MHA 710 TEST 2 (CH 5-8) EXAM | QUESTIONS & 100% CORRECT ANSWERS (VERIFIED) | LATEST UPDATE | GRADEA+

MHA 710 TEST 2 (CH 5-8) EXAM | QUESTIONS & 100% CORRECT ANSWERS (VERIFIED) | LATEST UPDATE | GRADEA+ A ______ percentage of the French population is obese; they consume _______ fat than Americans do. a. large; more b. small; more c. large; less d. small; less - RIGHT ANSWER -small; less A person with AIDS has a guaranteed right to apply for health insurance and receive coverage at the same rate as a healthy person. What is the likely result for the insurance company? a. Externalities b. The principle-agent problem c. Rational ignorance d. Adverse selection e. The substitution effect - RIGHT ANSWER -Adverse selection A physician's ability to induce demand is greatly enhanced when: a. patients request follow-up visits. b. patients pay their own medical bills. c. patients have difficulty gathering and processing information. d. treatment options are limited. e. the physician follows strict treatment guidelines. - RIGHT ANSWER -patients have difficulty gathering and processing information. A prepaid hospital plan created by Baylor Hospital for a group of Dallas public school teachers in 1929 is considered by many to be the forerunner of: a. major medical insurance. b. the health maintenance organization. c. Blue Shield. d. Blue Cross. e. managed care. - RIGHT ANSWER -Blue Cross. According to Grossman (1972), how is the demand for medical care determined? a. It is derived from the demand for health. b. It is determined primarily by the age of the individual. c. Genetic factors are all that matter. d. Insurance coverage is the most important factor. - RIGHT ANSWER -It is derived from the demand for health. Administrative services only (ASO) - RIGHT ANSWER -An arrangement between a self-insured employer sponsored health plan and an outside vendor, a third-party administrator, who manages all health insurance claims. All of the following are the results of moral hazard, except: a. Increased likelihood of visiting a physician b. Rational ignorance c. Deductibles and coinsurance d. Increased medical care spending e. Higher health insurance premiums - RIGHT ANSWER -Rational ignorance All of the following are true for indemnity insurance except that: a. it is often experience-rated, with premiums based on expected losses. b. premiums are based on separate risk pools often organized by employers. c. it frequently includes coverage for losses due to casualty and theft d. it serves as the basis for all health insurance coverage in most developed countries, including the United States. e. it provides reimbursement for financial losses, including fire and life. - RIGHT ANSWER -it serves as the basis for all health insurance coverage in most developed countries, including the United States. All of the following statements are true regarding infant mortality in the United States, EXCEPT? a. Reducing the rate of still births b. Prenatal care programs in low-income neighborhoods c. Emphasis on improving infant health during the post-neonatal period d. Delaying childbearing beyond the teen years e. Reduced drug use among expectant mothers - RIGHT ANSWER -Reducing the rate of still births All of the statements below are true according to the Organization for Economic Cooperation and Development, EXCEPT? a. The average smoker in the United States has a life expectancy that is almost 10 years shorter than the average non-smoker's. b. Smoking prevalence among 18- to 24-year-olds is rising. c. Almost 15 percent of all Medicaid spending is attributable to tobacco use of one kind or another. d. There is very little difference in the prevalence of smoking between males and females worldwide. e. Alcohol- and smoking-related illnesses are associated with over 500,000 deaths annually. - RIGHT ANSWER -There is very little difference in the prevalence of smoking between males and females worldwide. Amenable mortality - RIGHT ANSWER -Premature death that could have been avoided with timely access to high-quality health care. An increase in the excise tax on alcohol of $1 per liter: a. will generate minimal tax revenues for the federal government. b. will save lives when coupled with a uniform drinking age. c. will raise the price of alcohol by exactly $1 per liter. d. will have no effect on alcohol consumption. e. will generate substantial revenues if demand is elastic. - RIGHT ANSWER -will save lives when coupled with a uniform drinking age. Basic research - RIGHT ANSWER -Research whose purpose is to advance fundamental knowledge. Clinical endpoint - RIGHT ANSWER -Usually represents a clinical outcome, such as survival, disease mitigation, or avoidance of a clinical event (such as heart attack or stroke). Often, more subjective measures, such as symptom scores or quality of life measures, are used Clinical pathway - RIGHT ANSWER -: Guide to evidence-based medical practice used to direct clinicians to follow recommended clinical procedures when treating patients with certain conditions Coinsurance - RIGHT ANSWER -: A standard feature of health insurance policies that requires the insured person to pay a certain percentage of a medical bill, usually 10 to 30 percent, per physician visit or hospital stay. Community