Government intervention into nearly every aspect of our lives is so common that people often lose sight of how things would operate absent the intervention. Furthermore, people seem to be convinced that government really is the answer when it comes to medical care...
Until the post–World War II era, medical services were pay-as-you-go affairs. Those who could not afford the best care depended on charity hospitals or doctors who were willing to stretch out the payment structure. In other words, people purchased medical care the way that they purchased most other goods: directly and in close relationships with those people who provided the services...
... during World War II, when the government had strict wage-price controls... could not offer higher pay in order to attract workers. Thus, they turned to providing tax-free “benefits” such as health insurance... For the most part, employers offered insurance plans... to provide protection from catastrophic illnesses or accidents. The idea at that time that an insurance company would pay for regular doctor visits and the like was seemingly far-fetched...
... health insurance as a means of increasing de facto income without increasing tax liability became increasingly popular...
Socialism and Medicine, Part 1
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