HPA 210 Final Quizzes 1-3 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
1960s - CORRECT ANSWER - Medicare was introduced in the
Medicare and Medicaid - CORRECT ANSWER - Someone who is 68 years old with very
low income is eligible for
out of pocket - CORRECT ANSWER - one of the subsidies included in the ACA is called
"cost sharing reduction" which helps low income consumers pat for
Lizzy and Darcy both age the same lottery ticket with 50% chance winning 600 50% chance
winning nothing. Lizzy wants to sell the ticket for at least 280, whereas Darcy is willing to sell
the ticket for 200. This means: - CORRECT ANSWER - both are risk averse
Among the non-elderly (64 or younger) which type of health insurance coverage has the highest
proportion in the US population - CORRECT ANSWER - none of the above
only large employers - CORRECT ANSWER - Why type of employers is required by the
ACA to provide health insurance to their workers
physician service - CORRECT ANSWER - As an early form of managed care, the Blue
Shield originally covered
copays and deductibles - CORRECT ANSWER - What are common features of most
health insurance plans?
None of the above - CORRECT ANSWER - Which of the following is considered
individual coverage
, People want more/better insurance if they are more risk averse - CORRECT ANSWER -
Based on the 4 hypotheses of insurance discussed in class, people generally want more (or better)
health insurance if they:
1 - (800/100) = 20% - CORRECT ANSWER - A health insurance policy charges 1000 per
person as the gross premium, and out of that amount, only 800 per person is used to pay for
claims (cost directly related to medical care) what is the loading percentage of this insurance
policy?
Decrease - CORRECT ANSWER - When the size of the risk pool (ie the total number of
people in that risk pool) increases, while everything else stays the same, which of the following
will happen in terms of objective risk?
An insurer charges a particular group an amount based on community rating, but then modifying
the community rate for the group's specific demographic factors (age, gender, family
compositon, geography, etc.) - CORRECT ANSWER - Which of the following best
describes "adjusted community rating"?
Different health insurance plans were randomly assigned to people - CORRECT
ANSWER - Based on the textbook and our discussion in class, which of the following
enabled the RAND health insurance experience to find the true HMO effect (ie the extent to
which HMO actually lowered care utilization) and distinguish that from favorable selection?
individual's claim experience - CORRECT ANSWER - What CANNOT be used in
manual rating
Retrospective experience rating - CORRECT ANSWER - PSU is a group that is self-
insured. This is very similar to what?
HMO attracts people who use less care - CORRECT ANSWER - According to the
textbook and our discussion, people in HMOs use less healthcare and spend less on healthcare,
compared to those covered by traditional insurance. This is MOSTLY because
ACTUAL Exam Questions and CORRECT
Answers
1960s - CORRECT ANSWER - Medicare was introduced in the
Medicare and Medicaid - CORRECT ANSWER - Someone who is 68 years old with very
low income is eligible for
out of pocket - CORRECT ANSWER - one of the subsidies included in the ACA is called
"cost sharing reduction" which helps low income consumers pat for
Lizzy and Darcy both age the same lottery ticket with 50% chance winning 600 50% chance
winning nothing. Lizzy wants to sell the ticket for at least 280, whereas Darcy is willing to sell
the ticket for 200. This means: - CORRECT ANSWER - both are risk averse
Among the non-elderly (64 or younger) which type of health insurance coverage has the highest
proportion in the US population - CORRECT ANSWER - none of the above
only large employers - CORRECT ANSWER - Why type of employers is required by the
ACA to provide health insurance to their workers
physician service - CORRECT ANSWER - As an early form of managed care, the Blue
Shield originally covered
copays and deductibles - CORRECT ANSWER - What are common features of most
health insurance plans?
None of the above - CORRECT ANSWER - Which of the following is considered
individual coverage
, People want more/better insurance if they are more risk averse - CORRECT ANSWER -
Based on the 4 hypotheses of insurance discussed in class, people generally want more (or better)
health insurance if they:
1 - (800/100) = 20% - CORRECT ANSWER - A health insurance policy charges 1000 per
person as the gross premium, and out of that amount, only 800 per person is used to pay for
claims (cost directly related to medical care) what is the loading percentage of this insurance
policy?
Decrease - CORRECT ANSWER - When the size of the risk pool (ie the total number of
people in that risk pool) increases, while everything else stays the same, which of the following
will happen in terms of objective risk?
An insurer charges a particular group an amount based on community rating, but then modifying
the community rate for the group's specific demographic factors (age, gender, family
compositon, geography, etc.) - CORRECT ANSWER - Which of the following best
describes "adjusted community rating"?
Different health insurance plans were randomly assigned to people - CORRECT
ANSWER - Based on the textbook and our discussion in class, which of the following
enabled the RAND health insurance experience to find the true HMO effect (ie the extent to
which HMO actually lowered care utilization) and distinguish that from favorable selection?
individual's claim experience - CORRECT ANSWER - What CANNOT be used in
manual rating
Retrospective experience rating - CORRECT ANSWER - PSU is a group that is self-
insured. This is very similar to what?
HMO attracts people who use less care - CORRECT ANSWER - According to the
textbook and our discussion, people in HMOs use less healthcare and spend less on healthcare,
compared to those covered by traditional insurance. This is MOSTLY because
