Health insurance in the United States
Overview
Health insurance in the United States is a complex system that involves a variety of public and private entities. It is primarily provided by private insurance companies, although public programs such as Medicare and Medicaid also play a significant role. The health insurance system in the United States is unique among developed countries, as it does not have a universal healthcare system.
History
The concept of health insurance in the United States began in the early 20th century, with the establishment of employer-sponsored group health insurance plans. The first such plan was created by the Baylor University Medical Center in 1929. The idea quickly spread, and by the 1950s, employer-sponsored health insurance had become the norm.
Types of Health Insurance
There are several types of health insurance available in the United States, including employer-sponsored insurance, individual market insurance, and government-provided insurance.
Employer-Sponsored Insurance
Employer-sponsored insurance is the most common type of health insurance in the United States. Employers often cover a portion of the insurance premium and the employee pays the rest. These plans are often preferred due to their lower cost compared to individual market insurance.
Individual Market Insurance
Individual market insurance is purchased directly from an insurance company by the individual. These plans are often more expensive than employer-sponsored insurance, but they can be a good option for those who are self-employed or who do not have access to employer-sponsored insurance.
Government-Provided Insurance
Government-provided insurance includes programs such as Medicare, Medicaid, and the Children's Health Insurance Program (CHIP). These programs are designed to provide coverage for certain groups of people, such as the elderly, low-income individuals and families, and children.
Health Insurance Coverage
Health insurance coverage in the United States is not universal. As of 2019, approximately 8.5% of the population, or 27.5 million people, did not have health insurance at any point during the year.
Access to Health Insurance
Access to health insurance in the United States can be influenced by a variety of factors, including employment status, income level, and age. Those who are employed full-time are more likely to have access to employer-sponsored insurance, while those with lower incomes may qualify for government-provided insurance.
Cost of Health Insurance
The cost of health insurance in the United States is a major concern for many individuals and families. The average annual premium for employer-sponsored health insurance in 2019 was $7,188 for single coverage and $20,576 for family coverage.
Health Insurance and the Law
There have been several significant pieces of legislation related to health insurance in the United States, including the Patient Protection and Affordable Care Act (ACA) and the Health Insurance Portability and Accountability Act (HIPAA).
Patient Protection and Affordable Care Act
The ACA, also known as Obamacare, was signed into law in 2010. It made several significant changes to the health insurance system, including prohibiting insurance companies from denying coverage or charging higher premiums based on pre-existing conditions, and requiring most individuals to have health insurance or pay a penalty.
Health Insurance Portability and Accountability Act
HIPAA, enacted in 1996, includes provisions designed to protect health insurance coverage for workers and their families when they change or lose their jobs. It also includes provisions to protect the privacy and security of health information.