The Evolution of Health Insurance in Austin

According to the Bureau of Labor Statistics, a study conducted on 211 families living in Columbus and Ohio in 1918 revealed that people spend 7.6% of their total income on medical expenses. Another report prepared by the State of Illinois revealed that the loss of wages due to sickness was four times more than the medical expenditure. This is what led more and more people to opt for sickness insurance instead of health insurance. But this was just the beginning of health insurance in Austin . In years that followed, health insurance in Austin became increasingly popular. This article talks about the various developments that made health insurance popular.

Important Stages of Health Insurance Development in Austin

Here are the crucial stages in the development of health insurance in Austin:
 
1.Insurance companies’ initial reluctance to offer health insurance: Health insurance did not get off to a very good start, mostly due to the negligent approach of insurance providers. The reason for this approach was the lack of accurate information regarding the calculation of premiums. Another fear for insurance providers was an increase in  moral hazards. They thought people might get involved in more risky activities in order to fake claims. Until 1920, the idea of health insurance was not fully acceptable to insurance companies.

2.Failure to make health insurance policies nationalized: In 1920, the American Association for Labor Legislation (AALL) attempted to nationalize health insurance but  failed. The basic reason for this failure was the lack of legislative support. Physicians and medical professionals thought that government intervention might limit their chargeable fees. Also, pharmacists unanimously opposed such government plans because they feared  the nationalization of health insurance in Austin would ruin their business.

3.Increase in demand for medical care: With the beginning of urbanization, the population density in the cities started increasing. Now, people had better opportunities and regular sources of income. In the cities, the trend of saving money for future needs made people live in less healthy and hygienic conditions. People were more concerned about the future than living in the present. This careless approach toward self care led to an increase in medical expenses. With urbanization, health insurance in Austin began to gain importance once again.
 
4.Rise in medical expenses: By now, the medical field entered a period of revolutionary advancements and discoveries. Doctors succeeded in finding treatments for many incurable diseases. With modern surgical technologies, even the most complex surgeries were now results-oriented. Life expectancy increased considerably. People were ready to pay huge sums of money for the treatment of themselves and their loved ones. According to a report released by the Committee on the Costs of Medical Care (CCMC), total medical expenses reached $108 for the average American prior to 1928. The idea of health insurance in Austin was therefore achieving greater acceptance and gaining ground with many insurance providers. 
 
Government intervention further strengthened the market for health insurance in Austin. In many states, the US government allowed policies under which taxes due by an employer were considered in the employee health insurance plans. By the end of 1960, private health insurance had fully developed in the United States.