MHA 708 EXAM B HEALTHCARE POLICY NEWEST
2026 ACTUAL EXAM| LSUS MHA 708 EXAM B REVIEW
WITH COMPLETE REAL EXAM QUESTIONS AND
CORRECT VERIFIED CORRECT ANSWERERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. Which of the following is a primary goal of health policy?
A) Maximizing physician income
B) Ensuring universal access to the latest technology
C) Balancing cost, quality, and access to care
D) Standardizing all medical procedures
Rationale: The "Iron Triangle" of healthcare policy posits that all policy decisions
are a balancing act between cost, quality, and access. While other options may be
secondary considerations or means to an end, the primary overarching goal is this
balance. (A, B, and D are too specific or extreme).
2. The Patient Protection and Affordable Care Act (ACA) of 2010 was primarily
designed to:
A) Eliminate private health insurance
B) Expand health insurance coverage to the uninsured
C) Reduce the number of hospital beds nationwide
D) Nationalize the healthcare system
Rationale: The ACA's central aim was to reduce the number of uninsured
Americans through mandates, subsidies, and Medicaid expansion. It did not
eliminate private insurance (A) or nationalize the system (D). (C) is incorrect as the
ACA focused on coverage, not directly reducing infrastructure.
,3. What is the primary function of the Centers for Medicare & Medicaid
Services (CMS)?
A) To regulate the pharmaceutical industry's pricing
B) To administer the Medicare, Medicaid, and CHIP programs
C) To provide direct primary care to veterans
D) To set national standards for medical education
Rationale: CMS is the federal agency responsible for administering these vital
public health insurance programs. (A) is regulated by the FDA, (C) is the VA's role,
and (D) is managed by accrediting bodies and the ACGME.
4. Medicaid is best described as:
A) A federal program for individuals over 65
B) A joint federal-state program for low-income individuals
C) A fully private insurance program
D) A program solely for disabled individuals under 65
Rationale: Medicaid is a means-tested entitlement program funded and
administered jointly by the federal and state governments. (A) describes Medicare.
(C) is false, and (D) is an oversimplification.
5. The concept of "moral hazard" in health insurance refers to:
A) The unethical behavior of physicians
B) The overuse of healthcare services because individuals are insulated from the
full cost
,C) The underinsurance of the working poor
D) The practice of defensive medicine
Rationale: Moral hazard describes the phenomenon where insurance reduces the
marginal cost of care, leading to increased utilization and potentially higher overall
spending. (A) is ethical misconduct; (C) is a socio-economic issue; (D) is a risk-
management behavior.
6. A cost-benefit analysis (CBA) in healthcare policy differs from a cost-
effectiveness analysis (CEA) primarily because CBA:
A) Measures outcomes in natural units (e.g., life-years)
B) Only accounts for direct medical costs
C) Monetizes all outcomes and benefits
D) Is used exclusively for pharmaceutical drugs
Rationale: CBA converts all outcomes into monetary units to determine if benefits
outweigh costs, whereas CEA measures outcomes in natural units (like life-years
gained). (A) describes CEA. (B) is inaccurate, and (D) is false.
7. Which model of healthcare is characterized by government ownership and
financing of healthcare services?
A) The Bismarck Model
B) The Beveridge Model
C) The National Health Insurance Model
D) The Out-of-Pocket Model
, Rationale: The Beveridge Model (e.g., UK) features a single-payer system where
the government both finances and provides care through public hospitals and
salaried staff. (A) uses private providers, (C) is single-payer but private delivery, (D)
is unregulated.
8. The "individual mandate" under the ACA was upheld by the Supreme Court
as a:
A) Constitutional requirement to buy a product
B) Tax
C) Penalty for non-participation in Medicare
D) State-level decision only
Rationale: In NFIB v. Sebelius (2012), the Supreme Court upheld the individual
mandate under Congress's taxing power, ruling it a constitutional tax, not a penalty
or requirement to purchase a product.
9. What is a "health maintenance organization" (HMO)?
A) A fee-for-service insurance plan
B) A managed care plan where enrollees must use a network of providers and
have a PCP
C) A plan that allows out-of-network coverage at higher costs
D) A government-run insurance program
Rationale: HMOs are characterized by a defined network, a gatekeeper (PCP) who
coordinates care, and generally require referrals for specialists. (A) is the opposite;
(C) describes a PPO; (D) is inaccurate.
