Definition And Analysis Of Concept Of Insurance Essay
The term insurance is traditionally defined as the exchange of resources for protection against disasters or medical issues. Insurance was invented as a means of protecting individuals against bankruptcy due to property or loss in healthcare. In regards to healthcare, insurance offers individuals access to healthcare at a reduced cost. Insurance is a beneficial tool which reinvented the American healthcare system at various times.
Origin and Background The word insurance was developed through an Old French term enseuer which is defined as making sure an event or moment occurs. The origin of insurance as a healthcare term was introduced in the 17th century and it is derived from Middle English. The term insurance has evolved from an action to a contractual agreement which requires payment in return of services. The advancement of healthcare led to the invention of insurance which would ensure access to individuals who were willing to pay the premiums. Additionally, the most famous insurance programs Medicaid and Medicare revolutionized the healthcare industry. More recently, the Affordable Care Act introduced another governmental program which provided insurance through reduced premiums and different levels of coverage.
Major Characteristics One of the major characteristics of insurance in American healthcare is the availability through the private and public sector. Individuals have the option of buying…