Before the Affordable Care Act, millions of Americans went without health insurance. For their uninsured medical expenses, many relied on medical financing.

Medical Financing In The Past

For decades, unexpected medical costs and other expenses not covered by health insurance have plagued Americans. Luckily, healthcare financing was a viable option for many who sought help paying for expensive medical bills.

A Brief History of Health Insurance

To fully understand the evolution of medical financing, it is necessary to know where the concept of health insurance originated. The idea began in the form of accident insurance in the 1850’s. These primitive insurance companies covered injuries that arose as a result of railroad or boat accidents. This industry, however, soon dissolved.

In 1911, America saw its first employer-sponsored disability policy, though the goal was to pay wages during an injury, not to cover medical expenses. As such, until the mid 1900’s, families simply relied on a fee-for-service model: paying doctors directly for each individual service. In the 1930’s, however, there were some options to pre-pay for medical expenses at certain hospitals. During that time, President Roosevelt explored the idea of a national health insurance program, but ultimately vetoed the idea.

During WWII, when wage control was in full swing, employers began to offer fringe benefits, such as medical insurance, to attract workers. Again, during this time, President Truman explored the idea of national healthcare, but the idea was again vetoed. As the fee-for-service model went on, more and more labor unions lobbied employers for healthcare coverage, and by the end of the 1950’s, many Americans had at least some form of healthcare coverage.

Many unemployed or self-employed individuals, as well as those whose employers didn’t offer health insurance, still did not have adequate coverage. For these individuals, the fee-for-service model was in effect until quite recently.

The Development of Healthcare Financing

During its inception, healthcare coverage had left some significant gaps in services for those who were enrolled. Often, dental care, certain medical facilities, and many procedures were not covered. Additionally, at the time, health insurance was not mandatory, leaving millions of Americans without coverage. Additionally, until recently, coverage could be denied for those with pre-existing conditions. Those who become ill during coverage or who reached monthly maximums could even be kicked off of their plans.

For those individuals who did not have adequate coverage (and for those who did not have any coverage at all), financing institutions began offering medical expense loans. Whether the patient needed coverage for a dental implant, cosmetic surgery, or even a lifesaving procedure, many turned to healthcare financing institutions for help. Until recently, the field of healthcare financing was large, until some big firms stopped offering this necessary funding during the recession.

If you or a loved one are in need of a medical loan or healthcare financing, Healthcare Finance Solutions is here for you. We can work with you and your provider to offer you a low interest loan that meets your individual needs.