With all the debate on Capital Hill about health care and everyone worrying where you can get cheap term life insurance rates and health insurance rates, it made me wonder when did health insurance first start in this country?

In the late 19th century, accident insurance was first available based on a concept proposed in 1694 by Hugh the Elder Chamberlen. This insurance was similar to what we now call disability insurance. In the United States, accident insurance was first provided by Franklin Health Assurance Company of Massachusetts founded in 1850. By 1866, over sixty organizations offered accident insurance. These companies soon consolidated to make bigger insurance companies.

Sickness coverage began in 1890 for individuals and the first company sponsored group policy was issued in 1911.

Before medical insurance, each patient was responsible for 100% of their health care costs. Early disability insurance only covered if the person became disabled and could not work, Some hospitals began over services to individuals on a pre-paid basis in the 1920s. This was the start of the Blue Cross organizations. In 1929, groups similar to HMOs were started and were popular through World War II.

Health insurance that is similar to what we know today that covers all or part of the cost of doctors visits, prescriptions, hospital care and emergency care was not in full form until the mid 20th century.