MHA 707 Exam C 2024/2025 Exam
Questions Marking Scheme New Update
| A+ Rated
Moral Hazard - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔Allows individuals to share risk, i.e.,
insurance companies
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,National Health Expenditure Accounts (NHEA) - 🧠ANSWER ✔✔Provides
official estimates of health care spending in the US. It measures health
care consumption and health care investment.
NHEA Benefits - 🧠ANSWER ✔✔Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and
exhaustive structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal
comparisons
Published by DHHS
Accounts in the NHEA - 🧠ANSWER ✔✔National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, National Health Expenditures: NHE - 🧠ANSWER ✔✔all health care
consumption and investments in medical structures and equipment and
noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy
(buildings, research, equipment)
Health Consumption Expenditures: HCE - 🧠ANSWER ✔✔a subset of NHE,
includes personal health care spending, government administration and net
cost of private health insurance and public health activities
Personal Health Care: PHC - 🧠ANSWER ✔✔subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent
health problems of a specific person
How much NHE spent on Health Care? - 🧠ANSWER ✔✔$3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions Marking Scheme New Update
| A+ Rated
Moral Hazard - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔Allows individuals to share risk, i.e.,
insurance companies
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,National Health Expenditure Accounts (NHEA) - 🧠ANSWER ✔✔Provides
official estimates of health care spending in the US. It measures health
care consumption and health care investment.
NHEA Benefits - 🧠ANSWER ✔✔Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and
exhaustive structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal
comparisons
Published by DHHS
Accounts in the NHEA - 🧠ANSWER ✔✔National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, National Health Expenditures: NHE - 🧠ANSWER ✔✔all health care
consumption and investments in medical structures and equipment and
noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy
(buildings, research, equipment)
Health Consumption Expenditures: HCE - 🧠ANSWER ✔✔a subset of NHE,
includes personal health care spending, government administration and net
cost of private health insurance and public health activities
Personal Health Care: PHC - 🧠ANSWER ✔✔subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent
health problems of a specific person
How much NHE spent on Health Care? - 🧠ANSWER ✔✔$3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
