Final answer:
True statement about Blue Cross Blue Shield organizations is that they provide health insurance coverage focusing on hospital and medical services. They operate as non-profit entities and may offer HMO-like plans but are not exclusively HMOs or life insurance providers.
Step-by-step explanation:
Among the options provided regarding Blue Cross Blue Shield organizations, the true statement is that they primarily provide health insurance coverage, focusing on hospital and medical services. Blue Cross Blue Shield companies are a collection of independent, community-based organizations that commonly operate as non-profit entities rather than for-profit businesses. While some of the Blue Cross Blue Shield organizations might provide plans that function like Health Maintenance Organizations (HMOs), it is not their sole operation mode and they are not primarily life insurance providers. Focusing on the larger picture, health insurance is critical as it often presents challenges such as adverse selection and moral hazard. Adverse selection occurs when insurance buyers have more information about their health risks compared to the insurance provider, leading to a potential imbalance in the insurance market. To mitigate this, health insurance is frequently sold through employers or state government-sponsored health exchange markets under The Affordable Care Act. On the other hand, HMOs offer a pre-paid health care system where providers are compensated based on the number of enrolled patients, not by the services rendered, which is the case in fee-for-service systems. One such alternative to managing healthcare costs and mitigating moral hazard is also found in HMOs. As an HMO receives a fixed amount per person, regardless of how many services are provided, it creates an incentive for the providers to carefully manage the care given, which can both control costs and focus on promoting patient health.