Question 1

Which of the following best describes why large employers would decide to self-insure?

Accepted Answer

A)  To claim to offer more benefits to employees 
B)  To have more control over health care providers 
C)  To be more effective at keeping employees happy 
D)  To reduce administrative costs charged by insurance companies 
A)  To claim to offer more benefits to employees 
B)  To have more control over health care providers 
C)  To be more effective at keeping employees happy 
D)  To reduce administrative costs charged by insurance companies

Question 2

Why did employers decide to offer health insurance as an employee benefit?

Accepted Answer

A)  Hospitals and physicians quit offering charity care to those who could not pay. 
B)  Society was focused on not having to pay for doctor visits and other needed health benefits. 
C)  Teachers were role models for unions to demand insurance as a benefit. 
D)  To obtain and retain the limited number of persons available to work when government rules prohibited raising wages, insurance was offered. 
A)  Hospitals and physicians quit offering charity care to those who could not pay. 
B)  Society was focused on not having to pay for doctor visits and other needed health benefits. 
C)  Teachers were role models for unions to demand insurance as a benefit. 
D)  To obtain and retain the limited number of persons available to work when government rules prohibited raising wages, insurance was offered.

Question 3

Which of the following best describes why so many Americans continue to engage in unhealthy behaviors?

Accepted Answer

A)  Americans are not knowledgeable on how to change their behavior. 
B)  Americans believe that most illnesses can be cured with insurance footing the bill. 
C)  Health is not a concern to most Americans. 
D)  Most Americans do not know which behaviors are unhealthy. 
A)  Americans are not knowledgeable on how to change their behavior. 
B)  Americans believe that most illnesses can be cured with insurance footing the bill. 
C)  Health is not a concern to most Americans. 
D)  Most Americans do not know which behaviors are unhealthy.

Question 4

Which of the following was a major change after Medicare began a prescription drug benefit?

Accepted Answer

A)  Number of prescriptions ordered by physicians decreased 
B)  Medications increased without affecting patient care outcomes 
C)  U.S. expenditures on drugs approached the same level as that of other industrialized nations 
D)  Use of drugs and their cost immediately increased 
A)  Number of prescriptions ordered by physicians decreased 
B)  Medications increased without affecting patient care outcomes 
C)  U.S. expenditures on drugs approached the same level as that of other industrialized nations 
D)  Use of drugs and their cost immediately increased

Question 5

Which of the following best describes how hospitals initially coped when Medicare reimbursement became based on diagnosis-related groups (DRGs)?

Accepted Answer

A)  Charged more for patients whose care was paid by insurance 
B)  Decreased nursing staff to cut labor costs 
C)  Lobbied politicians to increase Medicare reimbursement to reflect actual costs 
D)  Refused to accept Medicare patients 
A)  Charged more for patients whose care was paid by insurance 
B)  Decreased nursing staff to cut labor costs 
C)  Lobbied politicians to increase Medicare reimbursement to reflect actual costs 
D)  Refused to accept Medicare patients

Question 6

Which of the following actions would be the least expensive approach to treating chronic diseases?

Accepted Answer

A)  Choose healthy lifestyle behaviors to retain health 
B)  Continue media campaigns encouraging early detection and treatment 
C)  Encourage patients to seek care at a local neighborhood health clinic 
D)  Suggest self-therapies that have been demonstrated to be effective 
A)  Choose healthy lifestyle behaviors to retain health 
B)  Continue media campaigns encouraging early detection and treatment 
C)  Encourage patients to seek care at a local neighborhood health clinic 
D)  Suggest self-therapies that have been demonstrated to be effective

Question 7

Which of the following best describes what physicians did to compete with new competition from health maintenance organizations (HMOs)?

Accepted Answer

A)  Accepted employment directly under the insurance company 
B)  Organized preferred provider organizations (PPOs) to negotiate with insurance companies 
C)  Created private practices with colleagues within hospital medical complexes 
D)  Decided to strike and refused to work in the new HMOs 
A)  Accepted employment directly under the insurance company 
B)  Organized preferred provider organizations (PPOs) to negotiate with insurance companies 
C)  Created private practices with colleagues within hospital medical complexes 
D)  Decided to strike and refused to work in the new HMOs

Question 8

Which of the following best describes a flaw of indemnity plans?

Accepted Answer

A)  Blue Cross and Blue Shield had a great idea, but they went bankrupt. 
B)  Cost sharing was expected of Blue Cross and Blue Shield enrollees. 
C)  Enrollees could not choose their provider or manage their own care. 
D)  Plans lacked any incentives to contain costs. 
A)  Blue Cross and Blue Shield had a great idea, but they went bankrupt. 
B)  Cost sharing was expected of Blue Cross and Blue Shield enrollees. 
C)  Enrollees could not choose their provider or manage their own care. 
D)  Plans lacked any incentives to contain costs.

Question 9

A client living in the 1920s received health care services. Which of the following would have been the most likely form of payment?

Accepted Answer

A)  Patients paid out of their pockets for whatever care the provider charged. 
B)  Public health employees gave care to those who needed it. 
C)  There was little health care to be had, regardless of a person's wealth. 
D)  Workers who belonged to a union had their bills paid by insurance. 
A)  Patients paid out of their pockets for whatever care the provider charged. 
B)  Public health employees gave care to those who needed it. 
C)  There was little health care to be had, regardless of a person's wealth. 
D)  Workers who belonged to a union had their bills paid by insurance.

