Question 1

Which of the following was a major change after Medicare began a prescription drug benefit?

Accepted Answer

As with other health care services,once a funding source has been established,usage and costs increase.Thus,the number of prescriptions ordered increased.For 2006,the United States expenditure for pharmaceuticals was 1.5 times that of other industrialized countries,and these expenditures continue to rise.

Question 2

Which of the following conclusions can be drawn from reviewing how health care costs are spread over a person's lifetime?

Accepted Answer

Expenditures increase with age.About one third of costs are incurred during middle age; half during the senior years; and,for those older than 85 years,one third of their lifetime costs occurs during their last year of life.

Question 3

Which of the following actions would help decrease the total health care costs in the United States?

Accepted Answer

The billions of dollars spent on health care and struggles for control between providers,consumers,and health care organizations have increased the risk of fraud and abuse.The Federal Bureau of Investigation (FBI)estimates that health care fraud costs the U.S.$80 billion annually (FBI,2012).Thus,decreasing the fraud and abuse in the system would have the largest impact over any of the other proposed actions.

Question 4

Which of the following best describes how the federal government determines which projects are awarded special funding for health care?

Accepted Answer

Allocation of federal resources is based on societal priorities,such as the 2020 Health

Question 5

A client living in the 1920s received health care services.Which of the following would have been the most likely form of payment?

Accepted Answer

Until the 1930s,the predominant method of health care financing was self-payment.Health care providers charged a fee for the services they rendered,and the patient paid the out-of-pocket expense.The assumption was that those who could pay would pay and those who could not pay should receive care and pay what they could.Insurance companies did not exist in the 1920s.

Question 6

Why did employers decide to offer health insurance as an employee benefit?

Accepted Answer

The idea of paying a small fee for guaranteed health care to have sickness cured was very popular.Health care providers liked knowing they would receive payment for their services.During World War II,faced with a limited workforce and governmental restrictions on wages,employers began to see health insurance as a means of supplying workers' benefits without granting a wage increase.Teachers were not demanding insurance as a benefit.Hospitals and physicians continued to provide charity care as they were able.Society understood that they needed to pay for health services; however,businesses realized that providing insurance was a way to keep their needed workforce.

Question 7

Which of the following best describes how having health insurance has affected lifestyle behaviors?

Accepted Answer

Funding for behavioral changes is limited,inadequate,or unavailable.Weight loss programs or smoking cessation programs are not reimbursable treatment regimens,although more expensive pharmaceutical interventions are reimbursable.Therefore,it is financially wise not to worry until illness strikes because illness care is reimbursable,whereas preventive health care is not.

Question 8

Which of the following best describes what happens when a health care organization receives federal funding for a special health care need?

Accepted Answer

When the funding is no longer provided,the programs cease,which results in lack of continuity of care.Research may be done related to the program,other programs may be developed because of the current program that is being implemented,and participants may encourage local funding to continue.However,the most likely outcome is that the program will end when the funding ends,so there is no continuity in the services that are provided.

Question 9

Which of the following statements best describes what happened to health care providers during the Great Depression?

Accepted Answer

With 25% of the population out of work,the number of patients capable of paying their medical bills was reduced.Because public financing was limited,hospitals,physicians,and other providers went bankrupt.Because hospitals and physicians were going bankrupt,there was no way to increase charity care or services for those in need.

Question 10

Which of the following is the best definition of economics?

Accepted Answer

Economics represents the science of allocation of resources.Resources are goods or services.The other definitions do not fully describe economics.

Question 11

Which of the following best describes the first government step in trying to stop constantly rising costs?

Accepted Answer

The first efforts to control costs were made by the federal government when Medicare hospital reimbursement was based on a prospective payment system.Payment would be based on a classification system that identified costs according to diagnosis and client characteristics.Restricting insurance companies to add new members to their plan was not part of the first steps to try to stop constantly rising costs.

Question 12

Which of the following best describes why so many Americans continue to engage in unhealthy behaviors?

