UPDATED ACTUAL Exam Questions and
CORRECT Answers
American Medical Association (AMA) - CORRECT ANSWER - The largest association
of medical doctors (MDs) and doctors of osteopathy (DOs) in the United States. At the founding
meeting, delegates adopted the first code of medical ethics and established the nationwide
standards for preliminary medical education and the MD degree.
capitation - CORRECT ANSWER - A payment arrangement for healthcare service
providers by which they are paid a set amount for each enrolled person assigned to them, per
period of time, whether or not that person seeks care.
diagnosis-related group (DRG) - CORRECT ANSWER - Managed care's way of
classifying patients by diagnosis, average length of hospital stay, and therapy received. The
result is used to determine how much money healthcare providers will be paid to cover future
procedures and services, primarily for inpatient care.
disease-focused medicine - CORRECT ANSWER - A disease-based approach to treating
patients that is falling out of favor as more doctors shift their focus to preventive or restorative
medicine, sometimes called patient-focused or whole person-focused medicine.
donut hole - CORRECT ANSWER - A coverage gap for prescription drugs in Medicare
Part D; $2,800 and $4,550 annually is usually defined as the payment area that Medicare D will
not cover.
Flexner Report - CORRECT ANSWER - A report prepared by Abraham Flexner and
published in 1910 about the condition of medical education in the United States that led to
medical school reforms and standards and, ultimately, many school closings.
Health Maintenance Organization (HMO) - CORRECT ANSWER - A type of health
insurance plan where coverage of care is usually limited to doctors who work for or contract with
a specific organization. Care is generally integrated and focused on prevention and wellness.