NEWEST LSUS MHA 708 EXAM C HEALTHCARE
POLICY COMPLETE 100 PRACTICE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONLAS LATEST UPDATES 2026-2027 (100%
CORRECT VERIFIED ANSWERS) ALREADY
GRADED A+
1. Which of the following best describes the primary goal of the Affordable Care
Act (ACA) regarding insurance coverage?
A. Replace all private insurance with a single-payer system
B. Expand access to affordable health insurance while reducing the number of
uninsured
C. Eliminate employer-sponsored insurance entirely
D. Limit Medicaid expansion to childless adults only
Rationale: The ACA aimed to increase coverage through mandates, marketplaces,
and Medicaid expansion, not to eliminate private insurance or create a single-payer
system.
2. The individual mandate penalty under the ACA was effectively reduced to $0
starting in which year?
A. 2014
B. 2016
C. *2019*
D. 2021
,Rationale: The Tax Cuts and Jobs Act of 2017 set the penalty to $0 effective 2019,
though some states have since implemented their own mandates.
3. Which Supreme Court case upheld the constitutionality of the ACA’s individual
mandate as a tax?
A. National Federation of Independent Business v. Sebelius (2012)
B. King v. Burwell (2015)
C. California v. Texas (2021)
D. Burwell v. Hobby Lobby (2014)
Rationale: The 2012 ruling found the mandate constitutional under Congress’s
taxing power, though Medicaid expansion was limited.
4. Medicare Part A primarily covers:
A. Physician visits and outpatient services
B. Inpatient hospital stays, skilled nursing facility care, and some home health
C. Prescription drugs
D. Dental and vision care
Rationale: Part A is hospital insurance, covering inpatient care. Part B covers
outpatient, Part D covers drugs.
5. Which federal program provides health coverage for low-income individuals and
families based on income and other criteria?
A. Medicare
B. Medicaid
C. CHIP
D. TRICARE
Rationale: Medicaid is means-tested; Medicare is age/disability-based; CHIP
covers children in families with incomes too high for Medicaid.
,6. The Children’s Health Insurance Program (CHIP) was created in which year?
A. 1992
B. *1997*
C. 2001
D. 2006
Rationale: CHIP was enacted as part of the Balanced Budget Act of 1997 to cover
uninsured children.
7. The “donut hole” in Medicare Part D refers to:
A. The initial deductible period
B. A coverage gap where beneficiaries pay a higher share of drug costs before
catastrophic coverage begins
C. The income-related monthly adjustment amount
D. The exclusion of specialty drugs from formularies
Rationale: The donut hole was a gap between initial coverage and catastrophic
coverage, largely closed by the ACA by 2020.
8. Which of the following is a key feature of a single-payer healthcare system?
A. Multiple private insurers compete for enrollees
B. One public entity finances healthcare, but delivery may remain private
C. Out-of-pocket payments cover most services
D. Employers are required to provide coverage
Rationale: Single-payer means government financing; Canada’s system is an
example. Private insurance may exist for non-covered services.
9. The Emergency Medical Treatment and Active Labor Act (EMTALA) requires
hospitals that accept Medicare to:
A. Provide free primary care to all patients
B. Provide emergency stabilizing care regardless of ability to pay
C. Admit all patients for observation for 24 hours
D. Obtain prior authorization for all ER visits
, Rationale: EMTALA (1986) prevents patient dumping; it mandates emergency
screening and stabilization.
10. What is the main purpose of the Health Insurance Portability and
Accountability Act (HIPAA) of 1996?
A. Establish national health insurance
B. Protect the privacy and security of patient health information
C. Mandate electronic health records for all providers
D. Create health savings accounts
Rationale: HIPAA includes privacy, security, and breach notification rules; it also
includes portability provisions for group coverage.
11. The MACRA (Medicare Access and CHIP Reauthorization Act of 2015)
replaced the Sustainable Growth Rate (SGR) formula with:
A. Diagnosis-related groups (DRGs)
B. The Quality Payment Program (QPP), including MIPS and Advanced APMs
C. Medicare Advantage capitation rates
D. Fee-for-service with no adjustments
Rationale: MACRA repealed SGR and created MIPS (Merit-based Incentive
Payment System) and APMs to reward value.
12. Which of the following is a primary driver of rising U.S. healthcare spending?
A. Lower administrative costs
B. High prices for medical services, pharmaceuticals, and technology
C. Decreased demand for elective procedures
D. Universal adoption of capitated payment models
Rationale: The U.S. pays higher prices for similar services than other developed
nations; utilization is not the main driver.