Question 10

Which of the following statements best describes an unfortunate consequence of using diagnosis-related groups (DRGs) to determine reimbursement? (Select all that apply.)

Accepted Answer

A)  Insurance companies had to greatly increase their funding from employers. 
B)  The incentive was to undertreat and underuse health resources. 
C)  Health care providers had to accept losses for each patient treated. 
D)  Health care providers learned to cheat the system. 
E)  Health care providers refused to accept more patients whose reimbursement was based on DRGs.
F) High quality of care was no longer assured. 
A)  Insurance companies had to greatly increase their funding from employers. 
B)  The incentive was to undertreat and underuse health resources. 
C)  Health care providers had to accept losses for each patient treated. 
D)  Health care providers learned to cheat the system. 
E)  Health care providers refused to accept more patients whose reimbursement was based on DRGs.
F) High quality of care was no longer assured.

Question 11

Which of the following conclusions can be drawn from reviewing how health care costs are spread over a person's lifetime?

Accepted Answer

A)  Health care expenditures increase with age. 
B)  Premature newborns incur more costs than other children from birth through adulthood. 
C)  The majority of cost is incurred during middle age when chronic diseases strike. 
D)  Persons aged 85 years and above spend the most money on health care. 
A)  Health care expenditures increase with age. 
B)  Premature newborns incur more costs than other children from birth through adulthood. 
C)  The majority of cost is incurred during middle age when chronic diseases strike. 
D)  Persons aged 85 years and above spend the most money on health care.

Question 12

Which of the following actions would help decrease the total health care costs in the United States?

Accepted Answer

A)  Consolidate major health care facilities while expanding neighborhood primary care clinics 
B)  Continue the move to computer-based medical records and other efficiencies in informatics 
C)  Decrease current fraud and abuse 
D)  Streamline and make more consistent all documents needed for third-party reimbursement 
A)  Consolidate major health care facilities while expanding neighborhood primary care clinics 
B)  Continue the move to computer-based medical records and other efficiencies in informatics 
C)  Decrease current fraud and abuse 
D)  Streamline and make more consistent all documents needed for third-party reimbursement

Question 13

Which of the following best describes how having health insurance has affected lifestyle behaviors?

Accepted Answer

A)  Health promotion disease prevention programs are attended because they are reimbursable. 
B)  Health education is widespread, because insurance companies promote such education. 
C)  Medications and medical treatment are relied on for cure. 
D)  Screening is widespread because of insurance sponsorship. 
A)  Health promotion disease prevention programs are attended because they are reimbursable. 
B)  Health education is widespread, because insurance companies promote such education. 
C)  Medications and medical treatment are relied on for cure. 
D)  Screening is widespread because of insurance sponsorship.

Question 14

Which of the following best describes how eligibility for Medicaid services is determined? (Select all that apply.)

Accepted Answer

A)  Anyone over age 65 years who is eligible for Social Security benefits may apply for Medicaid. 
B)  Baseline eligibility is established by the federal government, but states may be more lenient. 
C)  Children in low-income families are eligible for free care. 
D)  Eligibility depends on family size and total family income. 
E)  Federal government establishes eligibility and gives funds to the states in reimbursement for this care.
F) State government establishes guidelines for whether to participate and who will be covered. 
A)  Anyone over age 65 years who is eligible for Social Security benefits may apply for Medicaid. 
B)  Baseline eligibility is established by the federal government, but states may be more lenient. 
C)  Children in low-income families are eligible for free care. 
D)  Eligibility depends on family size and total family income. 
E)  Federal government establishes eligibility and gives funds to the states in reimbursement for this care.
F) State government establishes guidelines for whether to participate and who will be covered.

Question 15

Which of the following is the best definition of economics?

Accepted Answer

A)  Assets that can be traded for different assets 
B)  Income and outgo of monies 
C)  Science of allocation of resources 
D)  Study of goods, services, talents, and transportation 
A)  Assets that can be traded for different assets 
B)  Income and outgo of monies 
C)  Science of allocation of resources 
D)  Study of goods, services, talents, and transportation

Exam 12: Economics of Health Care

Which of the following best describes why large employers would decide to self-insure?

Why did employers decide to offer health insurance as an employee benefit?

Which of the following best describes why so many Americans continue to engage in unhealthy behaviors?

Which of the following was a major change after Medicare began a prescription drug benefit?

Which of the following best describes how hospitals initially coped when Medicare reimbursement became based on diagnosis-related groups (DRGs)?

Which of the following actions would be the least expensive approach to treating chronic diseases?

Which of the following best describes what physicians did to compete with new competition from health maintenance organizations (HMOs)?

Which of the following best describes a flaw of indemnity plans?

A client living in the 1920s received health care services. Which of the following would have been the most likely form of payment?

Which of the following statements best describes an unfortunate consequence of using diagnosis-related groups (DRGs) to determine reimbursement? (Select all that apply.)

Which of the following conclusions can be drawn from reviewing how health care costs are spread over a person's lifetime?

Which of the following actions would help decrease the total health care costs in the United States?

Which of the following best describes how having health insurance has affected lifestyle behaviors?

Which of the following best describes how eligibility for Medicaid services is determined? (Select all that apply.)

Which of the following is the best definition of economics?

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