Deck 25: Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

Question 1

In 2013, the average child who was eligible for Medicaid cost the government

A)$938.
B)$2,807.
C)$4,211.
D)more than the average cost of all Medicaid recipients.

Answer 1

B

Question 2

To be eligible for Medicaid, children under nineteen must live in a household with family income under

A)$10,000.
B)133% of the poverty line for their family size.
C)185% of the poverty line for their family size.
D)$35,000.

Answer 2

B

Question 3

Medicaid patients are disproportionately

A)children.
B)wealthy.
C)female.
D)female children.

Answer 3

D

Question 4

When setting reimbursement rates, states must

A)follow a uniform national standard.
B)pay what private insurance companies pay in the state.
C)pay enough so that adequate services are available.
D)pay the median rate charged by physicians in the state for each procedure.

Question 5

The rate at which the federal government matches state Medicaid expenditures is

A)50% for richer states ranging to 70% for poorer states.
B)0% for richer states ranging to 100% for poorer states.
C)70% for richer states ranging to 50% for poorer states.
D)50% for all states.

Question 6

Of all Medicaid spending, ____ goes for the health needs of the elderly.

A)65%
B)50%
C)20%
D)13%

Question 7

In 2013, the average person over age 65 covered by Medicaid cost the government

A)$938.
B)$2,650.
C)$15,483.
D)less than the average cost of all Medicaid recipients.

Question 8

Of all Medicaid spending, ____ goes for the health needs of children.

A)50%
B)35%
C)20%
D)13%

Question 9

In 2013, Medicaid spending (net of CHIPs)per patient was on average

A)$938.
B)$1,652.
C)$4,211.
D)around $7,000.

Question 10

Medicaid is

A)a private health insurance program for government employees.
B)a private health insurance program for the poor.
C)a public health insurance program for the poor.
D)a public health insurance program for the elderly.

Question 11

To be eligible for Medicaid, pregnant woman and children under one year of age must live in a household with family income under

A)$10,000.
B)133% of the poverty line for their family size.
C)185% of the poverty line for their family size.
D)$35,000.

Question 12

When creating market demand curves for privately produced and privately consumed goods, we must

A)add the quantity demanded at each price.
B)add the price paid at each quantity.
C)take an average of the quantity demanded at each price.
D)take an average of the price paid at each quantity.

Question 13

Medicaid patients are disproportionately

A)white.
B)male.
C)female.
D)white males.

Question 14

The rate at which the federal government matches state Medicaid expenditures is

A)uniform across the U.S.
B)dependent on the state's income.
C)dependent on the state's patient load.
D)dependent on the state's income and patient load.

Question 15

Combined in 2014, the federal and state spending on Medicaid amounted to

A)$2.7 million.
B)$197 million.
C)$400 billion.
D)$496 billion.

Question 16

Medicaid covers

A)all procedures performed by doctors.
B)only procedures performed in hospitals.
C)only procedures performed in doctors' offices.
D)nearly all procedures except abortions, cosmetic surgeries, and weight-loss and hair growth drugs.

Question 17

Medicaid began in the

A)1930s.
B)1960s.
C)1980s.
D)1990s

Question 18

Reimbursement rates for Medicaid are

A)uniform across the United States.
B)generous relative to what private insurance pays.
C)vastly different across the states.
D)uniform across the United States, but vastly different across the states.

Question 19

Families are automatically eligible for Medicaid if they are on

A)TANF.
B)SSI.
C)Social Security.
D)TANF and SSI.

Question 20

The recipients of Medicaid

A)are all children.
B)are all adults.
C)are both children and adults in roughly equal numbers.
D)are both children and adults but children vastly outnumber the adults.

Question 21

A reason that Medicaid spending is greater for the elderly than children is that

A)children generally come from wealthier households.
B)the low-income elderly use Medicaid to pay for nursing home care.
C)the program only serves the elderly.
D)children generally come from wealthier households and the low-income elderly use Medicaid to pay for nursing home care.

Question 22

Publicly provided health insurance for the poor will

A)raise the price of health care to the nonpoor.
B)raise the level of health care consumed by the nonpoor.
C)decrease the total amount of health care consumed.
D)raise the price of health care to the nonpoor and decrease the total amount of health care consumed.

