Institute: ONC | Component: 1 | Unit: 4 | Lecture: a | Slide: 10
Institute:Office of National Coordinator (ONC) Workforce Training Curriculum
Component:Introduction to Health Care and Public Health in the U.S.
Unit:Financing Health Care - Part 1
Lecture:The history of the health insurance industry in the U.S.
Slide content:Early Commercial Health Insurance 1940s: Commercial Insurance Compete against the Blues Employer (group) enrollment spread risk and addressed moral hazard Experience rating vs. community rating 10
Slide notes:During the 1940s, commercial insurance carriers noted the growth of these hospital and physician Blue plan associations, and began to offer group health insurance . Conditions that supported the movement into this arena included providing insurance for large groups of employees, which spread the risk and helped address some of the moral hazard associated with health insurance . In addition, commercial carriers could adjust their rates based upon the age of the group members and their payment experience, whereas the hospital association plans offered community rating, the same price for any insured person. 10