Modern Health Insurance Model


There are various terminologies that are used in health insuranceand which are at times confusing in terms of what their similaritiesor differences are. Such terms include group health insurance and theindividual health insurance plan (Green, 2015). The individual healthinsurance plan occurs when an individual pays for his or her ownhealth insurance. The health plan is not paid for by the employer norany association. It is useful to note that individual healthinsurance plans are more expensive than the group health insuranceplans (Green, 2015). On the other hand, the group health insuranceplans paid for by the employer for a group of employees. The plan issaid to be cheaper since the risk is spread across the members.

It is hard to believe that there was a time when there was no healthinsurance. A simple idea a century ago changed the way people accesshealth services (Green, 2015). Health insurance has developed overyears until recently in 2014 when it was made mandatory for everyAmerican to have health insurance under the Affordable Care Act(ACA), which was signed into law in 2010. As early as 1946, congresswas thinking about lowering the cost of health services to the people(Green, 2015). The passing of the Hilton-Burton Act enabled thegovernment to give hospitals and nursing homes funds in form ofgrants and loans for construction and modernization. These healthinstitutions were required to offer free and subsidized services tothe people residing near the facilities (Green, 2015). This went oneuntil 1997, but it useful to state that there are still some healthfacilities that are required to offer health services at reducedcosts. The HMO Act of 1973 also sought to enhance the delivery ofquality services to the people. The Act changed the previous HMOsfrom non-profit organizations to for-profit organizations and allowedthem to contract individual physicians at a fee to provide servicesto the people.


Green, M. A. (2015).&nbspWorkbook to accompany understandinghealth insurance: A guide to billing andreimbursement. Stamford, CT: Cengage Learning.