HSA 4321 Lecture Notes - Lecture 1: Contributory Negligence, Disability Insurance, Federal Home Loan Banks
Chapter 1- History of Health Insurance in the United States
Prehistory
- Industrial Sickness Funds
o Voluntary fraternal, employer, or union funds that typically requires a
peiu eualig % of ages.
▪ Withheld from wages or collected by coworkers on payday
o People applied for membership
▪ Older age limits, medical examination, and waiting period of several
weeks not uncommon
o When ill, one notified the fund
▪ Visiting committee to assess ability to work
▪ Few days waiting period, often 60% of wages paid
o Earliest funds date from the Civil War
o Fist suey y fedeal go’t estiated soe ,5 ofateal fuds i
o By the 1908-1917 period roughly 20% of workers were in a sickness fund.
- Wokes’ Copesatio Isuae
o Employers were liable for workplace injury, but the worker had to show that the
employer was negligent.
o Employer had three defenses:
▪ Worker had assumed the risk
▪ Coworker caused the accident
▪ Contributory negligence
o 1910 to 1915
▪ 32 states enact legislation
▪ Employer buys coverage and accepts full liability
▪ Eploye etais defeses if he uys okes’ op.
- Wokes’ Copesatio Led to Othe Iitiaties
o American Association of Labor Legislation Health Insurance Proposal:
▪ Cover all manual laborers with income of less than $100 per month
▪ Cover medical bills and some income continuation
▪ Compulsory contributions from employee, employer, and the state.
▪ Those not in groups could join voluntarily
▪ Disability insurance included
o 1916 to 1919
▪ 16 states consider the legislation- none adopt it.
- 1912 to 1920s: Supporters and Opponents
o Organized labor had a mixed position
▪ Some supported the proposal
▪ Samual Gompers (AFL) was opposed. Workers knew how to spend their
money; the role of the union was to get them more money to spend.
▪ Viewed as a ploy to increase physician and hospital prices.
o Workers often ignore or opposed the proposed legislation due to existing
cheaper coverage in the industrial sickness funds.
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Document Summary
Chapter 1- history of health insurance in the united states. Wo(cid:396)ke(cid:396)s" co(cid:373)pe(cid:374)satio(cid:374) i(cid:374)su(cid:396)a(cid:374)(cid:272)e: employers were liable for workplace injury, but the worker had to show that the employer was negligent, employer had three defenses, worker had assumed the risk, contributory negligence. Coworker caused the accident: 1910 to 1915, 32 states enact legislation, employer buys coverage and accepts full liability, e(cid:373)ploye(cid:396) (cid:396)etai(cid:374)s defe(cid:374)ses if he (cid:271)uys (cid:449)o(cid:396)ke(cid:396)s" (cid:272)o(cid:373)p. 1912 to 1920s: supporters and opponents: organized labor had a mixed position, some supported the proposal, samual gompers (afl) was opposed. Growth of hospital plans: 1932, sacramento, ca- all-hospital plan, 1933, some 26 plans in operation, newark and essex county, nj, cleveland, oh, st. paul, mn. Aha committee on hospital service: aha began approving plans in 1933: Improve public welfare: nonprofit, dignified promotion, cover hospital charges only, free choice of physicians, no competition among plans (1937) Hospital service plans as insurance: most states viewed plans as prepayment of hospital costs, not as insurance.