rated - RIGHT ANSWER -Basing health insurance premiums on the health care utilization experience of the entire population of a specific geographic area. Premiums are the same for all individuals regardless of age, gender, risk, or prior use of health care services. Complete life - RIGHT ANSWER -: A utilitarian construct promoted by certain bioethicists that places a chronological age limit on the life worth living. After we reach a certain age (some say 75 years), our physical and mental capacity diminishes and we should not waste scarce medical resources to prolong life. Copayment - RIGHT ANSWER -A standard feature of many managed care plans that require the insured person to pay a fixed sum for each office visit, hospital stay, or prescription drug. Cost benefit - RIGHT ANSWER -A procedure that compares the cost of undertaking a course of action and the resulting benefits expected to flow from that action Cost-effectiveness analysis (CEA) - RIGHT ANSWER -Measuring the change in the cost of undertaking a specific course of action (compared to the next best alternative action) relative to the change in the health outcome of that action (compared to that same alternative). Cost-of-illness studies - RIGHT ANSWER -Value of the resources spent on a particular disease category; often called the burden of disease. Cream skimming - RIGHT ANSWER -A practice of designing insurance policies so that healthy (low-risk) individuals will purchase coverage and those with a history of costly medical problems (high-risk) will not. Cross-price elasticity - RIGHT ANSWER -The sensitivity of consumer demand for good A as the price of good B changes. Decision tree - RIGHT ANSWER -A tool that depicts a model of decisions and their consequences visually depicted by a treelike diagram that traces cause and effect. Deductible - RIGHT ANSWER -The amount of money that an insured person must pay before a health plan begins paying for all or part of the covered expenses Disability-adjusted life expectancy (DALE) - RIGHT ANSWER -The valuation of life expectancy weighted in terms of the lost value of the years marked by disability Disease prevalence - RIGHT ANSWER -The percentage of a population that has a specific disease at a point in time. Disproportionate share - RIGHT ANSWER -A payment adjustment under Medicare and Medicaid that pays hospitals that serve a large number of indigent patients. Economic opportunism - RIGHT ANSWER -When parties to a transaction practice some form of deliberate deceit to take selfish advantage to promote personal gain Effectiveness - RIGHT ANSWER -The ability to achieve the desired result under real-world conditions. Efficacy - RIGHT ANSWER -The ability to achieve the desired result in an ideal setting under controlled conditions. Eliminating health disparities across various population groups requires that we: a. focus solely on improving the health of our most vulnerable population groups. b. initiate health system reform to bring about universal insurance coverage. c. expand in-patient hospital access for inner-city residents. d. provide better health and nutritional education. e. address the source of disparities in behavioral, socioeconomic, and environmental factors. - RIGHT ANSWER -address the source of disparities in behavioral, socioeconomic, and environmental factors. Employer mandate - RIGHT ANSWER -A requirement that employers must offer a qualified health plan to every employee or pay a penalty (usually in the form of a payroll tax). Expected value of an outcome - RIGHT ANSWER -The weighted average of all possible outcomes, with the probabilities of those outcomes used as weights Experience rated - RIGHT ANSWER -Basing health insurance premiums on the utilization experience of a specific insured group. Premiums may vary by age, gender, or other risk factors Factors affecting the level of medical care demand include all of the following except: a. physician factors b. economic standing c. health status d. demographic characteristics e. price of medical care - RIGHT ANSWER -Price of medical care Final outcome - RIGHT ANSWER -: The long-term results of a medical intervention, such as medical events prevented, deaths avoided, or life years saved. Financial risk - RIGHT ANSWER -The risk associated with contractual obligations that require fixed monetary outlays. In 2001, life expectancy at birth in the United States was 77.2 years, increasing to 78.7 years in 2018. However, there remains a racial gap between Blacks and Whites. White life expectancy in 2018 was at 78.6 years, and Black life expectancy at 74.7 years. Causes of mortality reveals an interesting picture. Among Whites, __________ have a much higher rate than in Blacks, where __________ are much more prevalent. a. suicides and chronic respiratory disease; homicides and heart disease b. diabetes and homicides; accidents and cancer c. accidents and strokes; diabetes and suicide d. homicides and heart disease; accidents and Alzheimer's e. cancer and diabetes; suicides and stroke - RIGHT ANSWER -suicides and chronic respiratory disease; homicides and heart disease In 2018, the overall obesity rate in the United States (as measured by BMI > 30) is over _____ percent, with rates reaching higher than _____ percent among African American women a. 30; 40 b. 50; 60 c.40; 50 d. 20; 40 - RIGHT ANSWER -40; 50 Income elasticity of demand - RIGHT ANSWER -The sensitivity of demand to changes in consumer income, determined by the percentage change in quantity demanded relative to the percentage change in consumer income. Incremental cost-effectiveness ratio (ICER) - RIGHT ANSWER -A ratio used in cost-effectiveness analysis that compares the difference in the expected costs of two interventions relative to the difference in expected outcomes. Indemnity insurance - RIGHT ANSWER -Insurance based on the principle that someone suffering an economic loss receives a payment approximately equal to the size of the loss. Indirect cost - RIGHT ANSWER -: A cost that reflects the value the time taken from normal activities to receive medical care and recover from a procedure Insurance works best in situations where: a. there is a low probability of a large loss. b. there is a high probability of a large loss. c. there is a low probability of a small loss. d. there is a high probability of a small loss. e. the level of probability and the size of the loss are irrelevant. - RIGHT ANSWER -there is a low probability of a large loss. Insurers try to minimize moral hazard by: a. refusing to sell insurance to individuals with chronic illnesses. b. charging deductibles and coinsurance. c. only selling policies to individuals with high ethical standards. d. charging higher premiums to individuals than to groups. e. requiring advance payments of premiums - RIGHT ANSWER -charging deductibles and coinsurance. Intangible cost - RIGHT ANSWER -A cost that is not easily quantified, such as pain and suffering, anxiety, and disfigurement. Intermediate measure - RIGHT ANSWER -An outcome that occurs on the way to the final outcome, including heart attack, stroke, and scores on evaluative exams. Latrogenic disease - RIGHT ANSWER -An injury or illness resulting from medical treatment. Luxury or superior goods - RIGHT ANSWER -Goods are considered superior if an increase in consumer income causes the percentage of the consumer's income spent on the good to increase and vice versa. Major medical - RIGHT ANSWER -Health insurance to provide coverage for major illnesses requiring large financial outlays, characterized by payment for all expenses above a specified maximum out-of-pocket amount paid by the insured (often $2,000-$5,000). Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good? a. A superior good has an income elasticity of demand less than one. b. Superior goods are considered necessities. c. When the price of a superior good increases, consumers demand more of it. d. As consumer income increases, consumers spend more on superior goods. e. Consumers want more of a superior good regardless of its price. - RIGHT ANSWER -As consumer income increases, consumers spend more on superior goods Marginal social benefit - RIGHT ANSWER -The incremental benefit to society of producing and consuming an additional unit of a particular good Marginal social cost - RIGHT ANSWER -The incremental cost to society of producing and consuming an additional unit of a particular good Markov decision model - RIGHT ANSWER -A mathematical model used to depict a situation where outcomes are partially determined by disease progression and partially under the control of a decision maker. Markov model - RIGHT ANSWER -A model used in health care evaluation to depict a disease process that evolves and progresses over time. Moral hazard and adverse selection are both examples of: a. the principal-agent problem. b. perfect information. c. efficiency in markets. d. externalities in consumption. e. asymmetric information - RIGHT ANSWER -asymmetric information Morbidity - RIGHT ANSWER -The incidence and probability of illness or disability. Mortality - RIGHT ANSWER -The probability of death at different ages, usually expressed as the number of deaths for a given population, either 1,000 or 100,000, or the expected number of years of life remaining at a given age. Nash equilibrium - RIGHT ANSWER -A situation that emerges when all players in a non-cooperative game choose their dominant strategy and have nothing to gain (and can only lose) by changing from their initial strategies Necessity - RIGHT ANSWER -A good or service with an income elasticity between zero and one Physician-induced demand - RIGHT ANSWER -A situation in which providers take advantage of uninformed consumers by providing services that are largely unnecessary Preexisting condition - RIGHT ANSWER -A medical condition caused by an injury or disease that existed prior to the application for health insurance Preferred provider organization (PPO) - RIGHT ANSWER -A group of medical providers that has contracted with an insurance company or employer to provide health care services to a well-defined group according to a well-defined fee schedule. By accepting discount fees, providers are included on the list of preferred providers. Principal-agent relationship - RIGHT ANSWER -A relationship in which one person (the principal) gives another person (the agent) authority to make decisions on his or her behalf. Prisoner's dilemma - RIGHT ANSWER -: A paradox in game theory where players acting