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Health Care

Fundamentals Of Reimbursement In Healthcare And Its History

It is evident that the field of healthcare come up with many steps of evolution. It is crucial to mention that the facet of healthcare facilities has improved and expanded over the years. These particular features of development can be observed in the different sub-areas of health services. The quality of the healthcare sector is gradually improving due to the different facets of development. Different approaches and strategies are adapted to align the facets of healthcare facilities with the changing paradigm of society as a whole (Preskitt, 2008). The prospects for the development of the healthcare sector can be identified in the different forms of evolution in the case of the overall paradigm of the patient-centered approach to effective care. Here, the focus is to determine the three major developments in healthcare history with the consideration of the fundamental feature of reimbursement in the healthcare sector.

It is crucial to understand that there are a number of historical developments that effectively provide assistance in regulating the features of insurance in the health sector in the country. The existence of different insurance reforms helps the sector adopt an effective approach to reimbursement by considering the crucial needs of the health and care services for the patients. Following are the major historical events or developments that play a crucial role in the overall paradigm of the healthcare industry.

1915: The American Association of Labor Legislation (AALL)

This particular form of the American Association of Labor Legislation (AALL) is crucial as it initiates the specific model of health insurance bill for the health sector. The focus of this development is to effectively provide health services to the working class of the country. The facet of this particular health development comes with the consideration of the specific class of society referring to the different health issues. The main objective of this event is to provide necessary assistance to individuals who have an income of less than $1,200 a year with the help of the paradigm of insurance. It can be considered a crucial event in the history of healthcare development as it initiates the necessary approach to health insurance in the case of the working class of the country.

1916- FECA

The Federal Employees’ Compensation Act (FECA) is an example of another historical development that played a crucial role in the evolution process of the healthcare industry. It is crucial to mention that this particular Act replaces the existing form of the workers’ compensation legislation of 1908. The aim of the FECA Act was to provide the necessary facilities to the employees in the form of medical care, survivors’ benefits, and an effective approach in the form of compensation.

1996- HIPAA

The HIPAA initiative is known to have made an effective contribution to the overall insurance facet of the health sector in the country. HIPAA is the abbreviation of the Health Insurance Portability and Accountability Act. The main focus of this particular Act is to regulate the paradigm of administering the health policy. This particular act of HIPAA requires proper consideration of features of privacy and security concerning effective healthcare standards (Annas, 2003). This particular health development can be considered crucial in the case of the overall evolution of the health industry as it comes up with the proper implementation of standards of electronic transactions. The objective of this type of intervention in the health sector is to avoid the issues of fraud and abuse in the case of health insurance. It can also be considered an effective approach to overcome the facet of cost in the case of managing the features of health and care in the country.


Annas, G. J. (2003). HIPAA regulations-a new era of medical-record privacy? New England Journal of Medicine, 348(15), 1486–1490.

Preskitt, J. T. (2008). Health care reimbursement: Clemens to Clinton. In Baylor University Medical Center Proceedings (Vol. 21, pp. 40–44). Taylor & Francis.



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