MHA BOST 707 EXAM 3 Questions
with 100% Correct Answers Latest
Version 2026 Graded A+
1. What is non-marketability of risk in healthcare?
Answer>> Non-marketability of risk refers to the inherent difficulty
(or impossibility) of putting a precise market price on many
medical risks, treatments, or outcomes due to uncertainty, ethics,
and the nature of medicine.
Elaboration Unlike insurable risks (e.g., car accidents), medical
risks involve life/death, pain, and unpredictable outcomes that
cannot be fully commodified. This limits pure market solutions and
explains why healthcare often requires regulation, subsidies, or
public provision.
2. Name and briefly explain the three evaluation criteria for a
healthcare system according to Aday (or common frameworks).
Answer>> The three main criteria are:
-Quality — Effectiveness and safety of care (e.g., low post-
surgical complication rates in an ambulatory surgery center for
cataract patients).
-Equity — Fair distribution of access and outcomes (e.g.,
similar chronic disease mortality rates across
,socioeconomic groups or regions).
- Efficiency — Optimal use of resources relative to outcomes
(e.g., low cost and resource use for cataract surgery while
maintaining quality).
Elaboration These criteria help compare systems
nationally/globally. U.S. often excels in quality/innovation but
lags in equity and efficiency compared to many OECD countries.
3. What are managed care organizations (MCOs), and what
distinguishes them? Give an example.
Answer>> Managed care organizations integrate financing and
delivery to control costs and utilization. Their distinguishing
feature is the ability to steer members to preferred providers,
negotiate discounted rates, and manage utilization (e.g.,
gatekeeping, prior authorization).
Elaboration Types include HMOs (staff/group models with
primary care gatekeepers), PPOs (more choice but higher cost-
sharing for out-of-network), and EPOs. Example: UnitedHealth
Group was the largest MCO in recent years. They contrast with
traditional indemnity insurance by actively intervening in care
decisions.
4. Discuss per household national health expenditures (NHE)
and their relation to median household income.
Answer>> In recent data, per household NHE is around levels
that make healthcare expenditures more than a significant portion
(often >20–25%) of median household income in the U.S.
Elaboration This highlights affordability issues — high spending
,crowds out other expenses and contributes to medical debt. It
underscores why cost control is a major policy focus.
.Here’s the continuation of MHA 707 Exam 3 preparation material,
building on the previous sets. This draws from the most consistent
themes across LSUS course resources (e.g., Quizlet study guides
for Exam 3/C, Chapter 6–8 financing and insurance topics,
NHEA/PHC breakdowns, and related concepts). I've added more
frequently tested questions with detailed, elaborated answers to
help you master the material.
These focus on deeper insurance mechanics, financing
structures, NHEA details, managed care evolution, and system
performance issues.
### 8. Define National Health Expenditure Accounts (NHEA) and
explain their key benefits and components.
Answer>> NHEA provides official estimates of health care spending
in the United States,
, measuring both health care consumption (e.g., direct services)
and health care investment (e.g., research, structures).
Elaboration Maintained by CMS (Centers for Medicare &
Medicaid Services), NHEA tracks total spending (e.g., ~$4.5+
trillion in recent years) by source (payers like private insurance,
Medicare, out-of-pocket) and type (hospital care, physician
services, prescription drugs).
Benefits:
-Comprehensive — Includes all major components in a unified,
mutually exclusive, and exhaustive structure.
-Multidimensional — Covers expenditures by payers (e.g., private
health insurance
~30–35%, Medicare ~20–25%, Medicaid ~15–20%) and by service
category.
- Allows trend analysis (e.g., growth rates, per capita spending) and
policy evaluation.
This data highlights why U.S. spending is high relative to
outcomes and informs debates on cost control.
### 9. What is Personal Health Care (PHC) expenditures, and
how do they relate to total health expenditures?
Answer>> PHC is a subset of total health care expenditures (HCE)
that includes all medical goods and services used directly to
diagnose, treat, and prevent health problems in specific
individuals (e.g., hospital care, physician services, prescription
drugs, dental, home health).