in their own self-interest choose their dominant strategies and do not achieve the optimal outcome. In such cases, cooperation, not competition, will result in a more profitable outcome. Probability - RIGHT ANSWER -The likelihood or chance that an event will occur. Probability is measured as a ratio that ranges in value from zero to one Public health - RIGHT ANSWER -Collective action undertaken by government agencies to ensure the health of the community. These efforts include the prevention of disease; identification of health problems; and the assurance of sanitary conditions, especially in the areas of water treatment and waste disposal Rate of return - RIGHT ANSWER -The amount earned on an investment translated into an annual interest rate. Reinsurance - RIGHT ANSWER -Stop-loss insurance purchased by a health plan to protect itself against losses that exceed a specific dollar amount per claim, per individual, or per year. Researchers use cost-of-illness studies for all of the following except to: a. study the burden of a disease. b. determine the low-cost option to treat a disease. c. compare two or more treatment options when the medical outcome is identical. d. increase public awareness of the cost of treating certain diseases. e. compare the relative efficiency of treating various conditions. - RIGHT ANSWER -compare the relative efficiency of treating various conditions. Risk-averse - RIGHT ANSWER -Describes a person who prefers to avoid uncertain outcomes. Self-insurance - RIGHT ANSWER -A group practice of not buying health insurance but setting aside funds to cover the projected losses incurred by one member of the group. Social insurance - RIGHT ANSWER -Serves as the basis of all government redistribution programs. An insurance plan supported by tax revenues and available to everyone regardless of age, health status, and ability to pay Standard gamble - RIGHT ANSWER -: Serves as the theoretical basis for expected utility theory. A measure of a person's willingness to accept the risk of certain death to avoid the disutility of a particular health state. Suppose a group of 100 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $150,000. If an additional 10 people who have expected medical spending of $5,000 per person on average join the group, the new premium will be approximately: a. $5,822 b. $2,139 c. $1,818 d. $2,090 e. $2,300 - RIGHT ANSWER -$2,139 Suppose you must rely exclusively on cost-effectiveness analysis (CEA) to determine whether a category of people receives, potentially life-saving, intervention. Which of the following considerations must you keep in mind when making your decision? a. CEA studies are considered the gold standard as far as evaluation studies are concerned b. CEA ignores the possibility that certain unidentified individuals in a group may have a greater than normal positive response to the treatment c. CEA studies take a long time to conduct and are expensive to evaluate d. CEA studies are subjective and rely on the judgment of clinicians and researchers. e. CEA determines the efficient threshold above which treatments are unnecessarily expensive. - RIGHT ANSWER -CEA ignores the possibility that certain unidentified individuals in a group may have a greater than normal positive response to the treatment Suppose your assignment is to use the standard time trade-off approach to measure quality of life. You are given the following information: An individual is faced with living the remaining 10 years of their life suffering from severe osteoporosis. The individual reveals that they would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in a chronic health state relative to perfect health? a. 6 b. 4 c. 40 d. 0.4 e. 0.6 - RIGHT ANSWER -0.6 Surrogate measure - RIGHT ANSWER -A marker, or reliable substitute, for a disease process. Usually a laboratory measure such as high blood pressure and elevated cholesterol levels as a surrogate for heart disease The concept of quality-adjusted life year (QALY): a. is given an arbitrary value when applied to a real world problem. b. is a multidisciplinary approach to measuring health status. c. is used extensively to evaluate medical care resource allocation within government-run programs on fixed budgets, especially in Europe. d. has little application to medical decision making. e. is used extensively in the United States to evaluate health care programs. - RIGHT ANSWER -is used extensively to evaluate medical care resource allocation within government-run programs on fixed budgets, especially in Europe. The direct costs in an economic evaluation include all of the following except: a. reduced productivity at work. b. transportation to and from the physician's office. c. the cost of home remodeling to accommodate a physical handicap. d. hospitalization. e. medical devices. - RIGHT ANSWER -reduced productivity at work. The economic argument for legalizing drugs a. is really politically motivated. b. takes into consideration all the externalities associated with drug use. c. is based on the assumption that for most non-users, the demand is relatively price elastic d. is morally bankrupt. e. shows that economists are all libertarians at heart - RIGHT ANSWER -is based on the assumption that for most