LSUS MHA 706 MIDTERM 200 ACTUAL EXAM
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Corporations: Pros & Cons.
Answer: Pros: Unlimited life, easy transfer of ownership, limited
liability, ease of raising capital.
Cons: Cost of formation and reporting, double or triple taxes must be
paid.
◉ Non-profit Organization.
Answer: Exempt from taxes. Goal is to improve community.
◉ For-profit Organizations.
Answer: (Investor Owned) Goal is to maximize shareholder return.
Owe taxes.
◉ Agency Problem.
Answer: the possibility of conflict of interest between the
stockholders and management of a firm.
,Example: Hire someone to carry out a job function, but they go out of
their interests instead of best interests of company/organization.
◉ Third-party payor system in the US (i.e. private vs public).
Answer: Private: Blue Cross Blue Shield, Commercial Insurers, Self-
Insurers. (AETNA)
Public: Medicare and Medicaid-both offer services to different levels.
"Safety net" Lowest reimbursement rates.
◉ Reimbursement methods (fee-for-service vs. capitation).
Answer: Fee for Service: payment is tied to amount of services
provided. (Decades ago) *Dental industry*
Capitation: payment is tied to the size of the covered population
(number of enrollees) Payment is based on per # per month.
*Decreasing utilization* Population is healthier.
◉ Medicare reimbursement for different types of providers.
Answer: Medicare parts A, B & C.
◉ Medicare Part A (aka Hospital Insurance or HI).
Answer: Provides hospital insurance automatically at age 65 (if FICA
qualified) at no fee but may have deductible & co-pay.
, ◉ Medicare Part B.
Answer: The part of the Medicare program that pays for physician
services, outpatient hospital services, durable medical equipment,
and other services and supplies.
◉ Medicare Part C (Medicare Advantage).
Answer: •Replaces and covers expenses found in Part A and B
•Medicare private fee-for-service plans (PFFS)
•Medicare managed care plans (HMOs and PPOs)
•Medicare specialty plans
◉ Medicare—Part D Prescription Drug Coverage.
Answer: a United States federal-government program to subsidize
the costs of prescription drugs and prescription drug insurance
premiums for Medicare beneficiaries.
◉ Impact of the Affordable Care Act (what the bill changed about the
healthcare environment).
Answer: Created new standards, individual mandates, exchanges,
and Medicaid expansion.
Focused on quality through clinical compensation, bundled
payment, value-based purchasing.
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Corporations: Pros & Cons.
Answer: Pros: Unlimited life, easy transfer of ownership, limited
liability, ease of raising capital.
Cons: Cost of formation and reporting, double or triple taxes must be
paid.
◉ Non-profit Organization.
Answer: Exempt from taxes. Goal is to improve community.
◉ For-profit Organizations.
Answer: (Investor Owned) Goal is to maximize shareholder return.
Owe taxes.
◉ Agency Problem.
Answer: the possibility of conflict of interest between the
stockholders and management of a firm.
,Example: Hire someone to carry out a job function, but they go out of
their interests instead of best interests of company/organization.
◉ Third-party payor system in the US (i.e. private vs public).
Answer: Private: Blue Cross Blue Shield, Commercial Insurers, Self-
Insurers. (AETNA)
Public: Medicare and Medicaid-both offer services to different levels.
"Safety net" Lowest reimbursement rates.
◉ Reimbursement methods (fee-for-service vs. capitation).
Answer: Fee for Service: payment is tied to amount of services
provided. (Decades ago) *Dental industry*
Capitation: payment is tied to the size of the covered population
(number of enrollees) Payment is based on per # per month.
*Decreasing utilization* Population is healthier.
◉ Medicare reimbursement for different types of providers.
Answer: Medicare parts A, B & C.
◉ Medicare Part A (aka Hospital Insurance or HI).
Answer: Provides hospital insurance automatically at age 65 (if FICA
qualified) at no fee but may have deductible & co-pay.
, ◉ Medicare Part B.
Answer: The part of the Medicare program that pays for physician
services, outpatient hospital services, durable medical equipment,
and other services and supplies.
◉ Medicare Part C (Medicare Advantage).
Answer: •Replaces and covers expenses found in Part A and B
•Medicare private fee-for-service plans (PFFS)
•Medicare managed care plans (HMOs and PPOs)
•Medicare specialty plans
◉ Medicare—Part D Prescription Drug Coverage.
Answer: a United States federal-government program to subsidize
the costs of prescription drugs and prescription drug insurance
premiums for Medicare beneficiaries.
◉ Impact of the Affordable Care Act (what the bill changed about the
healthcare environment).
Answer: Created new standards, individual mandates, exchanges,
and Medicaid expansion.
Focused on quality through clinical compensation, bundled
payment, value-based purchasing.