Question 23

Medicare, Part B covers

A)hospitalization.
B)drugs administered in hospitals.
C)doctors' visits.
D)hospitalization and drugs administered in hospitals.

Question 24

When someone is both poor and old they are on

A)Medicare only.
B)Medicaid only.
C)both Medicare and Medicaid.
D)a separate program called "Eldercaid".

Question 25

Nursing home care is covered by

A)Medicare, Part A.
B)Medicare, Part B.
C)Medicaid, regardless of income or wealth.
D)Medicaid, but only for the poor.

Question 26

In order to save money, Medicaid has

A)begun to utilize fee-for-service plans.
B)begun to utilize HMOs.
C)denied use of emergency room services for non-emergency care.
D)begun to utilize HMOs and denied use of emergency room services for non-emergency care.

Question 27

Medicare began in

A)the 1920's.
B)the 1930's.
C)the 1950's.
D)the 1960's.

Question 28

In 2015 Medicare cost taxpayers

A)$2 million.
B)$2 billion.
C)$630 billion.
D)$2 trillion.

Question 29

Publicly provided health insurance for the poor will

A)lower the price of health care to the nonpoor.
B)raise the level of health care consumed by the nonpoor.
C)increase the total amount of health care consumed.
D)lower the price of health care to the nonpoor and increase the total amount of health care consumed.

Question 30

In order to save money, Medicaid has

A)begun to utilize fee-for-service plans.
B)begun to utilize HMOs.
C)refused to cover those eligible for TANF.
D)begun to utilize HMOs and refused to cover those eligible for TANF.

Question 31

Medicare covers all those

A)over 65.
B)eligible for Social Security benefits.
C)unable to pay its premiums.
D)who are both young and poor.

Question 32

Neither part of Medicare covers

A)long term stays in retirement homes.
B)prescription drugs.
C)doctors' visits.
D)long term stays in retirement homes and prescription drugs.

Question 33

A key reason that Medicaid spending is greater for the elderly than children is that

A)children generally come from wealthier households.
B)the elderly are more likely to suffer from costlier diseases.
C)the elderly are more likely to require nursing home care.
D)the elderly are more likely to suffer from costlier diseases and require nursing home care.

Question 34

Publicly provided health insurance for the poor will

A)lower the price of health care to the nonpoor.
B)raise the level of health care consumed by the poor.
C)decrease the total amount of health care consumed.
D)lower the price of health care to the nonpoor and decrease the total amount of health care consumed.

Question 35

Neither part of Medicare covers

A)doctors' visits.
B)prescription drugs.
C)hospice care.
D)prescription drugs and hospice care.

Question 36

For a married couple, if one partner must enter a nursing home

A)the assets of both partners must be completely depleted before Medicaid will pay.
B)Medicaid will pay but will seize all of the assets when the other partner dies.
C)the assets of the household are split and Medicaid will pay once the ill partner's assets are gone.
D)Medicaid will pay no questions asked.

Question 37

Medicare, Part A covers

A)hospitalization.
B)drugs administered in hospitals.
C)doctors' visits.
D)hospitalization and drugs administered in hospitals.

Question 38

Publicly provided health insurance for the poor will

A)lower the price of health care to the nonpoor.
B)lower the level of health care consumed by the nonpoor.
C)decrease the total amount of health care consumed.
D)lower the price of health care to the nonpoor and decrease the total amount of health care consumed.

Question 39

Publicly provided health insurance for the poor will

A)raise the price of health care to the nonpoor.
B)raise the level of health care consumed by the nonpoor.
C)increase the total amount of health care consumed.
D)raise the price of health care to the nonpoor and increase the total amount of health care consumed.

Question 40

When creating demand curves for a good where one group gets the good for free and another group must pay the market price, we must

A)add the quantity demanded for each group at each price.
B)add the price paid at each quantity.
C)take an average of the quantity demanded at each price.
D)add the amount that the first group wants when its free to them to the quantity demanded for the second at each price.

Question 41

The Children's Health Insurance Program is designed to

A)replace Medicaid for children.
B)replace Medicaid for families with children.
C)augment Medicaid by insuring the children of working (but low income)families who have no insurance.
D)insure all children regardless of circumstance.

