MHA 707 Exam C (CH 6,7,8) | Questions with 100% Correct Answers | Verified | Latest Updated 2024 | Already Passed

Moral Hazard - When the act of insuring an event increases the likelihood that the event will happen behaving different when you know someone is taking the risk (induced demand) Adverse Selection - the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction the sicker people likely want more insurance, compared to those who are healthy Pooling of Risk - Allows individuals to share risk, i.e., insurance companies National Health Expenditure Accounts (NHEA) - Provides official estimates of health care spending in the US. It measures health care consumption and health care investment. NHEA Benefits - Comprehensive: includes all major components of health care system in unified, mutually exclusive, and exhaustive structure Multidimensional: encompasses expenditures as well as payers