Why Does Health Insurance Exist?

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One response to “Why Does Health Insurance Exist?”

1. 

   April 8, 2013

   Bob Vineyard

   Health insurance came into being to help pay for catastrophic (large) medical claims. Initially health insurance plans only covered inpatient hospital stays. Over time some medical care that could only be handled as an inpatient became available on an outpatient basis.

   Also, new prescription drugs were developed to treat illness that earlier had been considered incurable. As these new (and quite expensive) drugs came on the market health insurance was expanded to cover outpatient services including Rx, extensive diagnostic testing such as MRI and CT scans and outpatient surgery.