READING INSURANCE POLICY

READING INSURANCE POLICY

    Most of us who are familiar with the concept of health insurance have a health insurance policy in some form or another. It allows us to enjoy proper health care and emergency care without having to worry about paying huge amounts of money to a hospital or doctor. But how many of us have ever stopped to wonder how it all began? The idea of paying monthly or annual fees to cover the cost of our ailments appears to be a modern one. However, there is indeed a long history behind it.

Believe it or not, the original idea of health insurance came about in 1694. It was created by Hugh Chamberlen. By the early 1800s, people were able to buy accident insurance, which enabled those who were injured or permanently disabled in an accident to gain some form of compensation. This earliest form of health plan was not very useful as it only offered compensation if the victim was injured due to an accident such as on a steamboat or train. However, there were injuries related to many other mishaps at that time. Eventually, more comprehensive types of plans that covered a wider range of accidents and diseases were developed by insurance companies.

     In 1847, the Massachusetts Health Insurance of Boston offered the very first group insurance policy, complete with comprehensive benefits. By the 1890s, insurance companies were starting to issue individual policies that covered everything from injuries and accidents to sickness and disease. However, group insurance plans as we know them today did not start until 1929. In that year, a group of teachers came up with an idea to create their own plan. They approached Baylor Hospital in Dallas, Texas and negotiated a deal in which they would pay a monthly fee in exchange for medical attention and recovery care whenever needed by any member of the group.                      

       The idea was such a success that soon after Blue Cross health plans were designed. These were health plans that were negotiated exclusively with the local hospitals or individual doctors. The health plans worked very well and by the 1940s, it was clear that more comprehensive forms of health insurance were necessary. This was because some people could not afford the monthly fees, but were still in need of the protection only afforded by having insurance. So this gave rise to employee health insurance. Employers negotiated a deal for their workers and as long as they worked in a specific workplace, they were covered by their health plan.

     Then, in the 1950s and 1960s, the United States government began to look into health care and social security. It included disability insurance in 1954. Medicare and Medicaid were both created in the mid-1960s. By the 1990s, most Americans were enroled in a managed health insurance programme. While minor changes have been made in the years since then, the basic premise has remained intact. Today, it is even more important to have some form of health insurance, especially with escalating health care costs. It is, therefore, obvious that health insurance has come a long way since the days of steamboats and trains.

(Adapted from Where Does Health Insurance Come From?, 7 January 2009)

Multiple Choice

Health insurance is not commonly known among those

• who do not have a health insurance policy

• who have a health insurance policy

• who enjoy good health

• who are always ill

Multiple Choice

The following are mentioned in the passage except

• accident insurance was available in the 1800s

• the idea of health insurance is more than 300 years old

• health insurance policies require us to pay money on a regular basis towards

  our healthcare

• if we do not have a health insurance policy, we will worry about the payments

  when we fall ill

Multiple Choice

Imagine it is 1800s. You had bought an insurance policy to protect yourself. When you became seriously ill, you required medication and hospitalisation. After you recovered, you decided to claim compensation for your illness from the insurance company. How did the company respond?

• They compensated you fully for the expenses you had incurred.

• They refused to compensate you because it was not an accident

• They compensated you partially for the expenses you had incurred

• They refused to compensate you because you had not made your monthly

  Payments.

Multiple Choice

The phrase The idea (line 26) refers to

• Blue Cross health plans

• the Baylor Hospital health insurance plan

• the group insurance plan suggested by a group of teachers

• medical attention and recovery care whenever needed by any member of the

  group for a monthly fee

Multiple Choice

The employee health insurance was started in the 1940s because

• it was cheaper to have group insurance

• employers were concerned about their employees' health

• employees could enjoy insurance benefits even when they move from one work place to another

• many employees could not pay the monthly instalments, but still needed protection through insurance

Multiple Choice

With reference to paragraphs 3 and 4 which of the following statements is not true?

• The 1929 group insurance plan is not similar to the group insurance plan we

  have now

• Individual, group and employee health insurance policies are three types of

  plans mentioned

• The health insurance plan in the 1890s was more comprehensive than the one

  in the early 1800

• Employees who can ill afford a health insurance plan can get protection through

  the employee health protection plan

Multiple Choice

Health insurance has become a necessity now because

• health insurance plans have become more comprehensive

• Americans like to enrol in health insurance programmes

• health care has not changed much over the years

• expenses for health care have increased sharply

Multiple Choice

The writer is ______________________ health insurance plans

• not in favour of

• neutral about

• in favour of

• unsure of