Question 1

A primary benefit of mandated health insurance is that employees don't incur any additional cost.

Accepted Answer

Mandated health insurance requires employers to provide health insurance to their employees, but this cost is often passed on to the employees in the form of lower salaries or reduced benefits. So, employees may still incur some additional cost for their health insurance even with a mandate.

Question 2

Which of the generic health plans would best eliminate the problem of moral hazard?&#10;A) Managed competition&#10;B) National health insurance&#10;C) Medical savings accounts&#10;D) Individual mandates&#10;E) Both a and c

Accepted Answer

Medical savings accounts can reduce moral hazard by making individuals more conscious of their healthcare spending, as they use their own funds for medical expenses.

Question 3

Which of the following is a generic health plan proposed for health reform?&#10;A) Medical savings accounts&#10;B) Third-party payers&#10;C) Resource-based relative value system&#10;D) Diagnosis-related groups&#10;E) Fee-for-service

Accepted Answer

Medical savings accounts are a generic health plan proposed for health reform. This plan involves individuals setting aside money in tax-advantaged accounts to pay for medical expenses, and can incentivize cost-conscious decisions and reduce overall healthcare spending. Third-party payers, resource-based relative value system, diagnosis-related groups, and fee-for-service are all existing models or systems within the healthcare industry.

Question 4

_______ spends more per capita on medical care than all other developed countries.&#10;A) The United Kingdom&#10;B) Canada&#10;C) The United States&#10;D) Switzerland&#10;E) Germany

Accepted Answer

The United States spends more per capita on medical care than all other developed countries.

Question 5

According to Theory X, _______ and the practice of medicine is _______.&#10;A) health and disease occur randomly; an art&#10;B) health and disease occur randomly; special&#10;C) health is determined by people's lifestyle choices; an art&#10;D) health is determined by people's lifestyle choices; a science&#10;E) health and disease occur randomly; a science

Accepted Answer

Theory X suggests that health and disease occur randomly and views the practice of medicine as a science.

Question 6

A national health insurance plan would provide significant cost advantages through scale economies.

Accepted Answer

A national health insurance plan would cover a large population, which creates a larger risk pool and bargaining power to negotiate lower prices for healthcare services and drugs. This results in cost savings for both the government and individuals enrolled in the insurance plan. Scale economies also reduce administrative costs by streamlining the healthcare system and eliminating redundancies.

Question 7

Evidence suggests that medical care spending produces positive net benefits _______, but produces negligible net benefits _______.&#10;A) on average; at the margin&#10;B) at the margin; on the flat-of-the-curve&#10;C) on the flat-of-the-curve; on average&#10;D) at the margin; on average&#10;E) on the flat-of-the-curve; at the margin

Accepted Answer

Medical care spending tends to produce positive net benefits on average, meaning when considering all spending together, it generally results in overall benefits. However, at the margin, which refers to the benefit of the last unit of spending, the net benefits are often negligible, indicating that additional spending beyond a certain point does not yield significant extra benefits.

Question 8

Unlike an individual mandate system, reform focused on medical savings accounts would have minimal impact on labor markets.

Accepted Answer

Medical savings accounts can still impact labor markets by influencing employer-provided health benefits and potentially altering employment decisions based on health coverage needs.

Question 9

An individual mandate system reins in cost through highly competitive medical insurance markets.

Accepted Answer

An individual mandate system requires individuals to purchase health insurance, which can lead to a larger pool of insured individuals, creating competition among insurance providers. This competition can lead to lower costs for consumers.

Question 10

While the U.S. spends more per capita on medical care, it possesses the lowest infant mortality rate amongst developed countries.

Accepted Answer

While the U.S. does spend more per capita on medical care compared to other developed countries, it does not have the lowest infant mortality rate. In fact, it ranks towards the bottom of the list among developed countries. Other countries such as Japan, Finland, and Sweden have lower infant mortality rates.

Question 11

Which of the generic health plans would contain costs through highly competitive insurance markets?&#10;A) Managed competition&#10;B) National health insurance&#10;C) Medical savings accounts&#10;D) Individual mandates&#10;E) Both a and d

Accepted Answer

The answer of Which of the generic health plans would...

Question 12

_______ has the highest infant mortality rate amongst developed countries.&#10;A) Canada&#10;B) The United States&#10;C) France&#10;D) Germany&#10;E) Sweden

Accepted Answer

The answer of _______ has the highest infant mortality rate...

Question 13

Which of the following policy actions would be most beneficial under the assumptions of Theory Y?&#10;A) Install regulations to mitigate economic forces&#10;B) Tax the sick&#10;C) Discourage new medical technologies&#10;D) Limit financial awards, which reduce the quality of care&#10;E) equally; larger

Accepted Answer

The answer of Which of the following policy actions would...

Question 14

Which of the generic health plans would provide the greatest variety of insurance plan offerings?&#10;A) Managed competition&#10;B) National health insurance&#10;C) Medical savings accounts&#10;D) Individual mandates&#10;E) Both a and c

Accepted Answer

The answer of Which of the generic health plans would...

Question 15

Health reform based on managed competition would be financed primarily through_______.&#10;A) an income tax&#10;B) individual contributions&#10;C) employer mandates&#10;D) premium payments&#10;E) none of the above

Accepted Answer

The answer of Health reform based on managed competition would...

Deck 16: Health Insurance Reform