US Healthcare Systems Chapter 2 Exam Questions and Answers
with Verified Solutions | Latest 2026 Update
Legislative, organizational, and professional developments changed the U.S.
healthcare system from -
Q: one-to-one services to a huge, complex, corporation-dominated industry.
Twentieth-century accomplishments:
Answer:
Prevention of infectious diseases, psychotropic drugs, imaging and cardiovascular
technologies; advancing technology encouraged medical specialization.
Q: ACA's four aims:
Answer:
Consumer protection; higher quality, lower costs; access to affordable care;
holding insurance companies accountable.
Q: ACA's mandates and results will continue to be challenged
Answer:
Experimentation with new delivery models with health services research results
Evolving health care provider and insurance marketplaces
Changing political landscape will determine final results of ACA implementation
Overall -
Q: US Health Care Industry Transformation
Answer:
Until 1940s ( a time referred to as pre-insurance), the healthcare industry was
dominated by physicians and hospitals
Patient/Doctor relationships were considered sacred; treatments, payments
confidential Patient mostly made personal payments
"No third party must be permitted to come between patient and physician in any
medical matter." (AMA, 1934)
A statement put forth during testimony for Social Security Amendment
Q: Shift from Personal Payment to Insurance Payment
, Answer:
With the introduction of health insurance a dramatic alteration occurred in
physician/patient relationship
Patients no longer directly paid for services; services were "covered" by insurance.
This distanced patients from awareness of costs and responsibility for making
decisions for services. Created "business" of medicine
Q: Health Insurance Historical Highlights
Answer:
1800s: Some employer sickness insurance, fraternal orders, unions; fixed payments
partially replaced lost wages due to injuries or illnesses.
1915: Drive for compulsory insurance begun with European models but interrupted
by WWI (1914-1918); models to protect workers from lost income due to
accidents (insured against unexpected events).
AMA officially opposed compulsory insurance (1919), believing insurance would
decrease physician incomes based on experience with arbitrary fees paid by
accident insurance.
Great Depression:
Q: The Start of Hospital Insurance Plans and the growth of US Healthcare
System
Answer:
Hospitals experimented with insurance as financial woes reduced admissions
Baylor University Plan: birth of the Blue Cross Model; public school teachers paid
$.50/month for guarantee of 21 paid hospital days per year
By 1937, 26 plans with 600,000 enrolled with physician and hospital endorsement
Q: Growth of Private Insurance and its Impact on the Healthcare System
Answer:
Post WWII (1939-1945): Government exempted health insurance benefits from
wage/price controls and exempted workers' health insurance contributions from
taxable income.
Insurance companies raised premiums without pressure to control costs
Attention focused on avoiding infringement on physicians' and hospitals' freedom
to set prices
with Verified Solutions | Latest 2026 Update
Legislative, organizational, and professional developments changed the U.S.
healthcare system from -
Q: one-to-one services to a huge, complex, corporation-dominated industry.
Twentieth-century accomplishments:
Answer:
Prevention of infectious diseases, psychotropic drugs, imaging and cardiovascular
technologies; advancing technology encouraged medical specialization.
Q: ACA's four aims:
Answer:
Consumer protection; higher quality, lower costs; access to affordable care;
holding insurance companies accountable.
Q: ACA's mandates and results will continue to be challenged
Answer:
Experimentation with new delivery models with health services research results
Evolving health care provider and insurance marketplaces
Changing political landscape will determine final results of ACA implementation
Overall -
Q: US Health Care Industry Transformation
Answer:
Until 1940s ( a time referred to as pre-insurance), the healthcare industry was
dominated by physicians and hospitals
Patient/Doctor relationships were considered sacred; treatments, payments
confidential Patient mostly made personal payments
"No third party must be permitted to come between patient and physician in any
medical matter." (AMA, 1934)
A statement put forth during testimony for Social Security Amendment
Q: Shift from Personal Payment to Insurance Payment
, Answer:
With the introduction of health insurance a dramatic alteration occurred in
physician/patient relationship
Patients no longer directly paid for services; services were "covered" by insurance.
This distanced patients from awareness of costs and responsibility for making
decisions for services. Created "business" of medicine
Q: Health Insurance Historical Highlights
Answer:
1800s: Some employer sickness insurance, fraternal orders, unions; fixed payments
partially replaced lost wages due to injuries or illnesses.
1915: Drive for compulsory insurance begun with European models but interrupted
by WWI (1914-1918); models to protect workers from lost income due to
accidents (insured against unexpected events).
AMA officially opposed compulsory insurance (1919), believing insurance would
decrease physician incomes based on experience with arbitrary fees paid by
accident insurance.
Great Depression:
Q: The Start of Hospital Insurance Plans and the growth of US Healthcare
System
Answer:
Hospitals experimented with insurance as financial woes reduced admissions
Baylor University Plan: birth of the Blue Cross Model; public school teachers paid
$.50/month for guarantee of 21 paid hospital days per year
By 1937, 26 plans with 600,000 enrolled with physician and hospital endorsement
Q: Growth of Private Insurance and its Impact on the Healthcare System
Answer:
Post WWII (1939-1945): Government exempted health insurance benefits from
wage/price controls and exempted workers' health insurance contributions from
taxable income.
Insurance companies raised premiums without pressure to control costs
Attention focused on avoiding infringement on physicians' and hospitals' freedom
to set prices
