One Hundred Years of Medical Fascism

Not only was Abraham Flexner not even an allopathic physician; he was not a widely known authority on education, never mind medical education, as he had never even seen the inside of a medical school before joining Carnegie.

Regardless of these scandalous circumstances, state medical boards and legislatures used the report as a basis for closing medical schools.

Already in existence for ten years, Blue Cross had begun as a hospital insurance plan for Dallas school teachers that allowed them to pay for up to three weeks of hospital care with low monthly payments.

By 1950, Blue Cross held 49 percent of the hospital insurance market, while Blue Shield held 52 percent of the market for standard medical insurance.

Unlike genuine catastrophic hospital insurance that placed premiums in growing reserves to pay claims, the new Blues' "Insurance" collected premiums that only covered expected costs over the following year.

The decision by the federal government to allow large-employer benefits to be obtained tax-free while effectively taxing plans purchased by small businesses and the self-employed created a system where medical insurance became not only perversely tied to the size of a worker's employer but to employment itself.

The Health Maintenance Organization Act of 1973 made federal grants and loans available to HMOs, removed certain state restrictions if HMOs became federally certified, and required employers with 25 or more employees who offered standard health insurance benefits to offer federally approved HMO plans.

https://mises.org/library/one-hundred-years-medical-fascism