Question 42

Medicare, Part B is

A)voluntary at a low premium.
B)compulsory at a low premium.
C)compulsory at a high premium.
D)voluntary at a high premium.

Question 43

Medicare's costs have

A)risen, but only with inflation.
B)risen, but at a rate less than inflation.
C)actually fallen on a per capita basis.
D)risen on a per capita basis even accounting for inflation.

Question 44

Prospective payments for Medicare

A)motivate patients to keep costs down.
B)motivate hospitals to keep costs down.
C)are illegal in the US.
D)motivate patients and hospitals to keep costs down.

Question 45

Under the intermediate set of assumptions of the Medicare Trustees Report, payroll taxes ______ cover the likely increase in Medicare expenses.

A)would have to grow substantially to
B)would have to remain constant to
C)could be cut and still
D)and sales tax would have to remain constant to

Question 46

The Medicare Trustees created a report with predictions about the future based on

A)only optimistic assumptions.
B)only pessimistic assumptions.
C)only realistic assumptions.
D)varied assumptions from optimistic to pessimistic.

Question 47

Prescription drugs are covered by

A)Medicare, Part A.
B)Medicare, Part B.
C)the two parts split the cost.
D)Medicare, Part D.

Question 48

Medicare, Part B premiums are

A)quite high relative to private insurance would charge.
B)just above what private insurance would charge.
C)in line with what private insurance would charge.
D)quite low relative to private insurance would charge.

Question 49

In order to control costs, Medicare has begun to

A)let people choose HMOs.
B)use prospective payments based on Diagnosis Related Groups.
C)only care for those who cannot afford care themselves.
D)let people choose HMOs and use prospective payments based on Diagnosis Related Groups.

Question 50

Many economists see that Medicare is necessary because

A)of the problem of adverse selection.
B)most health insurance comes from employer groups and the elderly are not working.
C)private health insurance never works.
D)of the problem of adverse selection and most health insurance comes from employer groups and the elderly are not working.

Question 51

The Medicare Trust Fund is

A)invested in gold.
B)loaned to the US Treasury and therefore held in bonds.
C)held in the stock market.
D)held in the corporate bond market.

Question 52

Under Medicare, Part A hospitals are paid

A)a fixed amount per patient they see in a year.
B)based on the Diagnosis Related Group each patient falls into when they arrive.
C)their costs.
D)their costs plus 5% profit.

Question 53

Chronic nursing home care is covered by

A)Medicare, Part A.
B)Medicare, Part B.
C)the two parts split the cost.
D)no form of Medicare.

Question 54

Under the intermediate projections produced in the Year 2014, Medicare will go bankrupt

A)before 2005.
B)between 2009 and 2012.
C)around 2035.
D)never.

Question 55

Medicare costs are high and rising at rapid rates because

A)elderly pay only a quarter of the true costs and are therefore less cost conscious.
B)there are more and more elderly.
C)The number of elderly people continues to increase and they pay only a quarter of the true costs and are therefore less cost conscious.
D)the elderly have been shown to enjoy hospitals.

Question 56

Medicare, Part A is

A)voluntary at a low premium.
B)compulsory at a low premium.
C)compulsory at a high premium.
D)voluntary at a high premium.

Question 57

Hospice care is covered by

A)Medicare, Part A.
B)Medicare, Part B.
C)the two parts split the cost.
D)no form of Medicare.

Question 58

For every dollar in costs to Medicare Part B ____ cents is paid by recipients and ____ cents by the taxpayer.

A)25; 75
B)50; 50
C)67; 33
D)75; 25

Question 59

Medicare costs are high and rising at rapid rates because

A)elderly pay only a quarter of the true costs and are therefore less cost conscious.
B)medical technology is advancing and raising costs.
C)medical technology is advancing and raising costs while the elderly pay only a quarter of the true costs and are therefore less cost conscious.
D)the elderly have been shown to enjoy hospital food.

Question 60

Medicare costs are high and rising at rapid rates because

A)there are more and more elderly.
B)medical technology is advancing and raising costs.
C)medical technology is advancing and raising costs and at the same time there are more and more elderly.
D)the elderly have been shown to enjoy hospitals.

Question 61

When health care is made available to the poor without cost, the market demand for health care services represents, for every different possible price, the quantity of services demanded

A)only by the nonpoor at that price.
B)by both the nonpoor at that price and by the poor at that price.
C)by the nonpoor at that price and by the poor at a price of zero.
D)only by the government at that price.

