The other day I read a very interesting article from NPR, and I thought I’d share some of the information I learned with you. The article itself was quite refreshing to read, for rather than scrutinizing the current political debate, it addressed the actual origin of our nation’s current health care system.

Insurance truly began in the late 19th century in the form of “accident insurance.” The Franklin Health Assurance Company of Massachusetts began offering insurance for injuries derived from railroad and steamboat accidents.

As modern medicine progressed in the early 20th century, hospitals wanted to change their image from one where people went to die to a place to have babies. As a result, the Baylor University Hospital in Dallas initiated a plan that offered services on a pre-paid basis. At first they offered the deal to a group of teachers who would pay 50 cents a month in exchange for Baylor covering medical expenses. In fact, Baylor eventually developed into Blue Cross.

According to the article, World War II era was a crucial turning point in health insurance, and really developed the system we see today. During World War II, goods were rationed by the government, and with increased production required by a war economy, businesses needed a way to attract employees. Offering health benefits was the primary technique used. This was also seen in the mining industry where employers offered benefits to keep their workers from striking.

Around the same time, laws were established that ruled employer-based health care to be tax free. And by the 1960’s, having a good job became directly associated with receiving quality health care.