Final answer:
The AMA opposed health insurance due to fears of socialized medicine, concerns about quality of care, and a desire to maintain competition and professional autonomy, not due to a lack of government regulation.
Step-by-step explanation:
The American Medical Association (AMA) strongly opposed the concept of health insurance when it was initially introduced for several reasons. However, the option "Lack of government regulation" was not among these reasons. Instead, the AMA feared increased government control, which they believed could lead to "socialized medicine" and threaten the quality of care, ultimately reducing the incentive for medical innovation and causing a decline in the standard of healthcare services. They also wanted to maintain the status quo where physicians and hospitals competed without fixed reimbursement rates, as they worried that regulation of prices could hinder competition and innovation, echoing the situation in Soviet Russia where government control led to deficiencies in quality and care. Additionally, they had concerns about the government essentially dictating medical practices and costs, as it threatened their professional autonomy and could potentially lower their income through such regulations.