CHAPTER 7 CMS EXAM ACTUAL UPDATE QUESTIONS
AND VERIFIED ANSWERS
What was CMS previously known as? - ANSWER HCFA (Health Care Financing Administration)
Where does CMS fit in the organization of the federal government? - ANSWER Within the HHS.
What is Medicare? - ANSWER Health insurance program for:
1) 65 & older
2) People under 65 with disabilities
3) All ages with ESRD
4) SCHIP (State Chrildren's Health Insurance Program)
What year was Medicare originated and under which president? - ANSWER 1965 under the
auspices of President Lyndon B. Johnson
What was the original plan for Medicares funding? - ANSWER Funded through payroll
deductions from citizens. Monies would be part of a "trust fund", but government has spent
money that is supposed to be in trust fund.
Who are the beneficiaries of Medicaid? - ANSWER Those whose incomes fall below the federally
adjusted poverty line. "indigent"
When Medicare was originally passed, how did it reimburse? - ANSWER Reimbursed hospitals
on the basis of their actual costs. "Retroactively"
AND VERIFIED ANSWERS
What was CMS previously known as? - ANSWER HCFA (Health Care Financing Administration)
Where does CMS fit in the organization of the federal government? - ANSWER Within the HHS.
What is Medicare? - ANSWER Health insurance program for:
1) 65 & older
2) People under 65 with disabilities
3) All ages with ESRD
4) SCHIP (State Chrildren's Health Insurance Program)
What year was Medicare originated and under which president? - ANSWER 1965 under the
auspices of President Lyndon B. Johnson
What was the original plan for Medicares funding? - ANSWER Funded through payroll
deductions from citizens. Monies would be part of a "trust fund", but government has spent
money that is supposed to be in trust fund.
Who are the beneficiaries of Medicaid? - ANSWER Those whose incomes fall below the federally
adjusted poverty line. "indigent"
When Medicare was originally passed, how did it reimburse? - ANSWER Reimbursed hospitals
on the basis of their actual costs. "Retroactively"
