HCMG 2020 Midterm Exam 100%
Correct!
What is health - ANSWERSCombination of endowment (nature/nurture), behaviors, and
environment
Iron triangle - ANSWERSAccess -- quality -- cost (containment)
How do you measure health - ANSWERS- Self reports
- Morality and life expectancy
- Vital signs
- Height/weight/BMI
- Genes and other biomarkers
Incentives vs constraints - ANSWERSEverything is distorted because the insurance will
cover it
Insurance design (premiums, deductibles)
Equity vs efficiency - ANSWERSGovt goal to take care of vulnerable populations
The insurance company's goal is to maximize profits
Major scientific breakthroughs in the 19th century that paved the way for modern
medicine - ANSWERSHand washing
Germ theory of disease
Surgical advancements
Pasteurization
Infrastructure for sanitization
Breakthroughs in the 20th century that brought the medicalization of health -
ANSWERSPenicillin
Agricultural advancements and the western diet
Exercise as a leisure activity
Work and sedentary lifestyles
Framingham heart study
Pharmaceutical advancements
Johnson's Social Security Act amendment - ANSWERSLaunched Medicare and
Medicaid in 1965
Causes of the opioid epidemic - ANSWERSChronic pain marketed as a fifth vital sign
Marketing campaigns in the 90s
FDA labels minimized risks
Overprescribing
,Fentanyl is cheap and accessible
Deaths of despair - ANSWERSInclude drug and alcohol related deaths and suicide
T/F: Alcohol deaths have doubled since 1999 - ANSWERSTrue
Fundamental problem of economics is - ANSWERSHow to allocate resources to satisfy
human wants -- acknowledging that resources are scarce, resources have alternative
uses, the relative importance of resources varies by person
Production function (how health and health care interact) - ANSWERShealth =
H(endowment, behaviors, environment, health care)
Diminishing marginal returns - ANSWERSDecreasing satisfaction or usefulness as
additional units of a product are acquired
Ex: when you exercise you see benefits but if you exercise too much diminishing
marginal returns kick in and negatively impact your health
Relationship between health care and health - ANSWERSPositive relationship --> as
you increase investment in health care your health increases --> subject to diminishing
marginal returns
Why do so many Americans have ESHI? - ANSWERS1.
2.
3.
4.
Ways that the US tops on consumption - ANSWERS1. High admin costs
2. High salaries
3. Pharma and medical devices
4. Over-utilization of defensive imaging
5. Fee for service
Production function pivots - ANSWERSIncreases in the quantity of an input results in a
movement up or down the curve -- ORIGIN STAYS THE SAME SO ITS A PIVOT
Ex: if you take energy supplements your health will increase
Why is it hard to study health data - ANSWERS1. Linking health care to health
outcomes is hard
2. Self selection is rampant (healthy people do healthy things --> healthy people interact
more with primary care so hard to say that primary care has health benefits)
3. Descriptive studies w/o randomization
Market - ANSWERSWhere buyers and sellers of a given product, service, or information
interact and exchange
, In a market what determines what - ANSWERSQuantity determines price
Law of supply - ANSWERSWhen the price of a good rises, its quantity supplied rises -->
movement along the curve
Law of demand - ANSWERSWhen the price of a good rises, its quantity demanded falls
--> movement along the curve
Market equilibrium - ANSWERSWhen quantity supplied = quantity demanded --> this
price clears the market
Economic efficiency - ANSWERSResources used optimally and waste is minimized -->
allocation is Pareto optimal
Deductible - ANSWERSAmount you must pay before you begin receiving any benefits
from your insurance company
Copay - ANSWERSan out-of-pocket fee paid by a person with health insurance at the
time a covered service, such as an office visit or a prescription, is received
Coinsurance - ANSWERSThe share of claim paid by insured
The group number on the insurance card is used to identify:
a. The insured
b. The covered employer group
c. The insurance company
d. The policy number - ANSWERSThe covered employer group
Types of provider payments - ANSWERS1. Fee for service
2. Pay for performance
3. Bundled payments
4. Capitation
Fee for service - ANSWERSa system under which doctors and hospitals receive a
payment for each service they provide --> each visit/treatment/test is paid for separately
--> incentives more utilization
Pay for performance - ANSWERSProviders are rewarded or penalized based on
whether they meet pre-determined benchmarks -->ex: if there are high readmissions the
hospital pays a penalty
Bundled payments - ANSWERSa model of reimbursement in which single payments are
made to multiple providers involved in an episode of care, creating a sense of shared
accountability among providers --> incentivizes less utilization
Correct!