Accepted Answer

Society sees insurance as an economic shield protecting against all disease and illness.The belief in cure rather than prevention,combined with this financial safety net,encourages society to become a passive participant in health care.The pervasive societal thought is "I don't have to worry; I have insurance." Americans are aware of which behaviors are unhealthy,have knowledge on how to change their behavior,and are concerned about health,but insurance has allowed them to take a passive approach to health.

Question 13

Which of the following best describes what was done by large industrial giants to stop the constant increase in their costs for health insurance for their employees?

Accepted Answer

Large industrial giants,such as Kaiser Permanente,decided to assemble their own health care programs.They built hospitals,hired physicians,and provided health care services to their employees.In an effort to market this concept,the phrase health maintenance organization was created.These organizations were designed to provide comprehensive care to employees.As these large health care programs were established,enrollees had limited freedom of choice.Preventive care was covered and encouraged,but care was somewhat restricted,and care providers were encouraged to reduce costs by providing only the most necessary services.

Question 14

Which of the following best describes a current trend related to health care services?

Accepted Answer

There is a national shift from nonprofit health care to for-profit health care as large for-profit organizations take over smaller community organizations.Because emphasis is on profit,mechanisms of achieving higher reimbursement have been developed.Coding of the patient's illness from the CPT codes results in an increase in reimbursement.Use of computerized medical record programs almost ensures that service can be reimbursed at the highest rate possible.This has changed health care practices to the use of services that are low in cost and higher in reimbursement.High-cost services are limited or not offered.

Question 15

Which of the following best describes a flaw of indemnity plans?

Accepted Answer

Indemnity plans paid all the costs of covered services provided to the enrollee.The enrollee enjoyed free choice of provider and services.They preserve the enrollee's right of choice and allow the person to manage his or her own health care.These plans lack incentives for cost containment.Today,cost-sharing efforts (e.g.,copayments,deductibles)help contain costs.Blue Cross and Blue Shield continue to be a provider of health insurance.

Question 16

Which of the following best describes what physicians did to compete with new competition from health maintenance organizations (HMOs)?

Accepted Answer

In an effort to compete with HMOs,physicians and hospitals organized the independent practice model,which provided services to enrollees of one insurance company.This model evolved into the PPO,which offered services at a reduced rate in exchange for a guaranteed increase in consumers.Physicians did not become directly employed by insurance companies,set up private practices with colleagues,or decide to strike in order to compete with the HMOs.

Question 17

Which of the following actions would be the least expensive approach to treating chronic diseases?

Accepted Answer

The five leading causes of death and illness can be positively affected by changes in lifestyle.Healthy lifestyles can modify or even prevent most chronic illnesses.Seeking care at a neighborhood health clinic,producing media campaigns,and engaging in self-therapies are all more expensive approaches to treating chronic diseases than choosing healthy lifestyle behaviors.

Question 18

Which of the following best describes the health care services that are provided by philanthropic groups?

Accepted Answer

Philanthropic funding,whose services are typically research or disease oriented,pays a limited amount of health care.Services are limited to the specific disease or population of interest.Informational and research activities constitute the majority of services provided,although some give direct care or meet ancillary needs such as housing,transportation,or wigs.Legislative lobbying and special services are not the primary health care services provided by philanthropic groups.

Question 19

Which of the following statements best describes a major event that occurred in the 1960s that affected health care?

Accepted Answer

The popularity and benefits of employer-provided insurance plans were recognized,as was the reality that some segments of society were being neglected.The 1960s,with a pervasive thrust for social justice,presented the opportunity to move toward universal health care coverage.Titles XVIII and XIX of the Social Security Act created Medicare and Medicaid,respectively.There was no increase in funding for training of health care providers,voluntary payment of taxes by hospitals,and an increase in the amount of charity care provided in the 1960s.

Question 20

Which of the following statements best describes the message that public health leaders are trying to emphasize to the public?

Accepted Answer

Although there are many public health messages in the media,from quitting smoking to getting a checkup,the primary message currently being emphasized by public health,as well as all the media coverage of the constantly increasing cost for health care,is for each person to take responsibility for his or her own health through choosing healthy lifestyle behaviors.Supporting legislative efforts is not as important as the need for individuals to take responsiblity for their own health.

Quiz 12: Economics of Health Care