POLICY COMPLETE 100 PRACTICE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONLAS LATEST UPDATES 2026-2027 (100%
CORRECT VERIFIED ANSWERS) ALREADY
GRADED A+
1. Which of the following best describes the primary goal of the Affordable Care
Act (ACA) regarding insurance coverage?
A. Replace all private insurance with a single-payer system
B. Expand access to affordable health insurance while reducing the number of
uninsured
C. Eliminate employer-sponsored insurance entirely
D. Limit Medicaid expansion to childless adults only
Rationale: The ACA aimed to increase coverage through mandates, marketplaces,
and Medicaid expansion, not to eliminate private insurance or create a single-payer
system.
2. The individual mandate penalty under the ACA was effectively reduced to $0
starting in which year?
A. 2014
B. 2016
C. *2019*
D. 2021
,Rationale: The Tax Cuts and Jobs Act of 2017 set the penalty to $0 effective 2019,
though some states have since implemented their own mandates.
3. Which Supreme Court case upheld the constitutionality of the ACA’s individual
mandate as a tax?
A. National Federation of Independent Business v. Sebelius (2012)
B. King v. Burwell (2015)
C. California v. Texas (2021)
D. Burwell v. Hobby Lobby (2014)
Rationale: The 2012 ruling found the mandate constitutional under Congress’s
taxing power, though Medicaid expansion was limited.
4. Medicare Part A primarily covers:
A. Physician visits and outpatient services
B. Inpatient hospital stays, skilled nursing facility care, and some home health
C. Prescription drugs
D. Dental and vision care
Rationale: Part A is hospital insurance, covering inpatient care. Part B covers
outpatient, Part D covers drugs.
5. Which federal program provides health coverage for low-income individuals and
families based on income and other criteria?
A. Medicare
B. Medicaid
C. CHIP
D. TRICARE
Rationale: Medicaid is means-tested; Medicare is age/disability-based; CHIP
covers children in families with incomes too high for Medicaid.
,6. The Children’s Health Insurance Program (CHIP) was created in which year?
A. 1992
B. *1997*
C. 2001
D. 2006
Rationale: CHIP was enacted as part of the Balanced Budget Act of 1997 to cover
uninsured children.
7. The “donut hole” in Medicare Part D refers to:
A. The initial deductible period
B. A coverage gap where beneficiaries pay a higher share of drug costs before
catastrophic coverage begins
C. The income-related monthly adjustment amount
D. The exclusion of specialty drugs from formularies
Rationale: The donut hole was a gap between initial coverage and catastrophic
coverage, largely closed by the ACA by 2020.
8. Which of the following is a key feature of a single-payer healthcare system?
A. Multiple private insurers compete for enrollees
B. One public entity finances healthcare, but delivery may remain private
C. Out-of-pocket payments cover most services
D. Employers are required to provide coverage
Rationale: Single-payer means government financing; Canada’s system is an
example. Private insurance may exist for non-covered services.
9. The Emergency Medical Treatment and Active Labor Act (EMTALA) requires
hospitals that accept Medicare to:
A. Provide free primary care to all patients
B. Provide emergency stabilizing care regardless of ability to pay
C. Admit all patients for observation for 24 hours
D. Obtain prior authorization for all ER visits
, Rationale: EMTALA (1986) prevents patient dumping; it mandates emergency
screening and stabilization.
10. What is the main purpose of the Health Insurance Portability and
Accountability Act (HIPAA) of 1996?
A. Establish national health insurance
B. Protect the privacy and security of patient health information
C. Mandate electronic health records for all providers
D. Create health savings accounts
Rationale: HIPAA includes privacy, security, and breach notification rules; it also
includes portability provisions for group coverage.
11. The MACRA (Medicare Access and CHIP Reauthorization Act of 2015)
replaced the Sustainable Growth Rate (SGR) formula with:
A. Diagnosis-related groups (DRGs)
B. The Quality Payment Program (QPP), including MIPS and Advanced APMs
C. Medicare Advantage capitation rates
D. Fee-for-service with no adjustments
Rationale: MACRA repealed SGR and created MIPS (Merit-based Incentive
Payment System) and APMs to reward value.
12. Which of the following is a primary driver of rising U.S. healthcare spending?
A. Lower administrative costs
B. High prices for medical services, pharmaceuticals, and technology
C. Decreased demand for elective procedures
D. Universal adoption of capitated payment models
Rationale: The U.S. pays higher prices for similar services than other developed
nations; utilization is not the main driver.
