PRACTICE QUESTIONS AND CORRECT ANSWERS
WITH RATIONALES
SECTION 1: HEALTHCARE POLICY & LEADERSHIP (Questions 1–75)
Question 1
Which of the following best defines healthcare policy?
A) Legal regulations governing pharmaceutical patents
B) Decisions, plans, and actions undertaken to achieve specific healthcare
goals within a society
C) Clinical guidelines developed by professional organizations
D) Budget allocations for hospital administration
Correct Answer: B
Rationale: Healthcare policy encompasses broad societal decisions and
actions aimed at achieving health system goals including access, quality, and
cost. It is not limited to clinical guidelines, budgets, or patent regulations.
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Question 2
,The primary purpose of the Affordable Care Act (ACA) was to:
A) Eliminate private health insurance
B) Expand health insurance coverage and reduce the number of uninsured
C) Nationalize healthcare delivery
D) Reduce the role of Medicaid
Correct Answer: B
Rationale: The ACA focused on coverage expansion through mandates,
subsidies, and Medicaid expansion. It did not eliminate private insurance or
nationalize healthcare.
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Question 3
Which U.S. government agency is primarily responsible for implementing the
ACA's insurance market reforms?
A) FDA
B) CMS (Centers for Medicare & Medicaid Services)
C) HRSA
D) CDC
Correct Answer: B
Rationale: CMS oversees Medicare, Medicaid, and the Health Insurance
Marketplace, including ACA implementation.
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Question 4
The "Iron Triangle" of healthcare consists of:
A) Access, technology, education
B) Cost, quality, access
C) Prevention, treatment, rehabilitation
D) Patients, providers, payers
Correct Answer: B
Rationale: The Iron Triangle framework highlights the trade-offs among cost
containment, quality improvement, and access expansion. Improving one
dimension often requires sacrificing another.
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Question 5
A state decides to expand Medicaid under the ACA in 2026. Which population
becomes newly eligible?
A) All uninsured residents regardless of income
B) Adults with incomes up to 138% of the federal poverty level
C) Only pregnant women and children
D) Legal immigrants only
, Correct Answer: B
Rationale: Under the ACA, Medicaid expansion covers non-elderly adults with
incomes ≤138% of the federal poverty level.
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Question 6
Which 2022 legislation allows Medicare to negotiate drug prices for the first
time?
A) 21st Century Cures Act
B) Inflation Reduction Act
C) ACA Repeal Act
D) Healthcare Equality Act
Correct Answer: B
Rationale: The Inflation Reduction Act of 2022 granted Medicare the authority
to negotiate prescription drug prices for the first time in its history.
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Question 7
As of 2026, which of the following states still requires physician oversight for
NPs?
A) Washington