Deck 10: Cost of Health Care Services

Question 1

Where do most people acquire private health insurance?

A) Employers
B) Medicare
C) Government
D) Independent insurance agents

Answer 1

Employers

Question 2

What group is the biggest force behind health care cost reform?

A) State government
B) Federal government
C) Industry
D) Health care providers

Answer 2

Industry

Question 3

Medical care expenditures have increased at a greater rate than any other commodity.

Answer 3

True

Question 4

What tool do experts use to measure inflation?

A) Gross National Product (GNP)
B) Consumer Price Index (CPI)
C) Critical Provider Index (CPI)
D) Cost-of-living

Question 5

For every 50 people, what percent of all expenditures, on average, can be attributed to just one person who is critically ill?

A) 33
B) 25
C) 50
D) 66

Question 6

Higher deficits may lead to higher taxes as more of the federal or state budgets are allocated to paying off government debt.

Question 7

Which of the following is an example of an indirect cost of illness?

A) Cost of a physician visit
B) Cost of a prescription
C) Loss of income
D) Cost of hospital stay

Question 8

Which of the following factors explains the disparity in growth of health care spending between the United States and the rest of the OECD countries?

A) The United States has an aging population.
B) The United States has experienced exploding growth in the use of technology in the provision of health care.
C) The United States has significant economic expansion.
D) All of the above

Question 9

The United States depends on the private insurance market to finance what percentage of health care?

A) 26%
B) 41%
C) 58%
D) 73%

Question 10

Who has led efforts to control health care costs?

A) Third-part payers
B) Government
C) Employers
D) Individual consumers

Question 11

People from other developed countries rarely travel to the United States to access care because it is as readily available in their countries.

Question 12

Rising health care costs directly affect the ability of American business to compete internationally.

Question 13

According to recent studies, during which stage of life does the most health care spending occur?

A) During the first two years
B) During adolescence
C) During midlife
D) During the last few months

Question 14

Which of the following is an example of a nonlabor input?

A) Administrator filing paperwork
B) Construction of new hospital facilities
C) Physician evaluating a patient
D) Nurse filling out a medical chart

Question 15

The price of health care does not affect people's ability to afford health insurance.

Question 16

Compared to other developed nations, health care spending per capita in the United States can best be described as which of the following?

A) More than doubled
B) More than tripled
C) Less than half
D) Less than one-third

Question 17

Approximately what percent of our medical care is financed through federal and state governments?

A) 20
B) 47
C) 78
D) 33

Question 18

How is the cost of employer-sponsored health insurance for employees and retirees passed on to consumers?

A) As a payroll tax
B) As a cost of production
C) As sales tax
D) None of the above

Question 19

What is the goal of the National Business Coalition on Health?

A) To provide employees with tools and incentives to purchase high-quality health care as well as improve the quality of care delivered by providers
B) To reduce the cost of care delivered by health care providers to the uninsured
C) To provide employers with tools and incentives to purchase high-quality health care as well as reduce the cost of care delivered by providers
D) To decrease the number of uninsured nationwide and to offer low-cost group insurance

Question 20

Health care spending has been steadily increasing for decades.

Question 21

__medicine entails the ordering of more tests, procedures, and consultations than are medically necessary, with the hope of decreasing the likelihood of a lawsuit.

Question 22

Delivering health care goods and services requires several inputs, in economic terms. These inputs can be classified as either or __or nonlabor.

Question 23

Which of the following specialty is NOT among the most vulnerable to medical malpractice suits?

A) OB-GYNs
B) Orthopedics
C) Pediatrics
D) Neurosurgery

Question 24

To protect their assets from litigation, clinicians obtain __insurance.

Question 25

Match the term with the appropriate definition or description:
In 1932, expressed the same cost-access-quality concerns as we are addressing today

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 26

Which of the following is NOT a strategy used by employers to decrease their share of the health care cost burden?

A) Increase the number of health insurance companies with whom they do business
B) Transfer an increasing share of health care costs to employees
C) Make employees pay an increasing portion of the cost for dependent care
D) Shift employees into managed care plans

Question 27

Consistent __to a health care provider, like the necessities of food and shelter, directly affects the health of its purchasers.

Question 28

Match the term with the appropriate definition or description:
Type of award given in malpractice lawsuits

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 29

As health care spending consumes an increasing percentage of our federal budgets, it adds disproportionately to the growth of the deficit and ____.

Question 30

The health care system in the United States is ______, with a mix of employer-financed health care with private and government-financed medical care.

Question 31

What are the two major types of medical price inflation?

A) demand-pull and supply-push
B) demand-push and supply-pull
C) demand-push and cost-pull
D) demand-pull and cost-push

Question 32

The bulk of direct health care spending is consumed by __services.

Question 33

Match the term with the appropriate definition or description:
Results in higher production costs for the provider of services; may stem from new technology, increased wages of health care personnel, duplication of medical services, unionization or threat of unionization, and inappropriate use of medical care such as defensive medicine and inexperienced providers using services inefficiently

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 34

Other than for _______, the United States government does not control what is charged or spent on health care services.

Question 35

The __is a monthly measure of average changes in price paid by urban consumers for a fixed market basket of a sample of approximately 400 goods and services that are representative of what urban consumers purchase.

Question 36

Which of the following is NOT an indicator used by the medical care component of CPI to measure trends in medical care prices?

A) Hospital costs
B) Insurance cost
C) Dental price
D) Drug prices
Completion
Complete each statement.

Question 37

Strategies to reduce costs and expenditures, such as the rationing of care, very likely will have an adverse effect on ______.

Question 38

Higher deficits may lead to higher __as more of the federal or state budgets are allocated to paying off government debt.

Question 39

___expenditures have increased at a greater rate than any other commodity.

Question 40

Match the term with the appropriate definition or description:
The gap between government revenues and government expenditures in a fiscal year

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 41

Match the term with the appropriate definition or description:
Services patients receive and the costs of those services are more a function of the region of the country in which they live than the services they actually need

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 42

Match the term with the appropriate definition or description:
The improper treatment of patients by physicians and other providers

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 43

Match the term with the appropriate definition or description:
When there are more hospital beds, there are more patients to fill those beds and therefore reimbursement for providers

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 44

Match the term with the appropriate definition or description:
The value of all of the goods and services produced in the United States

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 45

Match the term with the appropriate definition or description:
Organization of 30 countries who believe strongly in a free market system

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 46

Match the term with the appropriate definition or description:
Managed care plan of insurance in which range of coverage is based on a group, not individuals

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 47

Match the term with the appropriate definition or description:
Occurs when consumer's willingness to purchase services is greater than the supply offered

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 48

Match the term with the appropriate definition or description:
Used by prospective payment system method of payment to reimburse hospitals based on the primary diagnosis of the patients

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 49

Match the term with the appropriate definition or description:
Emphasize patient-centered care and clinical outcomes to help rein in costs

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit

Question 50

Match the term with the appropriate definition or description:
The accumulation of yearly U.S. deficits

A)cost-push inflation
B)demand-pull inflation
C)diagnosis related groups (DRGs)
D)Final Report of the Committee on the Costs of Medical Care
E)gross domestic product (GDP)
F)health maintenance organization (HMO)
G)medical malpractice
H)national debt
I)Organization for Economic Cooperation and Development (OECD)
J)"pain and suffering"
K)quality improvement (QI) initiatives
L)regional variation in health care costs
M)Roemer's law
N)yearly deficit