Question

What is Medicare Part C?

		Provides the aged with home health care
		Provides the aged with prescription drugs
		Enables low-income aged to participate in Medicaid
		Provides a voluntary managed care option for the aged

How is Medicaid financed?

		It is financed entirely by the federal government.
		It is financed entirely by the state.
		States receive the same percentage of federal support.
		States with lower per capita incomes receive a greater percentage of federal support

If a healthcare system is "free" to everyone, and the government provides all the care demanded, then

		everyone receives the "appropriate" amount of care.
		the benefits of an additional visit are very low.
		the benefits of an additional visit are very high.
		the benefits of an additional visit in relation to the cost of production are unknown.

Economic waste occurs when

		the expected benefits of an intervention are less than the expected costs.
		the expected benefits of an intervention have very little perceived value to the health professional.
		the expected benefits of an intervention have very little perceived value to the patient.
		the expected benefits of an intervention do not meet established clinical guidelines.

Catastrophic expenses are

		incurred by a large percentage of the insured population.
		incurred by a small percentage of the insured population.
		excluded from most insurance policies.
		mainly the result of young accident victims.

Tax-exempt employer-purchased health insurance

		has no effect on federal revenues.
		is only available to employees who have worked five years for the same firm.
		is only available to highly compensated employees in large firms.
		costs the federal government lost tax revenues.

Gender rating-whereby women pay the same premium as men-

		makes the health insurance market similar to the auto insurance market.
		is fair because women incur the same medical costs as men do.
		is the consequence of a price-competitive insurance market.
		will increase premiums for men.

Tax-exempt employer-paid health insurance

		raises the price of insurance to the employee.
		primarily benefits the employer.
		lowers the price of insurance to the employee.
		has no effect on the price of insurance.

Medicare Part A (hospital services) is financed by

		a premium that is 75 percent subsidized by the government and 25 percent subsidized by the aged.
		a payroll tax on both the employee and the employer.
		a premium that is 100 percent subsidized by the government.
		both a subsidized premium and a payroll tax.

Medicare serves the following population groups:

		Those with low income up to 138 percent of the federal poverty level
		Children up to age 18 years whose parents have low income
		Those over age 65 years and all those with kidney disease
		Those over age 65 years who have low income

Medicare is considered to be unsustainable because

		the female population is living longer than the male population.
		the United States is competing within a global economy.
		the Affordable Care Act is expanding coverage to the uninsured.
		the aged are living longer and medical care costs continue to increase.

The Affordable Care Act made the following change to Medicaid:

		It shifted greater responsibility for funding to the states.
		It expanded Medicaid eligibility.
		It enabled a greater number of people on Medicare to become eligible for Medicaid.
		It permitted undocumented immigrants to pay a premium to join Medicaid.

Why do a number of state governors favor receiving federal block grants instead of the current system?

Block grants would improve equity among some states because wealthier states that can afford to spend more receive a greater amount of federal Medicaid funds.

States would have greater flexibility in designing Medicaid benefits and would be more innovative in providing care to their Medicaid population.

A block grant would not require states to increase their Medicaid population when the country goes into a recession and increased unemployment occurs.

a and b

What does the term Medicaid "crowd-out" mean?

		The Medicaid population's decreased access to physician services increases because of those on Medicaid.
		Low Medicaid physician payments caused many physicians to shift more of their time to serving privately insured patients.
		As eligibility for Medicaid increased, many newly eligible shifted away from private insurance.
		Medicaid enrollees shifted from Medicaid fee-for-service to Medicaid managed care plans.

3.00000 points   

QUESTION 15

[Ch.11] A physician shortage exists when

		all those who want to see a physician are unable to do so.
		the demand for physician services exceeds the supply of physician services at a given price.
		the demand for physician services is increasing faster than the supply of physician services.
		physicians are unable to supply more services in the face of increased demand.

3.00000 points   

QUESTION 16

[Ch.11] What is an indication that a physician shortage exists in the Medicare market?

		Waiting times to make an appointment with a physician have increased.
		Physician visits with Medicare patients are shorter.
		Physicians may prescribe more imaging tests for Medicare patients.
		All of the above

How has hospital payment changed over time?

		The private hospital sector has grown in importance, accounting for more than half of all hospital revenues.
		Medicare has become the most generous payer of hospital services, and Medicaid has been the least generous.
		Government has become the major payer, accounting for more than 55 percent of hospital revenues.
		None of the above

3.00000 points   

QUESTION 18

[Ch.16] How are hospitals reimbursed by Medicare according to diagnosis-related groups?

		Hospitals are paid their costs for treating a Medicare patient with a particular diagnosis.
		Hospitals are paid a fixed price according to the Medicare patient's diagnosis.
		Hospitals are paid a fixed price that is the same for all their publicly and privately insured patients-on the basis of their diagnoses.
		Hospitals are paid their fixed costs, which are the same for all their publicly and privately insured patients, plus their variable costs for Medicare patients-on the basis of their diagnoses.

If the relationship between price and quantity of hospital services is price elastic (more price sensitive), what would be the effect on the quantity and revenue if the hospital raised its price?

		Quantity would decrease and revenue would decrease.
		Quantity would decrease and revenue would increase.
		Quantity would increase and revenue would decrease.
		Quantity would increase and revenue would increase.

