Question

In: Operations Management

a. Describe the two main types of medical institutions that existed in preindustrial America b. Why...

a. Describe the two main types of medical institutions that existed in preindustrial America

b. Why did health insurance in the U.S become employer-based government mandates?

Solutions

Expert Solution

a. Describe the two main types of medical institutions that existed in preindustrial America.

Almshouse was an infirmary, old aged facility, metal asylum, homeless shelter and orphanage all rolled into one institution. Dispensaries were established as outpatient clinics to provide free care to those who could not afford to pay.

b. Why did health insurance in the U.S become employer-based government mandates?

U.S Congress imposed wage freezes in an attempt to control wartime inflation. Employees accepted employer-paid health insurance to compensate for the loss of raises. 1948 Supreme Court ruled that employee benefits were legitimate part of union-management negotiations. 1954, Congress amended the internal revenue code to make employer-paid health coverage nontaxable.


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