The dental benefits industry rapidly grew from the blossoming health insurance industry. Ideally, we can better appreciate the dental benefits market by getting much more familiar with the roots of its and natural progression.

Health insurance began to appear in the United States around 1850 and yes it just offered rewards to those who were disabled by accidental injury.5 Benefits for medical treatment did not start to present themselves until 1910, and coverage for hospital, surgical, medical and nursing care costs began in 1930.5 The first health insurance models were traditional fee-for-service plans (also also known as indemnity insurance programs). They were rapidly followed by numerous prepaid health programs, deemed the precursors to today's managed care insurance models such as overall health maintenance organizations (HMO) and also preferred provider organizations (PPO).

The very first instance of managed care insurance came about in 1917 in Tacoma, Washington when the Western Clinic began providing the lumber industry with prepaid physician services.6 In 1929, Dr. Justin Ford Kimball was a key player in establishing the Blue Cross manufacturer by announced a prepaid hospitalization plan for localized teachers sponsored by Baylor Hospital in Texas.6 The Blue Shield program was adopted in 1939 for participating prepaid doctor plans.6

One of the pioneers accountable for making quality healthcare as well as insurance available to Americans was industrialist Henry J. Kaiser. In 1938, Kaiser recruited Dr. Garfield to help create prepaid clinic and hospital care for his Grand Coulee Dam project.6 In 1942, Kaiser and Dr. Garfield established a prepaid healthcare program for the employees of Kaiser shipyards and Kaiser steel mills which helped popularize health maintenance organizations.7 Kaiser Permanente remains prominent in the HMO insurance market to this particular day.3

By 1949, there have been eighty one Blue Cross hospital plans and 44 Blue Shield health-related insurance plans, covering a total of twenty four million Americans.6 Blue Cross corporations and Blue Shield insurance plans covered 52 million and 40 million Americans respectively by 1959.6 After merging, Blue Cross Blue Shield jointly covered 87.4 million Americans by 1979.6 So Blue Cross Blue Shield, among present day top insurance providers, was very important in the first managed care insurance movement.

Benefits expanded as well as enhanced in the 1950s as conventional fee-for-service health insurance plans flourished and coverage expanded to include other expenses, including vision care.3 Most insured people have been protected by either Blue Cross Blue Shield or by individual industrial insurance companies in this particular time.3 Despite this improvement, the 1960s as well as 1970s brought about a tumultuous time for the health insurance sector.

The word "Health Maintenance Organization" was coined in 1970 by Paul Ellwood, who was instrumental where to buy prodentim promote the Maintenance Organization (HMO) Act.6 HMO insurance came around as the insurance marketplace altered to employers' and individual consumers' concerns along with the excessive premiums connected with traditional indemnity insurance.

After debating various costs for a national health insurance program in the 1960s and 1970s, Congress passed the Maintenance Organization Act in 1973.6 This Act provided grants to businesses which implemented HMO insurance - regarded as cost-effective options to individual doctors and hospitals - and properly encouraged companies to offer their employees with health and fitness benefits.