What is health - ANSWERSCombination of endowment (nature/nurture), behaviors, and
environment
Iron triangle - ANSWERSAccess -- quality -- cost (containment)
How do you measure health - ANSWERS- Self reports
- Morality and life expectancy
- Vital signs
- Height/weight/BMI
- Genes and other biomarkers
Incentives vs constraints - ANSWERSEverything is distorted because the insurance will
cover it
Insurance design (premiums, deductibles)
Equity vs efficiency - ANSWERSGovt goal to take care of vulnerable populations
The insurance company's goal is to maximize profits
Major scientific breakthroughs in the 19th century that paved the way for modern
medicine - ANSWERSHand washing
Germ theory of disease
Surgical advancements
Pasteurization
Infrastructure for sanitization
Breakthroughs in the 20th century that brought the medicalization of health -
ANSWERSPenicillin
Agricultural advancements and the western diet
Exercise as a leisure activity
Work and sedentary lifestyles
Framingham heart study
Pharmaceutical advancements
Johnson's Social Security Act amendment - ANSWERSLaunched Medicare and
Medicaid in 1965
Causes of the opioid epidemic - ANSWERSChronic pain marketed as a fifth vital sign
Marketing campaigns in the 90s
FDA labels minimized risks
Overprescribing
,Fentanyl is cheap and accessible
Deaths of despair - ANSWERSInclude drug and alcohol related deaths and suicide
T/F: Alcohol deaths have doubled since 1999 - ANSWERSTrue
Fundamental problem of economics is - ANSWERSHow to allocate resources to satisfy
human wants -- acknowledging that resources are scarce, resources have alternative
uses, the relative importance of resources varies by person
Production function (how health and health care interact) - ANSWERShealth =
H(endowment, behaviors, environment, health care)
Diminishing marginal returns - ANSWERSDecreasing satisfaction or usefulness as
additional units of a product are acquired
Ex: when you exercise you see benefits but if you exercise too much diminishing
marginal returns kick in and negatively impact your health
Relationship between health care and health - ANSWERSPositive relationship --> as
you increase investment in health care your health increases --> subject to diminishing
marginal returns
Why do so many Americans have ESHI? - ANSWERS1.
2.
3.
4.
Ways that the US tops on consumption - ANSWERS1. High admin costs
2. High salaries
3. Pharma and medical devices
4. Over-utilization of defensive imaging
5. Fee for service
Production function pivots - ANSWERSIncreases in the quantity of an input results in a
movement up or down the curve -- ORIGIN STAYS THE SAME SO ITS A PIVOT
Ex: if you take energy supplements your health will increase
Why is it hard to study health data - ANSWERS1. Linking health care to health
outcomes is hard
2. Self selection is rampant (healthy people do healthy things --> healthy people interact
more with primary care so hard to say that primary care has health benefits)
3. Descriptive studies w/o randomization
Market - ANSWERSWhere buyers and sellers of a given product, service, or information
interact and exchange
, In a market what determines what - ANSWERSQuantity determines price
Law of supply - ANSWERSWhen the price of a good rises, its quantity supplied rises -->
movement along the curve
Law of demand - ANSWERSWhen the price of a good rises, its quantity demanded falls
--> movement along the curve
Market equilibrium - ANSWERSWhen quantity supplied = quantity demanded --> this
price clears the market
Economic efficiency - ANSWERSResources used optimally and waste is minimized -->
allocation is Pareto optimal
Deductible - ANSWERSAmount you must pay before you begin receiving any benefits
from your insurance company
Copay - ANSWERSan out-of-pocket fee paid by a person with health insurance at the
time a covered service, such as an office visit or a prescription, is received
Coinsurance - ANSWERSThe share of claim paid by insured
The group number on the insurance card is used to identify:
a. The insured
b. The covered employer group
c. The insurance company
d. The policy number - ANSWERSThe covered employer group
Types of provider payments - ANSWERS1. Fee for service
2. Pay for performance
3. Bundled payments
4. Capitation
Fee for service - ANSWERSa system under which doctors and hospitals receive a
payment for each service they provide --> each visit/treatment/test is paid for separately
--> incentives more utilization
Pay for performance - ANSWERSProviders are rewarded or penalized based on
whether they meet pre-determined benchmarks -->ex: if there are high readmissions the
hospital pays a penalty
Bundled payments - ANSWERSa model of reimbursement in which single payments are
made to multiple providers involved in an episode of care, creating a sense of shared
accountability among providers --> incentivizes less utilization