Elaboration PHC excludes public health activities, administration,
research, and capital investments. Largest contributors to PHC:
with 100% Correct Answers Latest
Version 2026 Graded A+
1. What is non-marketability of risk in healthcare?
Answer>> Non-marketability of risk refers to the inherent difficulty
(or impossibility) of putting a precise market price on many
medical risks, treatments, or outcomes due to uncertainty, ethics,
and the nature of medicine.
Elaboration Unlike insurable risks (e.g., car accidents), medical
risks involve life/death, pain, and unpredictable outcomes that
cannot be fully commodified. This limits pure market solutions and
explains why healthcare often requires regulation, subsidies, or
public provision.
2. Name and briefly explain the three evaluation criteria for a
healthcare system according to Aday (or common frameworks).
Answer>> The three main criteria are:
-Quality — Effectiveness and safety of care (e.g., low post-
surgical complication rates in an ambulatory surgery center for
cataract patients).
-Equity — Fair distribution of access and outcomes (e.g.,
similar chronic disease mortality rates across
,socioeconomic groups or regions).
- Efficiency — Optimal use of resources relative to outcomes
(e.g., low cost and resource use for cataract surgery while
maintaining quality).
Elaboration These criteria help compare systems
nationally/globally. U.S. often excels in quality/innovation but
lags in equity and efficiency compared to many OECD countries.
3. What are managed care organizations (MCOs), and what
distinguishes them? Give an example.
Answer>> Managed care organizations integrate financing and
delivery to control costs and utilization. Their distinguishing
feature is the ability to steer members to preferred providers,
negotiate discounted rates, and manage utilization (e.g.,
gatekeeping, prior authorization).
Elaboration Types include HMOs (staff/group models with
primary care gatekeepers), PPOs (more choice but higher cost-
sharing for out-of-network), and EPOs. Example: UnitedHealth
Group was the largest MCO in recent years. They contrast with
traditional indemnity insurance by actively intervening in care
decisions.
4. Discuss per household national health expenditures (NHE)
and their relation to median household income.
Answer>> In recent data, per household NHE is around levels
that make healthcare expenditures more than a significant portion
(often >20–25%) of median household income in the U.S.
Elaboration This highlights affordability issues — high spending
,crowds out other expenses and contributes to medical debt. It
underscores why cost control is a major policy focus.
.Here’s the continuation of MHA 707 Exam 3 preparation material,
building on the previous sets. This draws from the most consistent
themes across LSUS course resources (e.g., Quizlet study guides
for Exam 3/C, Chapter 6–8 financing and insurance topics,
NHEA/PHC breakdowns, and related concepts). I've added more
frequently tested questions with detailed, elaborated answers to
help you master the material.
These focus on deeper insurance mechanics, financing
structures, NHEA details, managed care evolution, and system
performance issues.
### 8. Define National Health Expenditure Accounts (NHEA) and
explain their key benefits and components.
Answer>> NHEA provides official estimates of health care spending
in the United States,
, measuring both health care consumption (e.g., direct services)
and health care investment (e.g., research, structures).
Elaboration Maintained by CMS (Centers for Medicare &
Medicaid Services), NHEA tracks total spending (e.g., ~$4.5+
trillion in recent years) by source (payers like private insurance,
Medicare, out-of-pocket) and type (hospital care, physician
services, prescription drugs).
Benefits:
-Comprehensive — Includes all major components in a unified,
mutually exclusive, and exhaustive structure.
-Multidimensional — Covers expenditures by payers (e.g., private
health insurance
~30–35%, Medicare ~20–25%, Medicaid ~15–20%) and by service
category.
- Allows trend analysis (e.g., growth rates, per capita spending) and
policy evaluation.
This data highlights why U.S. spending is high relative to
outcomes and informs debates on cost control.
### 9. What is Personal Health Care (PHC) expenditures, and
how do they relate to total health expenditures?
Answer>> PHC is a subset of total health care expenditures (HCE)
that includes all medical goods and services used directly to
diagnose, treat, and prevent health problems in specific
individuals (e.g., hospital care, physician services, prescription
drugs, dental, home health).
Elaboration PHC excludes public health activities, administration,
research, and capital investments. Largest contributors to PHC:
