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Evolution of Health Insurances

We all know that Medical health insurance pays for the medical expenses but now the question is what type of medical expenses it covers. Here you have to look at the slow revolution of this type of insurance. From the beginning to the modern day this health insurance policy has experienced lots of changes and experimentations with itself. When we study these changes then we can find out the answers of our questions.

These days the term health insurance is used in a much broader concept as it was earlier. Now sometimes the health insurance also covers disability costs and also long-term nursing and custodial care if it is needed. Medical insurances are provided by government or government-sponsored social insurance program as well as private insurance companies. In every case the policy holders are needed to pay its premiums and taxes. And the health care policies will benefit them when the policy holders need them. The health care policies help protect themselves against the high and unexpected health care costs.

Let us now have a look at the history of the health insurance plans. It was Hugh the Elder Chamberlen from the Peter Chamberlen family, who was the first one to propose about the health care insurance plans in 1694. And perhaps the accidental insurance was the first among the health insurance policies first launched during the late 19th century. This was something like the modern disability insurance. This type of policies continued till the start of the 20th century. The accidental insurance was first launched in the United States by the Franklin Health insurance Company of Massachusetts, which was founded in 1850. They offered insurance against the injuries from accidents caused by railroads and steamboats. Soon after, by the year 1966, about sixty companies were found to be offering accidental insurance in the United States. However, the main drawback was that other than the accidental insurance the Medicare beneficiaries were to pay for all other medical costs. Later during the late 20th century begins the start of the modern health insurance programs. And gradually it evolved and the present day Medicare policies cover a lot more things like preventives, emergency health care procedures, prescription drugs and others.

Now beside Medicare policies there are also Medigap policies which can be called Medicare Supplement Plans. The Medicare Supplement Plans or the Medigap policies are supplementary health insurance policies that are sold by the private insurance companies. These policies are not completely independent but actually they are invented as a supplement to the original Medicare insurance. These are closely related with the Original Medicare.

The purpose of the Medicare Supplement Plans is to fill up the gap between the policy coverage of the Original Medicare plans and the actual medical bill payable. That is a reason why these policies are also known as the Medigap plans. However, though these plans are totally administered and sold by the private insurance companies still there are only 12 standard plans under the letter heads A through L that they are permitted to sell.

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