32 CHAPTER 6 / Health Care Delivery Systems
Concepts for Lecture
1. Medicare is a national and state health insurance program for adults
over 65 years of age. The Medicare plan is divided into two parts.
Part A provides insurance toward hospitalization, home care, and
2. Medicaid is a federal public assistance program paid out of general
3. Supplemental Security Income benefits are available for individuals
with disabilities, those who are blind, and also individuals not eligi-
4. The State Children’s Health Insurance Program (SCHIP) was estab-
lished by the U.S. government to provide insurance coverage for
5. Congress established the prospective payment system to curtail
6. There are two types of private insurance plans: not-for-profit and
for-profit. Private health insurance pays either the entire bill or, more
7.
Health care group plans provide blanket medical service in exchange for
a predetermined monthly payment. These plans include health mainte-
nance organizations, preferred provider organizations, preferred provider
arrangements, independent practice associations, and physician/hospital
organizations.
A preferred provider organization (PPO) consists of a group of
providers and perhaps a health care agency that provides an insur-