Question 1

A likely outcome of a social insurance program is that ____.&#10;A)a small proportion of the insured account for a large proportion of the expenses&#10;B)each person pays in accordance with the quality of their risk&#10;C)elimination of pre-existing conditions assures actuarial fairness&#10;D)medical underwriting reduces potential subsidization

Accepted Answer

It is common for a small proportion of the insured population to account for a large proportion of the expenses in a social insurance program, as those with high risks or pre-existing conditions may require more frequent or costly medical treatment. This is known as the 80/20 rule, where 20% of the population accounts for 80% of the costs.

Question 2

Which statement best describes the Affordable Care Act (ACA)?&#10;A)The ACA permits pricing according to age and tobacco use.&#10;B)The ACA has eliminated the use of the actuarial fairness principle.&#10;C)The ACA prohibits pricing according to age and tobacco use.&#10;D)The ACA is the first program based entirely on the solidarity principle.

Accepted Answer

The Affordable Care Act (ACA) allows for pricing variations based on age and tobacco use, although it restricts the extent to which these factors can influence premiums. This is part of its broader approach to making healthcare more accessible while still allowing some level of risk assessment by insurers.

Question 3

The efforts of Doctors Paul Farmer and Jim Kim to treat MDR-TB in poor countries demonstrated that the &#34;cost&#34; in cost-benefit and cost-effectiveness analysis is a(n)____.&#10;A)reflection of the power relationships between buyers and sellers&#10;B)objective measure&#10;C)outcome of the global patent law system&#10;D)fixed and unchangeable measure

Accepted Answer

The efforts of Doctors Paul Farmer and Jim Kim showed that the "cost" is influenced by power dynamics and can be negotiated or altered, rather than being a fixed or purely objective measure.

Question 4

The first battles over insurance companies' use of actuarial fairness to charge higher rates to certain groups concerned ____.&#10;A)race&#10;B)gender&#10;C)specific genetic diseases&#10;D)sexual orientation

Accepted Answer

The first battles over insurance companies' use of actuarial fairness were primarily concerned with race, as racial discrimination in insurance pricing was a significant issue historically.

Question 5

Commercial insurers assert that actuarial fairness requires them to ____.&#10;A)closely review individual medical records&#10;B)spread risk across groups&#10;C)insure regardless of risk&#10;D)remain blind to individual health status

Accepted Answer

Actuarial fairness in insurance involves setting premiums based on the risk each individual poses, which requires reviewing individual medical records to assess that risk accurately.

Question 6

Which statement best describes the author's view of efficiency?&#10;A)Efficiency reflects a particular point of view.&#10;B)Efficiency is an empirically measurable fact.&#10;C)Efficiency represents the highest ratio of costs to benefits.&#10;D)Efficiency is a universal good.

Accepted Answer

Throughout the text, the author presents efficiency as a concept that is subjective and dependent on individual perspectives. For example, the author notes that what may be considered efficient for a business may not necessarily be beneficial for society as a whole. This suggests that the author sees efficiency as a matter of opinion or point of view, rather than an objective fact or a universal good.

Question 7

There is a risk that efficiency calculations over-emphasize ____.&#10;A)easily measurable variables&#10;B)inputs&#10;C)outputs&#10;D)subjective variables

Accepted Answer

Efficiency calculations often rely on easily measurable variables such as production output, number of units processed, and time taken to complete a task. However, these variables may not fully capture the overall efficiency of a process or system. Other subjective variables such as quality, customer satisfaction, and environmental impact should also be taken into consideration. Therefore, over-emphasizing easily measurable variables can lead to an inaccurate assessment of efficiency.

Question 8

If doctor productivity is measured as number of patients treated per hour, the most efficient doctor is the one who ____.&#10;A)spends the least time with patients&#10;B)provides the best quality care for the time spent&#10;C)spends the most time with patients&#10;D)receives the highest ratings from patients

Accepted Answer

Efficiency, in the context of the question, is defined as the number of patients treated per hour. Therefore, the doctor who spends the least time with each patient can treat more patients within the same timeframe, making them the most efficient according to this specific measure.

Question 9

Commercial insurance is based on what concept?&#10;A)classification of risk&#10;B)assumption of risk&#10;C)principle of solidarity&#10;D)cross-subsidization

Accepted Answer

Commercial insurance is based on the concept of classification of risk, which involves grouping similar risks together and charging a premium based on the likelihood of that risk occurring. This allows insurance companies to spread the risk among many policyholders and provide coverage to those who need it most. The other options (B, C, and D) are not directly related to the concept of commercial insurance.

Question 10

In order to convince smaller drug manufacturers to develop and produce generic versions of MDR-TB drugs, Doctors Farmer and Kim first sought to increase ____ by having the drugs listed on the World Health Organization's essential drugs list.

A)demand
B)cost
C)benefits
D)supply

Accepted Answer

Increasing demand for the MDR-TB drugs would incentivize small drug manufacturers to produce generic versions as they would see a market for their product. Listing the drugs on the World Health Organization's essential drugs list would increase demand by promoting their importance and need for treatment of MDR-TB.

Question 11

The Genetic Information Nondiscrimination Act of 2008 allows insurers to ____.&#10;A)deny coverage based on the presence of a genetic disease&#10;B)increase premiums based on genetic information&#10;C)buy genetic information about individuals who want to enroll in a group plan&#10;D)request genetic information about individuals who want to enroll in a group plan

Accepted Answer

The answer of The Genetic Information Nondiscrimination Act of 2008...

Question 12

In the 1980s, health insurers' advertising campaigns emphasized ____.&#10;A)bearing your own risk&#10;B)universal coverage&#10;C)pre-existing conditions&#10;D)solidarity

Accepted Answer

The answer of In the 1980s, health insurers' advertising campaigns...

Question 13

The ideal of the solidarity principle is that we should strive to distribute medical care according to ____.&#10;A)medical need&#10;B)ability to pay&#10;C)lowest quality of risk&#10;D)highest level of consumption

Accepted Answer

The answer of The ideal of the solidarity principle is...

Question 14

The CEO of Community Hospital plans to reduce the hours worked by employees in three departments: dietary, housekeeping, and maintenance. The most likely result of this action is a(n)____.&#10;A)increase in Community Hospital's efficiency&#10;B)decrease in the community's efficiency&#10;C)decrease in Community Hospital's efficiency&#10;D)lack of any effect in the community's efficiency

Accepted Answer

The answer of The CEO of Community Hospital plans to...

Question 15

Performing all cardiac catheterizations in the region at one hospital represents an example of the ____.&#10;A)boundary problem&#10;B)adverse selection problem&#10;C)commons problem&#10;D)free rider problem

Accepted Answer

The answer of Performing all cardiac catheterizations in the region...

Deck 1: Values in Health Policy: Understanding Fairness and Efficiency