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Exam Elaboration | Health Care
17 The Bismarck Model: Social Health Insurance
SKU: ECON345 | Pages: 1 | Year: 2026
Document Brief Description
Sickness funds in Bismarck health care systems are publicly administered
and financed.
FALSE. Sickness funds in a Bismarck model are private, non-pr...
Sickness funds in Bismarck health care systems are publicly administered
and financed.
FALSE. Sickness funds in a Bismarck model are private, non-profit entities.
2. Bismarck nations tend to have higher national health care expenditures than
Beveridge countries.
TRUE. Bismarck countries have around a 11% average health expenditure
as a percentage of GDP, while Beveridge countries are around 9.5%.
3. Universal health care in Bismarck countries emphasizes equity of care for all
individuals, regardless of social and economic circumstances. The sale of pri
vate supplemental insurance is prohibited.
FALSE. Supplemental insurance and private insurance is offered to individ
uals who are willing to pay for it.
4. There is an emphasis on managed competition in the Bismarck model.
1
2 | Health Economics Answer Key
TRUE. Managed competition is one of the defining aspects of the Bismarck
model.
5. Even though it is illegal for sickness funds to deny coverage to individuals,
insurers still often engage in risk selection.
TRUE. Bismarck countries are continually making policies to combat risk
selection.
6. Physicians have no say in what prices to charge their patients.
FALSE. Even though many countries have government controlled prices,
physicians can still lobby and negotiate with public entities each year to de
termine medical prices for each year.
7. Patients in France typically pay all their health fees directly to the doctor and
are later reimbursed by their insurance fund.
TRUE. One distinction between France and other Bismarck countries is that
patients pay all costs upfront and then are reimbursed by their insurance
fund. This helps ensure patient choice and physician autonomy.
- 1-pages detailed model answer (PDF + online view)
- Clinical reasoning & medication selection justified
- NP-level explanation with key teaching points
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Keywords
17 The Bismarck Model: Social Health Insurance, Sickness funds in Bismarck health care systems are publicly administered and financed. FALSE. Sickness funds in a Bismarck model are private, non-profit entities. 2. Bismarck nations tend to have higher national health care expenditures than Beveridge countries. TRUE. Bismarck countries have around a 11% average health expenditure as a percentage of GDP, while Beveridge countries are around 9.5%. 3. Universal health care in Bismarck countries emphasizes equity of care for all individuals, regardless of social and economic circumstances. The sale of pri vate supplemental insurance is prohibited.
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