Deck 8: Costs

Question 1

Health care expenditures began their dramatic increase after

A) the passage of Medicare and Medicaid.
B) the passage of the Medicare Modernization Act.
C) the rollback of managed care plans in the early 2000s.
D) the passage of the Affordable Care Act.

Answer 1

A

Question 2

Which type of insurance has the highest provider reimbursement?

A) Medicaid
B) Medicare
C) private insurance
D) they are all about the same.

Answer 2

C

Question 3

About what percentage of healthcare expenditures are accounted for public sector programs.

A) 30%
B) 35%
C) 40%
D) 45%

Answer 3

B

Question 4

About what percentage of gross domestic product (GDP) was accounted for by healthcare expenditures in 2018?

A) 14%
B) 16%
C) 18%
D) 20%

Question 5

Which type of service constitutes the largest percentage of healthcare expenditures?

A) physician services
B) nursing homes
C) prescription drugs
D) hospital services.

Question 6

Over the years, out-of-pocket expenditures as a percentage of total healthcare expenditures have:

A) decreased.
B) increased.
C) stayed about the same.
D) both decreased and increased.

Question 7

Since 2001, the growth of healthcare expenditures in the United States has

A) decreased.
B) increased.
C) stayed about the same.
D) both decreased and increased.

Question 8

The concentration of healthcare expenditures refers to

A) Medicare spending the majority of healthcare expenditures.
B) managed care organizations spending the majority of healthcare expenditures.
C) a small portion of the population accounting for a much portion of healthcare expenditures.
D) none of the above.

Question 9

Two of the most important chronic conditions are

A) cancer and heart attack.
B) the opioid epidemic and obesity.
C) COPD and acid reflux.
D) none of the above.

Question 10

The U.S. spends _____ on health care than other westernized, industrial countries.

A) about the same
B) less
C) more
D) somewhere in the middle

Question 11

Over the last decade or so, employers have

A) passed on more costs to employees.
B) lessened the cost to employees.
C) been more willing to cover part-time employees.
D) gotten covered more employees.

Question 12

Which of the following is a form of cost-sharing?

A) deductibles
B) co-payments
C) co-insurance
D) all of the above

Question 13

What is medical tourism?

A) Touring other countries to see what their healthcare systems are like.
B) Getting a procedure done in another country because of the cost.
C) Visiting hospitals in the area to see which ones have the best prices.
D) None of the above.

Question 14

According to one estimate,Medicare, Medicaid and Social Security take up what portion of the federal budget?

A) 40%
B) 50%
C) 60%
D) 70%

Question 15

Which of the following are healthcare cost drivers?

A) Medical technology
B) Medical errors and waste
C) High prices
D) all of the above

Question 16

To what extent does the practice of defensive medicine increase the cost of health care in the United States?

A) A great deal.
B) A little.
C) Defensive medicine has no impact on healthcare costs.
D) There is not enough evidence to judge one way or the other.

Question 17

The authors estimate that waste, fraud, and abuse account for about what percent of total healthcare expenditures?

A) 15%
B) 30%
C) 45%
D) 60%

Question 18

Which of the following lifestyle factors can lead to preventable illnesses?

A) smoking
B) drinking
C) physical inactivity
D) all of the above

Question 19

Healthcare administrative costs are _____ in the United States than in other westernized, industrial countries.

A) about the same
B) less than
C) more than
D) somewhere in the middle

Question 20

Which of the following is more responsible for high healthcare spending in the United States?

A) prices
B) increase in the number of services
C) the role of government
D) they are equally responsible

Question 21

Consumers are especially concerned about

A) the high cost of health care
B) cost-sharing
C) surprise medical bills
D) b & c

Question 22

Rent seeking is when

A) people look for the cheapest housing.
B) companies extract excess profits from their products.
C) doctors making use of hospital facilities.
D) none of the above.

Question 23

A major reason why healthcare costs and expenditures are lower in other westernized, industrial countries than in the United States, is that these countries

A) own their own hospitals and doctors and other providers work for the government.
B) pharmaceutical companies charge less for their products in these countries because they make so much from the U.S. market.
C) these other countries regulate prices.
D) all of the above.

Question 24

Bending the cost curve refers to

A) requiring pharmaceutical companies to reduce the price of their products.
B) slowing the yearly growth in healthcare expenditures.
C) reducing the yearly growth in healthcare expenditures.
D) none of the above.

Question 25

The market strategy for controlling healthcare costs is based on which concepts?

A) Competition will reduce costs.
B) Incentives for patients and providers need to be changed.
C) Transparency of prices for services will lead to better shopping for services.
D) All of the above.

Question 26

Which state is has done the best in controlling healthcare costs?

A) Maryland
B) Florida
C) New York
D) California

Question 27

According to the Medicare Modernization Act of 2003, the federal government is

A) allowed to negotiate drug prices.
B) not allowed to negotiate drug prices.
C) leaving it up to the states to negotiate drug prices for Medicare.
D) using managed competition to control drug prices.

Question 28

In the late 1990s and early 2000s, how successful was managed care organizations in controlling healthcare expenditures.

A) managed care organizations made no effort to control spending.
B) managed care organizations had little effect on healthcare spending.
C) managed care organizations were reasonably successful in controlling healthcare spending.
D) managed care did not come into exist until the passage of the Affordable Care Act.

Question 29

How successful have wellness programs been in reducing spending on healthcare.

A) Very successful.
B) Had very little impact.
C) Were never tried.
D) Only worked for Medicare recipients.

Question 30

The Affordable Care Act reformed payment systems (especially related to Medicare). Which of the following were such reforms?

A) Health care exchanges.
B) Accountable care organizations.
C) Bundled payments.
D) b & c