards also improved while supplying medical care.

In 1920s, the demand for medical care was at its peak, and the introduction of Blue Cross Hospital Insurance resulted in strong revolution in the health insurance industry. Though Blue Cross had helped in reducing price competition among the hospitals, the Blue shield plan was introduced to facilitate pre-paid hospitalization and third party payment system. After giant success of Blue Shield and Blue cross plans in 1930s, the stability in the growth of health industry took placed, this tempted many commercial companies to enter into market. During the time of 1940s, most important steps were taken to modernize health benefits, when employee union used to bargain with their employers for attractive packages and tax free employee sponsored insurance policy. At the time of war, critical injuries created more demand for health insurance and gradually employers introduced better insurance benefits in order to attract employees. In 1965, the government of United States invented Medicaid and Medicare programs and by 1995, government covered more than half of Americas health care cost.

From its early beginning to recent time, American health insurance industry has grown significantly in terms of health care reforms. However, complex accessibility of health care and health insurance cost has been a burning issue in this nation since long time. In coming years, the market forces will rectify the deficiencies which subsist in health care system of US and the universal health insurance can be possible.