MHA 707 Exam D Questions and Correct Answers
Question 1
Describe HC in America at the turn of 20th century
Correct Answer
•A cottage industry
•Engaged in by physicians and their assistants, largely students (apprentices)
•Doctors were mostly solo practitioners
•Hospitals were single, independent entities, mostly non-profit
Question 2
What is the AMA? What did it accomplish in its early years?
Correct Answer
Established standards for preliminary medical education for the degree of MD / Code of medical ethics / Recommended
use of anesthetic agents for surgery and obstetrics / Noted the dangers of secret remedies (snake oil) and patent
medicines / Recommended that state governments register births, marriages, and deaths
Page 1 of 24
,Question 3
What changes in HC during 19th century lead to Modern HC system?
Correct Answer
•Began to professionalize health care workforce working in specialized institutions to deliver health care services
•Health care research sector that advances diagnosis and treatment
•Industry that provides health care supplies and therapeutics
•Began a classification and data-collection system to evaluate health care performance
Question 4
What are Blue Cross and Blue Shield? How did they develop?
Correct Answer
Health Insurance Plans
- In 1929, Blue Cross plans were established to provide "prepaid" hospital care to workers in the Dallas public school
system
In the 1940s, Blue Cross-Blue Shield began to unify as one company
• Together they served 24 million members
• Included 81 hospital plans and 44 medical plans
Question 5
WWII influenced HC. How? What changes occurred?
Correct Answer
Page 2 of 24
, Question 6
What is Community rating in health insurance?
Correct Answer
refers to insurance pricing whereby everyone in same geographic area pays the same premium
•Regardless of their health status, age, gender, family composition, occupation, health behaviors such as smoking, or
claims history
Question 7
What is Experience rating n health insurance?
Correct Answer
tailors policies and premiums to a particular group or individual
•Premiums are based on the insured person's prior claims, health status, and risk of future claims as indicated by his or
her age, gender, health behaviors, and so forth
Question 8
What is HIPAA? How does HIPAA affect HC? Major features? Effect other industries?
Correct Answer
Health Insurance Portability and Accountability Act of 1996
•Continuity or "portability" of coverage in the private health insurance markets
•Health insurance coverage for at least a two-day hospital stay for women who give birth vaginally and four days for
cesarean deliveries (C-sections) - sponsored by Texas Senator Phil Gramm
•Mental health was given the same status as physical health by the HIPAA legislation
- Mandated privacy standards
Page 3 of 24
Question 1
Describe HC in America at the turn of 20th century
Correct Answer
•A cottage industry
•Engaged in by physicians and their assistants, largely students (apprentices)
•Doctors were mostly solo practitioners
•Hospitals were single, independent entities, mostly non-profit
Question 2
What is the AMA? What did it accomplish in its early years?
Correct Answer
Established standards for preliminary medical education for the degree of MD / Code of medical ethics / Recommended
use of anesthetic agents for surgery and obstetrics / Noted the dangers of secret remedies (snake oil) and patent
medicines / Recommended that state governments register births, marriages, and deaths
Page 1 of 24
,Question 3
What changes in HC during 19th century lead to Modern HC system?
Correct Answer
•Began to professionalize health care workforce working in specialized institutions to deliver health care services
•Health care research sector that advances diagnosis and treatment
•Industry that provides health care supplies and therapeutics
•Began a classification and data-collection system to evaluate health care performance
Question 4
What are Blue Cross and Blue Shield? How did they develop?
Correct Answer
Health Insurance Plans
- In 1929, Blue Cross plans were established to provide "prepaid" hospital care to workers in the Dallas public school
system
In the 1940s, Blue Cross-Blue Shield began to unify as one company
• Together they served 24 million members
• Included 81 hospital plans and 44 medical plans
Question 5
WWII influenced HC. How? What changes occurred?
Correct Answer
Page 2 of 24
, Question 6
What is Community rating in health insurance?
Correct Answer
refers to insurance pricing whereby everyone in same geographic area pays the same premium
•Regardless of their health status, age, gender, family composition, occupation, health behaviors such as smoking, or
claims history
Question 7
What is Experience rating n health insurance?
Correct Answer
tailors policies and premiums to a particular group or individual
•Premiums are based on the insured person's prior claims, health status, and risk of future claims as indicated by his or
her age, gender, health behaviors, and so forth
Question 8
What is HIPAA? How does HIPAA affect HC? Major features? Effect other industries?
Correct Answer
Health Insurance Portability and Accountability Act of 1996
•Continuity or "portability" of coverage in the private health insurance markets
•Health insurance coverage for at least a two-day hospital stay for women who give birth vaginally and four days for
cesarean deliveries (C-sections) - sponsored by Texas Senator Phil Gramm
•Mental health was given the same status as physical health by the HIPAA legislation
- Mandated privacy standards
Page 3 of 24
