The precursor to our modern health insurance system began in the 1920s when hospitals began to offer services on a pre-paid basis. What is widely considered the first employer-sponsored plan started with a group of teachers in Dallas.
What were the earliest forms of health insurance?
The earliest form of health insurance (as opposed to life insurance) was "accident" insurance, which typically paid a specific, pre-determined amount to the policyholder if an accident occurred. This was the sole type of insurance available in the United States until the mid-1800s.
How did employer provided health insurance begin in the US?
Employer-based healthcare came out of a market-driven response by employers after World War II. It grew out of a strong economy, low unemployment rates, and intense competition for talent.