Deck 10: Healthcare Payment, Cost Drivers Behavioral Economics

Question 1

Which of the following factors have contributed to the devolution of a near perfect healthcare market to an imperfect market?

A) Knowledge asymmetry
B) Scientific advancements
C) Blurring of cost transparency
D) A and C
E) A,B and C

Answer 1

E

Question 2

Which of the following is the most accurate historical progression of payment for health services since the Industrial Revolution?

A) Prepaid plans - Blue Shield - Sickness Funds - Employer Tax Deduction - Medicare & Medicaid
B) Prepaid plans - Blue Cross - Sickness Funds - Employer Tax Deduction - Medicare & Medicaid
C) Prepaid Plans - Sickness Funds - Blue Shield - Employer Tax Deduction - Medicare & Medicaid
D) Sickness Funds - Prepaid Plans - Blue Cross - Medicare & Medicaid - Employer Tax Deduction
E) Sickness Funds - Prepaid Plans - Blue Shield - Medicare & Medicaid - Employer Tax Deduction

Answer 2

C

Question 3

Which of the following set of actions contributed to the establishment of a tax deduction for employer sponsored health insurance?

A) War Labor Board wage and price freeze allowance of non-cash wages (benefits - health insurance)
B) Supreme Court Ruling that benefits could be included in labor negotiations
C) Hospital Survey and Construction Act linking hospital construction incentives to provision of charity care.
D) A and B
E) A and C

Answer 3

D

Question 4

Complete the sentence with the most appropriate words or phrases. Since the mid 1960s, healthcare legislation has sought to increase __________, decrease __________, and increase __________.

A) cost - access - quality
B) access - cost - quality
C) quality - access - cost
D) accountability - access - cost
E) cost - accountability - access

Question 5

Which of the following are elements of modern health insurance plans?

A) Prepaid plans (preventive care)
B) Indemnification (hospital and rehabilitation care)
C) Reinsurance (loss prevention)
D) A and B
E) A,B and C

Question 6

Complete the sentences with the most appropriate words or phrases.
Physicians function as __________ for patients. While physicians claim __________ agency, research documents they function as __________. Physician pay is __________ and __________ to OECD peers.

A) agents - moral - agents of economic self-interest - high - comparable
B) agents - moral - agents of economic self-interest - high - not comparable
C) agents - moral - agents of economic self-interest - moderate - not comparable
D) agents - economic - moral - high - not comparable
E) principles - economic - moral - moderate - comparable

Question 7

Which of the following statements regarding aging and healthcare costs is NOT true?

A) From 60 years of age to 90 years of age, the cost of healthcare services for men and women escalates at the same rate.
B) At age 90 years, the cost of healthcare services for women plateaus while the cost for men continues to escalate.
C) The Medicare costs for a 95-year old retiree is 3 times higher for an individual who retired at 55 years of age than one who retired at 70 years of age.
D) Scholars have documented that 25% to 30% of lifetime medical expenditures occur in the last year of life with 80% of those costs occurring in the last 60 days of life.
E) Hospice admission lengths of stay have doubled from 48 days in 1998 to 73 days in 2009.

Question 8

Which neoclassical / behavioral economic dyad is NOT correct?

A) Rational / Not Rational
B) Preferences / Experience
C) Full Information / Incomplete Information
D) Path Independent / Path Dependent
E) Mistakes Systematic / Mistakes Random

Question 9

Which of the following concepts ARE associated with hedonic and decision efficiency?
A) 1. & 2.

A) Decision efficiency occurs when payment is coupled with purchase.
B) Decision efficiency occurs when system 2 thinking over powers system 1 thinking.
C) Hedonic efficiency occurs when payment is decoupled from purchase.
E) A and C

Question 10

Which of the following is NOT associated with getting to zero?

A) Moral hazard
B) Perceived value gain
C) 1974 Rand Insurance experiment
D) Increased price salience to avoid moral hazard
E) Increased price vividness through minimal payment coupling

Question 11

Which of the following is NOT true about USA Healthcare payment?

A) It is incented to increase volume
B) It is incented to reward hard work
C) It is incented to only provide necessary care
D) It is incented to encourage prevention over treatment
E) It is incented to toward fraud

Question 12

Which of the following is TRUE about USA Healthcare payment?

A) The Hill-Burton Act of 1946 encouraged the construction of long-term care facilities
B) Medicare payment schema evolved from the Hill-Burton Act
C) Medicare was modeled after 1960 BC/BS plans
D) Medicare cost increases have been in line with CPI inflation
E) Medicare's enactment of the Prospective Payment System had no effect on how hospitals delivered care

Question 13

Which of the following statements is NOT true about physician payment?

A) Physician practice has not been incented by the fee-for-service payment model
B) Physicians have been incented to become specialists in part as a result of the payment system
C) The payment model has caused medical specialists to move from cognitive care to procedural care
D) The high cost of medical care incents physicians to pursue specialty practice
E) The payment model for physicians is going to have to change if we are going to bring costs under control

Question 14

Which of the following statements is NOT true about the economics of health care?

A) The first substantial attempt to control Health Service Organization costs was the Prospective Payment system
B) Payment models have incented the evolution of how Health Service Organizations deliver healthcare
C) Basic scientific research grants are provided by the CDC
D) Our aging population is driving up the cost of healthcare
E) Excessive end of life care is an avoidable healthcare cost

Question 15

How are OECD countries relevant to the development of health policy?

Question 16

How are payment models relevant to the development of health policy?

Question 17

How does payment drive delivery models?

Question 18

Provide an example of how the healthcare executive should engage the development of payment models. Discuss.

Question 19

Discuss the complexity of controlling healthcare costs?

Question 20

Discuss how policy can be used to control healthcare costs.

Question 21

Discuss how healthcare executives can be involved in developing policies and practices to control healthcare costs.