Question

True/Flase:

a. The Bismarck Model in Germany reduces adverse selection primarily by having a universal, compulsory health insurance system

b. it reduces moral hazard by requiring cost-sharing

c. it controls costs by reducing health insurance choice.

d. it controls costs by allowing private insurers to negotiate competitive rates with private physicians.

e. The health care system in the U.S. and the Bismarck Model in Germany both rely mostly on private health plans for insurance coverage

f. The health care system in the U.S. offers greater physician and insurer choice than the Bismarck system in Germany system

Answer 1

The Bismarck model of health insurance covers all individuals under the health insurance coverage which is funded jointly by employers and employees through payroll deductions.

A) True

B) True

C) True

D) False (negotiation is not allowed)

E) True (the only difference is that the Bismarck model covers all individuals with no except)

F) False (it is the opposite)