ABSTRACT
Two major types of private health insurance institutions exist in the United States: the “nonprofit” tax-exempt Blue Cross and Blue Shield, and the commercial insurance companies. Although commercial insurance companies had begun to insure people against sickness in the 19th century, private health insurance only became a major industry during the Depression. Commercial insurance companies did not become important in the health field until after World War II, when the Blues were already well established. Commercial companies were successful in capturing a large share of the union health insurance market because of the way they can set premium rates. Private insurance advocates claim that deductibles, uncovered, and partially covered care prevent the consumer from “overusing” health facilities. For an insurance company, illness is not a frightening and uncomfortable experience, it is a golden opportunity. Insurance companies generally make patients pay part of the costs of services.
