HPA 210 Cumulative Final UPDATED
ACTUAL Exam Questions and CORRECT
Answers
T/F: As a country we spend more money on prescription drugs than we do on physician and
clinical services. - CORRECT ANSWER - False
The US spends roughly $_______________ on health care each year. - CORRECT
ANSWER - 3.1 trillion
Rank order highest to lowest US health care spending categories: - CORRECT
ANSWER - Hospital care, physician and clinical services, prescription drugs
T/F: The percent prescription drugs covered by insurance in 1960 is higher than the percent
prescription drugs covered by insurance today. - CORRECT ANSWER - False
The biggest payment for source for healthcare in the US is: - CORRECT ANSWER -
Public Health Insurance
What percent of Medicare beneficiaries have some form of supplemental insurance? -
CORRECT ANSWER - 90%
Roughly how many people receive health insurance coverage through Medicare: - CORRECT
ANSWER - 53.8 million
Medicare Advantage Plans fall under: - CORRECT ANSWER - Medicare Part C
Medicare Part A covers - CORRECT ANSWER - Hospital care, skilled nursing care and
home health services
, T/F: Medicare is a joint federal-state program that provides health care coverage to low-income
individuals. - CORRECT ANSWER - False
America's _______ past played a significant role in how health insurance developed. -
CORRECT ANSWER - industrial
community rating - CORRECT ANSWER - is a method of setting insurance premiums so
that risk is spread across a community (geographic region) AND is an insurance rating method
where all individuals pay the same rate regardless of age, gender, lifestyle characteristics and
health status
Because of the Employee Retirement Security Act, - CORRECT ANSWER - employer-
sponsored health plans that were self-insured were not subject to state insurance regulation AND
employer-sponsored health plans that were self-insured became subject to the federal ERISA
statute AND many large employers became self-insured.
States began enacting workers' compensation insurance in _______. - CORRECT
ANSWER - the early 1900s
By the 1960s _______ rating will all but replace _________ rating. - CORRECT
ANSWER - experience; community
T/F: Females tend to be more risk averse compared to males and are more likely to have health
insurance. - CORRECT ANSWER - true
There is ________ correlation between the size of a potential loss and purchasing insurance. -
CORRECT ANSWER - a positive
_______________ is the amount over and above the expected loss that one is willing to pay in
order to avoid the loss. - CORRECT ANSWER - risk premium
ACTUAL Exam Questions and CORRECT
Answers
T/F: As a country we spend more money on prescription drugs than we do on physician and
clinical services. - CORRECT ANSWER - False
The US spends roughly $_______________ on health care each year. - CORRECT
ANSWER - 3.1 trillion
Rank order highest to lowest US health care spending categories: - CORRECT
ANSWER - Hospital care, physician and clinical services, prescription drugs
T/F: The percent prescription drugs covered by insurance in 1960 is higher than the percent
prescription drugs covered by insurance today. - CORRECT ANSWER - False
The biggest payment for source for healthcare in the US is: - CORRECT ANSWER -
Public Health Insurance
What percent of Medicare beneficiaries have some form of supplemental insurance? -
CORRECT ANSWER - 90%
Roughly how many people receive health insurance coverage through Medicare: - CORRECT
ANSWER - 53.8 million
Medicare Advantage Plans fall under: - CORRECT ANSWER - Medicare Part C
Medicare Part A covers - CORRECT ANSWER - Hospital care, skilled nursing care and
home health services
, T/F: Medicare is a joint federal-state program that provides health care coverage to low-income
individuals. - CORRECT ANSWER - False
America's _______ past played a significant role in how health insurance developed. -
CORRECT ANSWER - industrial
community rating - CORRECT ANSWER - is a method of setting insurance premiums so
that risk is spread across a community (geographic region) AND is an insurance rating method
where all individuals pay the same rate regardless of age, gender, lifestyle characteristics and
health status
Because of the Employee Retirement Security Act, - CORRECT ANSWER - employer-
sponsored health plans that were self-insured were not subject to state insurance regulation AND
employer-sponsored health plans that were self-insured became subject to the federal ERISA
statute AND many large employers became self-insured.
States began enacting workers' compensation insurance in _______. - CORRECT
ANSWER - the early 1900s
By the 1960s _______ rating will all but replace _________ rating. - CORRECT
ANSWER - experience; community
T/F: Females tend to be more risk averse compared to males and are more likely to have health
insurance. - CORRECT ANSWER - true
There is ________ correlation between the size of a potential loss and purchasing insurance. -
CORRECT ANSWER - a positive
_______________ is the amount over and above the expected loss that one is willing to pay in
order to avoid the loss. - CORRECT ANSWER - risk premium