2026 ACTUAL EXAM| LSUS MHA 708 EXAM B REVIEW
WITH COMPLETE REAL EXAM QUESTIONS AND
CORRECT VERIFIED CORRECT ANSWERERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. Which of the following is a primary goal of health policy?
A) Maximizing physician income
B) Ensuring universal access to the latest technology
C) Balancing cost, quality, and access to care
D) Standardizing all medical procedures
Rationale: The "Iron Triangle" of healthcare policy posits that all policy decisions
are a balancing act between cost, quality, and access. While other options may be
secondary considerations or means to an end, the primary overarching goal is this
balance. (A, B, and D are too specific or extreme).
2. The Patient Protection and Affordable Care Act (ACA) of 2010 was primarily
designed to:
A) Eliminate private health insurance
B) Expand health insurance coverage to the uninsured
C) Reduce the number of hospital beds nationwide
D) Nationalize the healthcare system
Rationale: The ACA's central aim was to reduce the number of uninsured
Americans through mandates, subsidies, and Medicaid expansion. It did not
eliminate private insurance (A) or nationalize the system (D). (C) is incorrect as the
ACA focused on coverage, not directly reducing infrastructure.
,3. What is the primary function of the Centers for Medicare & Medicaid
Services (CMS)?
A) To regulate the pharmaceutical industry's pricing
B) To administer the Medicare, Medicaid, and CHIP programs
C) To provide direct primary care to veterans
D) To set national standards for medical education
Rationale: CMS is the federal agency responsible for administering these vital
public health insurance programs. (A) is regulated by the FDA, (C) is the VA's role,
and (D) is managed by accrediting bodies and the ACGME.
4. Medicaid is best described as:
A) A federal program for individuals over 65
B) A joint federal-state program for low-income individuals
C) A fully private insurance program
D) A program solely for disabled individuals under 65
Rationale: Medicaid is a means-tested entitlement program funded and
administered jointly by the federal and state governments. (A) describes Medicare.
(C) is false, and (D) is an oversimplification.
5. The concept of "moral hazard" in health insurance refers to:
A) The unethical behavior of physicians
B) The overuse of healthcare services because individuals are insulated from the
full cost
,C) The underinsurance of the working poor
D) The practice of defensive medicine
Rationale: Moral hazard describes the phenomenon where insurance reduces the
marginal cost of care, leading to increased utilization and potentially higher overall
spending. (A) is ethical misconduct; (C) is a socio-economic issue; (D) is a risk-
management behavior.
6. A cost-benefit analysis (CBA) in healthcare policy differs from a cost-
effectiveness analysis (CEA) primarily because CBA:
A) Measures outcomes in natural units (e.g., life-years)
B) Only accounts for direct medical costs
C) Monetizes all outcomes and benefits
D) Is used exclusively for pharmaceutical drugs
Rationale: CBA converts all outcomes into monetary units to determine if benefits
outweigh costs, whereas CEA measures outcomes in natural units (like life-years
gained). (A) describes CEA. (B) is inaccurate, and (D) is false.
7. Which model of healthcare is characterized by government ownership and
financing of healthcare services?
A) The Bismarck Model
B) The Beveridge Model
C) The National Health Insurance Model
D) The Out-of-Pocket Model
, Rationale: The Beveridge Model (e.g., UK) features a single-payer system where
the government both finances and provides care through public hospitals and
salaried staff. (A) uses private providers, (C) is single-payer but private delivery, (D)
is unregulated.
8. The "individual mandate" under the ACA was upheld by the Supreme Court
as a:
A) Constitutional requirement to buy a product
B) Tax
C) Penalty for non-participation in Medicare
D) State-level decision only
Rationale: In NFIB v. Sebelius (2012), the Supreme Court upheld the individual
mandate under Congress's taxing power, ruling it a constitutional tax, not a penalty
or requirement to purchase a product.
9. What is a "health maintenance organization" (HMO)?
A) A fee-for-service insurance plan
B) A managed care plan where enrollees must use a network of providers and
have a PCP
C) A plan that allows out-of-network coverage at higher costs
D) A government-run insurance program
Rationale: HMOs are characterized by a defined network, a gatekeeper (PCP) who
coordinates care, and generally require referrals for specialists. (A) is the opposite;
(C) describes a PPO; (D) is inaccurate.