non-users, the demand is relatively price elastic The goal of health insurance is to: a. collect sufficient premiums to cover all possible losses. b. equalize the availability of medical care across population groups. c. spread risk over a large group of people. d. equally distribute the probability of loss over a large number of people. e. redistribute income from the sick to the healthy. - RIGHT ANSWER -collect sufficient premiums to cover all possible losses. The intangible costs associated with reduced quality of life include: productivity at work. b. the cost of home remodeling to accommodate a physical handicap. c. household services that must be replaced, such as housework. d. pain and suffering. e. potential income lost due to premature death. - RIGHT ANSWER -Pain and suffering The nature of health care delivery will be different in the future due to: a. longer lives due to a lower incidence of chronic illness. b. a rising percentage of elderly in the total population. c. cheaper alternatives to treatments in oncology. d. longer inpatient hospital stays due to a decrease in acute illnesses among the elderly population. e. an expected increase in the fertility rate. - RIGHT ANSWER -a rising percentage of elderly in the total population. The primary tasks required to conduct a successful cost effectiveness study are all of the following except: a. adequately measuring the effectiveness of the procedures evaluated. b. ranking the alternatives in terms of overall costs. c. identifying and measuring all relevant costs. d. identifying the overall cost of a health condition on society. e. establishing the relevant alternative(s) for comparison. - RIGHT ANSWER -identifying the overall cost of a health condition on society. The standard cut-off for cost per quality-adjusted life year (QALY) used by most governmental decision makers is set in terms of a multiple of national per capita income. The value of the threshold is usually what percent of national per capita income? a. 100 b. 300 c. 200 d. 250 e. 150 - RIGHT ANSWER -100 The U.S. perinatal mortality rate (late fetal deaths plus deaths in the neonatal period) was 5.9 in 2018, lower than those found in a. France, Switzerland, and the United Kingdom. b. Germany c. Japan d. Canada - RIGHT ANSWER -France, Switzerland, and the United Kingdom. There are substantial differences in medical care use by demographic characteristics such as age, sex, and marital status. Which of the following statements is true? a. Infant girls are healthier than infant boys are and consume fewer medical resources. b. Average hospital stays are longer for women than men. c. People aged80 or more spend about the same amount on medical care as 60 year olds do. d. Adult women spend more money on medical care than men do. e. Single individuals regardless of age are hospitalized less than married people are. - RIGHT ANSWER -Adult women spend more money on medical care than men do. Uncertainty - RIGHT ANSWER -A state in which multiple outcomes are possible but the likelihood of any one outcome is not known Under which of the following circumstances is the principal-agent relationship likely to be most problematic? a. Between hospitals and nurses b. Between dentists and physicians c. Between general practitioners and patients d. Between surgeons and patients e. Between physicians and lawyers - RIGHT ANSWER -Between surgeons and patients Underwriting - RIGHT ANSWER -The insurance practice of determining whether or not an application for insurance will be accepted. In the process, premiums are also determined What is responsible for over one-half of the gap in life expectancy between the U.S. and Canada? a. Obesity b. Drug abuse c. Alcohol consumption d. Smoking e. Poor diet - RIGHT ANSWER -Obesity When area income increases by 20 percent, what occurs? a. quantity demanded rises by 10.0 percent. b. quantity demanded does not change. c. quantity demanded falls by 10.0 percent. d. quantity demanded falls by 7.5 percent. e. quantity demanded rises by 7.5 percent. - RIGHT ANSWER -quantity demanded rises by 10.0 percent When measuring the effectiveness of a treatment, surrogate measures reflect clinical efficacy and include: a. recurrence of the disease. b. hip fractures. c. death. d. scores on standard evaluative exams such as EuroQol or SF-36. e. bone-mass density (BMD) - RIGHT ANSWER -bone-mass density (BMD) Which of the following is least responsible for the reduction in mortality rates in Europe and North America? a. Improved sanitary conditions b. Reduced exposure to diseases c. Better nutrition and housing d. Clean water and waste disposal e. More effective medical interventions - RIGHT ANSWER -More effective medical interventions Which of the following measures of effectiveness is an intermediate measure? a. Tumor size b. Blood pressure c. Cholesterol level d. Bone-mass density (BMD) e. Hip fracture - RIGHT ANSWER -Hip fracture Which of the following would likely lead to the greatest improvement in the health status of the population in the United States? a. Higher per capita incomes b. More spending on public health c. More rural hospitals d. More medical care spending overall e. Improved lifestyles changes - RIGHT ANSWER -Improved lifestyles changes