3.00000 points   

QUESTION 20

[Ch.17] What is cost shifting?

		The belief that hospitals and physicians raise their prices when their labor and supplies costs increase
		The belief that when one purchaser, such as Medicaid, does not pay hospitals its full charges, hospitals will raise their prices to those who can afford to pay
		The belief among employers that when hospital and physician prices increase, the insurer will shift these higher costs to the employer in the form of higher premiums
		The belief among employee unions that when health insurance premiums increase, the employer will decrease the employees' wages to pay for the increased premiums

3.00000 points   

QUESTION 21

[Ch.19] How did managed care come about?

		State governments provided incentives for hospitals and physicians to form managed care organizations.
		Consumer organizations developed nonprofit managed care organizations to slow the rapid rise in medical expenditures.

Entrepreneurs, who saw the potential for reducing medical system inefficiencies, started health maintenance organizations (HMOs) and marketed them to employers.
		Nonprofit hospitals, concerned about reduced hospital utilization and excess hospital capacity, saw HMOs as a way of increasing their revenue.

3.00000 points   

QUESTION 22

[Ch.19] How price sensitive are employees when choosing among competing HMOs (based on the amount of the premium they must pay)?

		Not price sensitive at all
		Very price sensitive
		Somewhat price sensitive
		Results of the research on this subject show too great a variation to be definitive.

3.00000 points   

QUESTION 23

[Ch.24] During the early 1970s, President Nixon imposed wage and price controls on the economy but then lifted those controls for the rest of the economy except for the healthcare sector. What was the effect of continuing these wage and price controls on the market for registered nurses?

		A shortage of nurses occurred.
		Nursing school enrollments declined.
		Nurses' relative wages to comparable occupations declined.
		All of the above

What might be the likely effect of the Affordable Care Act (ACA) on the registered nurse market?

		The ACA provides generous federal subsidies to increase the supply of registered nurses.
		The ACA reduces hospital Medicare payments, which will limit hospitals' ability to increase nurse wages.
		The ACA promotes accountable care organizations, which will greatly increase registered nurses' roles and responsibilities and thus their wages.
		a and c

3.00000 points   

QUESTION 25

[Ch.25] In the past five years, what has been the out-of-pocket burden for prescription drugs?

		About 20 percent
		About 35 percent
		About 50 percent
		About 70 percent

3.00000 points   

QUESTION 26

[Ch.25] What happens when a "me-too" drug enters a market?

		The me-too drug is able to achieve the same high price markup as the innovative drug already on the market.
		The me-too drug, because it is not innovative, is a waste of society's resources and has no effect on the innovative drug.
		The me-too drug becomes a good substitute for the innovative drug and lowers the drug price markup on both drugs.
		The me-too drug, because it is not innovative, is marketed in less developed countries where innovative drugs are scarce.

What has been the Food and Drug Administration (FDA)'s position on reimportation?

		The FDA is opposed to reimportation because it would lower the prices of US prescription drugs and would make drug manufacturers less likely to invest in developing new drugs.
		The FDA is opposed to reimportation because it would result in counterfeit drugs being shipped into the country.
		The FDA is opposed to reimportation because patients in other countries would not have access to US drugs if the drugs were shipped back to the United States.
		The FDA's position on reimportation changes depending on the sitting president's political party.

3.00000 points   

QUESTION 28

[Ch.27] Do patients in the United States pay higher drug prices than patients in other countries?

		Yes, studies have shown that retail prescription drug prices in the United States are higher than in other countries.
		No, comparative studies on drug prices in the United States and other countries do not include lower prices of generic drugs, which are used by many US patients.
		No, comparative studies on drug prices do not account for the large discounts received by large purchasers (such as insurers and drug plans, whose enrollees pay a small copayment) compared to the small segment of patients who buy drugs in cash at retail pharmacies.
		b and c

3.00000 points   

QUESTION 29

[Ch.29] Under the current system, do both the wealthy and the poor have equal access to a kidney transplant?

		Yes, because they both have to be placed on a wait list for a kidney to be available.
		No, because a wealthy person can travel and obtain a kidney from donors in less developed countries, such as India.

Yes, because it is illegal for a wealthy person to buy a kidney from a donor and jump the queue to have the surgeon and hospital perform the transplant.
		No, because the wealthy are always able to bribe their way to get what they want.

3.00000 points   

QUESTION 30

[Ch.29] Why has the demand for organs been increasing?

		More people have kidney disease today.
		Increased Medicare fees for organ transplantation have given surgeons and hospitals an incentive to perform more transplants.
		Improved transplant techniques and the development of better immunosuppressive drugs have greatly reduced the risk of organ rejection.
		The supply of donated organs has sufficiently increased to make it more likely for a person needing an organ transplant to receive one.

Answer 1

1)ans) a provides the aged with prescription of drugs .

2)ans) states with lower per capita incomes receive a greater percentage of Federal support.

4)ans)the expected benefits of an intervention are less than the expected cost.

5)ans), catastrophic experience: incurred by a large percentage of the insured population.

6)ans) tax-exempt-has no effect on federal revenue.

7)gender - is fair because women incur the same medical cost as men do.

8)ans)tax exempt- lower the price of insurance to the employ.

9)ans)both a subsidised premium and a payroll tax.

10)ans) the over age 65 years who have low income.

12)ans) it expanded Medicaid eligibility.