HCISPP · Question #60
The Baylor Hospital plan, started in 1929, laid the foundation for modern health insurance in the U.S. This was a _____ plan.
The correct answer is D. Prepaid. D is correct because the Baylor Hospital plan (1929) allowed Dallas schoolteachers to pay a fixed monthly fee in advance to guarantee up to 21 days of hospital care per year - the defining characteristic of a prepaid plan, where you pay before services are rendered regardless…
Question
The Baylor Hospital plan, started in 1929, laid the foundation for modern health insurance in the U.S. This was a _____ plan.
Options
- AManaged care
- BContributory
- CComprehensive
- DPrepaid
How the community answered
(41 responses)- A2% (1)
- B2% (1)
- D95% (39)
Explanation
D is correct because the Baylor Hospital plan (1929) allowed Dallas schoolteachers to pay a fixed monthly fee in advance to guarantee up to 21 days of hospital care per year - the defining characteristic of a prepaid plan, where you pay before services are rendered regardless of whether you use them.
Why the distractors are wrong:
- A (Managed care) refers to systems like HMOs that control costs by coordinating care and restricting provider networks - a much later concept not present in 1929.
- B (Contributory) describes an employer-sponsored plan where both employer and employee share premium costs - the Baylor plan had no employer component.
- C (Comprehensive) describes broad coverage across many service types; the Baylor plan covered only hospital services, making it narrow, not comprehensive.
Memory tip: Think "Pre-pay before you play" - the Baylor plan was essentially a subscription for hospital care, paid upfront, which is why it's the grandfather of modern insurance and why Prepaid is the answer.
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