FPM L1 (Insurance Models) questions
with 100% correct answers
Provider - correct answer ✔✔Person/Place that can provide healthcare eg Hospitals, nurses, etc.
Payer - correct answer ✔✔Entity that assumes risk of paying for medical treatments like individual,
employer, insurance, etc.
Beveridge Model - correct answer ✔✔Socialized Medicine
Government is Sole Provider AND payer, financed by income taxes, and costs are low. Everything is
regulated and under the government including employees
Ex: UK, Cuba, VA
Bismarck Model - correct answer ✔✔Social Health Insurance
Universal Coverage funded by payroll taxes, multiple providers AND payers.
Costs low cause of tight gov regulation of both provider and payers. Providers are private but regulated
(non profit also)
Germany, Japan, France, Netherlands, and Obamacare
National Health Insurance Model - correct answer ✔✔Combination: Universal coverage; multiple
providers but government is sole payer
Health insurance funded by taxes and payroll deductions, providers private but tightly regulated
low costs (government regulated), but limited service offered and long wait times
Canada, South Korea, Medicare and Medicaid follow this
Out of pocket model - correct answer ✔✔No money, no care, not universal
Rural areas of India China, South America, US (don't qualify for medicaid but don't have enough for
commercial insurance)
with 100% correct answers
Provider - correct answer ✔✔Person/Place that can provide healthcare eg Hospitals, nurses, etc.
Payer - correct answer ✔✔Entity that assumes risk of paying for medical treatments like individual,
employer, insurance, etc.
Beveridge Model - correct answer ✔✔Socialized Medicine
Government is Sole Provider AND payer, financed by income taxes, and costs are low. Everything is
regulated and under the government including employees
Ex: UK, Cuba, VA
Bismarck Model - correct answer ✔✔Social Health Insurance
Universal Coverage funded by payroll taxes, multiple providers AND payers.
Costs low cause of tight gov regulation of both provider and payers. Providers are private but regulated
(non profit also)
Germany, Japan, France, Netherlands, and Obamacare
National Health Insurance Model - correct answer ✔✔Combination: Universal coverage; multiple
providers but government is sole payer
Health insurance funded by taxes and payroll deductions, providers private but tightly regulated
low costs (government regulated), but limited service offered and long wait times
Canada, South Korea, Medicare and Medicaid follow this
Out of pocket model - correct answer ✔✔No money, no care, not universal
Rural areas of India China, South America, US (don't qualify for medicaid but don't have enough for
commercial insurance)
