Chapter 3

Question 1

describe the general rise of private health insurance

Answer 1

initially created as an income protection entity, to protect from financial strain from treating illness and temporary disases…

hospital and physician services were initially separate, but were combined by BCBS (private insurance), and then economic conditions during WWII prompted the creation of employer-based health insurance, in order to attract workers who were suffering from wage freezes

Question 2

describe the creation of medicare/medicaid

Answer 2

before 1965, most health insurance was private and was only affordable to middle/high class citizens… low-income citizens and elderly were suffering… elderly paying almost 3x as much for insurance… federal (medicare) and state (medicaid) gov’t implemented public health care so individuals can be covered…. subsidizing private health care… lower rates, physicians less likely to accept

Question 3

what were the prototypes of managed care?

Answer 3

contract practice (which created capitation), prepaid group plans, group practice