Healthcare Finance MHA 706 Q & As
(Verified Answers) 2026
Individuals at greater risk of needing health care are more
likely to purchase insurance - Correct Answers ✅Adverse
selection
Healthcare Finance - Correct Answers ✅the practice of
finance, including both accounting AND financial
management
Accounting - Correct Answers ✅the measurement, in
financial (dollar) terms of events that reflect the resources,
operations, and financing of an organization
Financial Management - Correct Answers ✅provides the
theory, concepts, an tools necessary to help managers make
better financial decisions
Characteristics of a business - Correct Answers ✅-obtains
financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
role of finance - Correct Answers ✅to plan for, acquire, and
use resources to maximize the efficiency of the enterprise
,Healthcare Finance MHA 706 Q & As
(Verified Answers) 2026
Financing activities can be summarized by the FOUR C's
which are: - Correct Answers ✅-Cost minimization
-cash sufficiency
-capital access
-control of financial resources
deductibles - Correct Answers ✅The amount that must be
paid out of pocket by the policyholder before an insurance
provider will pay any expenses
Coinsurance - Correct Answers ✅requires an individual to
pay for a certain percentage of the eligible medical expenses
Moral Hazard - Correct Answers ✅the risk of overuse of
health services because the insured does not bear the full
cost of the consequences
copayments - Correct Answers ✅the fixed amount for a
covered service that the insurer mandates that the patient
pay to the provider before the patient receives services from
the provider
Medicare Part A - Correct Answers ✅covers hospital and
some skilled nursing home coverage
, Healthcare Finance MHA 706 Q & As
(Verified Answers) 2026
Medicare Part B - Correct Answers ✅Covers physician
services, outpatient care and other miscellaneous services.
Medicare Part C - Correct Answers ✅Often called Medicare
Advantage, managed care benefits of A &B
Medicare Part D - Correct Answers ✅Covers prescription
drugs
Medigap - Correct Answers ✅health insurance plans that
help pay expenses not covered by Medicare
Underwriting provisions - Correct Answers ✅Community
rating and Experience rating
Private 3rd party - Correct Answers ✅BCBS "The Blues"
Commercial insurers
self-insurers
Medicaid - Correct Answers ✅-low-income mothers and
children
elderly, blind and disabled who receive supplemental income
-takes up a very large portion of a state's budget
(Verified Answers) 2026
Individuals at greater risk of needing health care are more
likely to purchase insurance - Correct Answers ✅Adverse
selection
Healthcare Finance - Correct Answers ✅the practice of
finance, including both accounting AND financial
management
Accounting - Correct Answers ✅the measurement, in
financial (dollar) terms of events that reflect the resources,
operations, and financing of an organization
Financial Management - Correct Answers ✅provides the
theory, concepts, an tools necessary to help managers make
better financial decisions
Characteristics of a business - Correct Answers ✅-obtains
financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
role of finance - Correct Answers ✅to plan for, acquire, and
use resources to maximize the efficiency of the enterprise
,Healthcare Finance MHA 706 Q & As
(Verified Answers) 2026
Financing activities can be summarized by the FOUR C's
which are: - Correct Answers ✅-Cost minimization
-cash sufficiency
-capital access
-control of financial resources
deductibles - Correct Answers ✅The amount that must be
paid out of pocket by the policyholder before an insurance
provider will pay any expenses
Coinsurance - Correct Answers ✅requires an individual to
pay for a certain percentage of the eligible medical expenses
Moral Hazard - Correct Answers ✅the risk of overuse of
health services because the insured does not bear the full
cost of the consequences
copayments - Correct Answers ✅the fixed amount for a
covered service that the insurer mandates that the patient
pay to the provider before the patient receives services from
the provider
Medicare Part A - Correct Answers ✅covers hospital and
some skilled nursing home coverage
, Healthcare Finance MHA 706 Q & As
(Verified Answers) 2026
Medicare Part B - Correct Answers ✅Covers physician
services, outpatient care and other miscellaneous services.
Medicare Part C - Correct Answers ✅Often called Medicare
Advantage, managed care benefits of A &B
Medicare Part D - Correct Answers ✅Covers prescription
drugs
Medigap - Correct Answers ✅health insurance plans that
help pay expenses not covered by Medicare
Underwriting provisions - Correct Answers ✅Community
rating and Experience rating
Private 3rd party - Correct Answers ✅BCBS "The Blues"
Commercial insurers
self-insurers
Medicaid - Correct Answers ✅-low-income mothers and
children
elderly, blind and disabled who receive supplemental income
-takes up a very large portion of a state's budget
