<P> Accident insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts . This firm , founded in 1850 , offered insurance against injuries arising from railroad and steamboat accidents . Sixty organizations were offering accident insurance in the US by 1866 , but the industry consolidated rapidly soon thereafter . While there were earlier experiments , sickness coverage in the US effectively dates from 1890 . The first employer - sponsored group disability policy was issued in 1911 , but this plan 's primary purpose was replacing wages lost because the worker was unable to work , not medical expenses . </P>
<P> Accident insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts . This firm , founded in 1850 , offered insurance against injuries arising from railroad and steamboat accidents . Sixty organizations were offering accident insurance in the US by 1866 , but the industry consolidated rapidly soon thereafter . While there were earlier experiments , sickness coverage in the US effectively dates from 1890 . The first employer - sponsored group disability policy was issued in 1911 , but this plan 's primary purpose was replacing wages lost because the worker was unable to work , not medical expenses . </P>
when did health insurance start in the united states
when did health insurance start in the united states
1890
1890