Question 62

Under the most likely future scenario, the Medicare payroll tax would have to rise to

A)3)30% imposed upon employers.
B)3)30% imposed upon employers and 3.30% imposed upon employees.
C)6)60% imposed upon employees.
D)6)60% imposed upon employers.

Question 63

The Annual Reports of the Trustees of the Medicare Trust Fund are based upon projections of

A)wages and interest rates.
B)fertility rates and life expectancies.
C)federal budget deficits and trade deficits.
D)wages and interest rates along with fertility rates and life expectancies.

Question 64

The Children's Health Insurance Program was created in the

A)1940s.
B)1960s.
C)1980s.
D)1990s.

Question 65

States often will use Medicaid funds to pay Medicare premiums for their poor elderly.

Question 66

In 2016, Medicare Part B premiums for single persons with incomes under $85,000 were

A)$121.80, with a deductible of $166.
B)$199.50, with a deductible of $350.
C)$248.00, with a deductible of $350.
D)$372.50, with a deductible of $500.

Question 67

The Children's Health Insurance Program (CHIP)

A)provides matching rates that are higher on average than regular Medicaid matching rates.
B)requires no premium to be paid by insured families for coverage of their children.
C)requires that covered families pay the full cost of well-baby care and immunizations.
D)all of the options are correct.

Question 68

When health care is made available to the poor without cost, the poor consume

A)fewer health care services than they otherwise would.
B)the same health care services that they otherwise would.
C)only the health care services essential for their survival.
D)more health care services than they otherwise would.

Question 69

Hospitals can refuse to treat non-emergency cases for Medicaid recipients.

Question 70

The Patient Protection and Affordable Care Act

A)increases the size of the Medicare Part D (prescription drug)"donut hole".
B)reduces the size of the Medicare Part D (prescription drug)"donut hole".
C)has no impact on Medicare.
D)has no impact on Medicaid.

Question 71

If a person makes just a little more than that which would make them eligible for Medicaid and they do not have a job that provides health insurance their children are likely to be eligible for

A)the Children's Income Fund.
B)the Children's Health Insurance Program.
C)the Working Poor Health Insurance Cooperative.
D)Medicare.

Question 72

Today, Medicare costs are shared between government and the insured

A)equally, on a 50-50 basis.
B)with government paying 25 % of the cost.
C)with government paying 75% of the cost.
D)with government paying 100% of the cost.

Question 73

The Patient Protection and Affordable Care Act

A)assumes that significant reductions in physician and hospital reimbursements will take place because Congress has allowed many similar reimbursement cuts in the past.
B)assumes that significant reductions in physician and hospital reimbursements will take place despite the fact that Congress has rarely allowed many such reimbursement cuts in the past.
C)has no impact on Medicare
D)has no impact on Medicaid.

Question 74

The "donut hole" in Medicare Part D coverage refers to the fact that

A)coverage begins only after individuals pay a significant portion of their prescription drug costs.
B)coverage begins with the first dollar of prescription drug spending, then drops to zero. after a particular level of spending, and then increases again.
C)police are covered more generously than firefighters.
D)coverage ends for those who spend a great deal on prescription drugs.

Question 75

The presence of insurance, by partially insulating both consumers and providers from bearing the full cost of the health care services provided, can create what economists have identified as

A)adverse selection problems.
B)moral hazard problems.
C)third-party payer problems.
D)all of the options are correct.

Question 76

Under current law, Part A of Medicare is financed by a payroll tax of

A)2)90 % imposed upon employers.
B)1)45% imposed upon employers and 1.45% imposed upon employees.
C)2)90% imposed upon employees.
D)6)60% imposed upon employers.

Question 77

Everyone under the poverty line qualifies for Medicaid.

Question 78

When Medicare was created, costs were to be shared between government and the insured

A)equally, on a 50-50 basis
B)with government paying 25 % of the cost
C)with government paying 75% of the cost
D)with government paying 100% of the cost

Question 79

In 2014, Medicaid and the Children's Health Insurance Program combined covered

A)only children and no adults.
B)44 million children and 27 million adults.
C)relatively wealthy families.
D)only families able to pay the high fees.