Certified Revenue Cycle Representative (CRCR) Practice Exam

What organization originated the concept of insuring prepaid health care services?

1. Medicare and Medicaid Services

2. Blue Cross and Blue Shield

3. American Medical Association

4. Health Maintenance Organization

The correct answer is: Blue Cross and Blue Shield

The concept of insuring prepaid health care services was originated by Blue Cross and Blue Shield. This organization was established in the early 20th century, with Blue Cross initially starting as a way to offer hospital care through a prepayment plan, allowing individuals to pay a fixed amount in advance for hospital services. Subsequently, Blue Shield was created to cover physicians' services. Blue Cross and Blue Shield's model paved the way for what we now recognize as health insurance by providing a structured way for individuals to access medical care without the burden of high up-front costs at the time of service. This innovative approach effectively shifted the cost risk away from patients, promoting the practice of prepaying for health services in return for guaranteed access to care. Their influence shaped the development of subsequent health plans, leading to the diverse landscape of health insurance options available today.