Deck 14: Finance Health Care

Question 1

The fixed amount that must be paid before insurance pays anything on the medical service is the

A) Deductible
B) Copayment
C) Coinsurance
D) Loading fee

Answer 1

A

Question 2

Assuming that the price of a medical encounter is $1,000 and the beneficiary has an unmet $500 deductible and 20% coinsurance rate, the amount the beneficiary will pay is:

A) $500
B) $800
C) $600
D) $400

Answer 2

C

Question 3

The most regressive method of financing healthcare is:

A) Income taxation
B) Premiums
C) Sales taxation
D) Payroll taxation

Answer 3

B

Question 4

To be effective a consumer-engagement strategy must help consumers to

A) Understand their risks or actual conditions so providers can manage them
B) Understand and make uninformed treatment choices
C) Advocate for private reporting by hospitals on locally recognized indicators of quality care
D) Choose providers based on information about their ability to deliver effective care
E) All of the above

Question 5

A tax that has a larger relative impact on the incomes of high-income individuals than on low-income individuals is considered to be

A) Progressive
B) Regressive
C) Neutral
D) Indeterminate

Question 6

The higher the deductible, the fewer the claims that will need to be processed.

Question 7

The focus of concern regarding rising healthcare costs should be on the absolute size of spending in the health care sector.

Question 8

A stop-loss feature sets a lower limit on the amount the consumer will have to pay during a specified period of time (e.g., annually or a lifetime).

Question 9

Under the community rating method, all enrollees in a plan are charged the same premium.

Question 10

Health insurance benefits paid by the employer are exempt from personal income taxes and social security taxes of the employee.

Question 11

If there is a vertical supply curve, then a mandated benefit will result in a full employment effect.

Question 12

The burden of a sales tax will be shared by consumer and supplier.

Question 13

What will be the effect of mandated health insurance benefits on the market for labor if the workers do not place any value on these benefits? If they fully value the benefits?

Question 14

What are bundled payment and how are they being used in health care?

Question 15

How do each of the following methods of financing the healthcare system impact on persons according to their income group?
A. Income tax
B. Sales tax
C. Payroll tax
D. Insurance premiums