HPA 210 UPDATED Exam Questions and
CORRECT Answers
biggest payment source for healthcare - CORRECT ANSWER - 1. public health insurance
(39%) Medicare (20%) Medicaid (15%)
2. private health insurance (33%)
3. Out of pocket (12%)
how much does US spend on healthcare every year? - CORRECT ANSWER - US spends
roughly $3.1 trillion a year on health care
investment - CORRECT ANSWER - this category consists of research, structures, and
equipment
Other Payers - CORRECT ANSWER - this category comprises worksite health care,
workers' compensation, vocational rehabilitation, Indian Health Services, and maternal and child
health.
Other Public Health Insurance - CORRECT ANSWER - this category includes CHIP
(Children's Health Insurance Program) and Department of Defense and Veterans Affairs
Out-of-Pocket - CORRECT ANSWER - this category is made up of consumer spending
on deductibles, copays, co-insurance as well as goods and care not covered by insurance. It does
not include insurance premiums.
how much of GDP is healthcare - CORRECT ANSWER - 17.5%
health spending as a share of the GDP has increased from 5.4% in 1963 to its projected growth
of 19.3% in 2023 - CORRECT ANSWER -
,the average person spends $7,097 on health care each year - CORRECT ANSWER -
Females in the US spend more than males ($7,860/year vs. $6,313/year) - CORRECT
ANSWER -
the elderly pay the most for health care ($34,783/year for the 85+ cohort). - CORRECT
ANSWER -
Personal Health Care makes up 85% of Health Care Spending
Spending Category by Percentage
Hospital Care32%
Physician and Clinical Services20%
Dental Services4%
Other Professional Services3%
Rx Drugs9%
Other Medical Products3%
Nursing Care Facilities5%
Home Health Care3%
Other Health Care5%
Other makes up 15% of Health Care Spending
Spending Category Percentage
Net Cost of Health Insurance6%
Investments6%
Public Health Activities3%
Government Administration1% - CORRECT ANSWER -
,Hospital care, physician and clinical services, and prescription drug were the three top spending
categories in 1960 and remain so today. - CORRECT ANSWER -
1960, 96% of prescription drugs were purchased via out-of-pocket compared to 2014 when 16%
of prescription drugs were purchased via out-of-pocket. - CORRECT ANSWER -
the percent of out-of-pocket spending (as a payer source) decreased from 1960 to 2014. -
CORRECT ANSWER -
four primary ways Americans obtain health insurance coverage:
Medicare
Medicaid
Employer-sponsored insurance
Individual plans - CORRECT ANSWER -
Medicare is a federal social insurance program providing coverage to those 65 years of age and
older who have worked and paid into the system. Additionally, Medicare provides coverage for
people under 65 years who have permanent disabilities, end-stage renal (kidney) disease and
amyotrophic lateral sclerosis (ALS). - CORRECT ANSWER -
According to the US Department of Health and Human Services, 53.8 million people have
Medicare. - CORRECT ANSWER -
Part A: covers hospital care, skilled nursing care, and home health services. It is paid for by
payroll taxes. - CORRECT ANSWER -
Part B: covers physician services and durable medical equipment (e.g., wheelchairs, walkers,
blood sugar monitors, and oxygen equipment). It is paid for by general tax revenues (73%) and
monthly beneficiary premiums (25%). - CORRECT ANSWER -
, Part C: is also known as Medicare Advantage Plans or Medicare managed care programs offered
through private insurance companies that are approved by Medicare. Roughly one-quarter of
Medicare beneficiaries are enrolled in such plans. These plans cover all services provided
through Parts A and B and often times offer additional services and benefits. Medicare pays a
fixed amount to the insurance company for each beneficiary enrolled in its plan. Beneficiaries
also may be required to pay a monthly premium depending on the plan they select. - CORRECT
ANSWER -
Part D: covers prescription drugs. It is paid for by general tax revenues (73%), monthly
beneficiary premiums (14%) and state payments (13%). - CORRECT ANSWER -
nearly 90% of Medicare beneficiaries have some form of supplemental insurance - CORRECT
ANSWER -
33% of Medicare beneficiaries are enrolled in Medicare Advantage Plans - CORRECT
ANSWER -
25% of Medicare enrollees receive health insurance coverage through their employer or former
employer via employer-sponsored retiree coverage - CORRECT ANSWER -
17% of Medicare enrollees have Medigap plans designed to help offset deductibles, coinsurance,
and copays (in exchange for a monthly premium) - CORRECT ANSWER -
15% of Medicare enrollees are eligible for Medicaid (known as dual-eligible beneficiaries) -
CORRECT ANSWER -
Medicaid is a joint federal-state program with the federal government paying 50 to 83 percent of
total costs from general tax revenues - CORRECT ANSWER -
While the federal government sets broad eligibility and service guidelines for Medicaid, states
exercise considerable control over specific enrollment thresholds and the generosity of benefits. -
CORRECT ANSWER -
CORRECT Answers
biggest payment source for healthcare - CORRECT ANSWER - 1. public health insurance
(39%) Medicare (20%) Medicaid (15%)
2. private health insurance (33%)
3. Out of pocket (12%)
how much does US spend on healthcare every year? - CORRECT ANSWER - US spends
roughly $3.1 trillion a year on health care
investment - CORRECT ANSWER - this category consists of research, structures, and
equipment
Other Payers - CORRECT ANSWER - this category comprises worksite health care,
workers' compensation, vocational rehabilitation, Indian Health Services, and maternal and child
health.
Other Public Health Insurance - CORRECT ANSWER - this category includes CHIP
(Children's Health Insurance Program) and Department of Defense and Veterans Affairs
Out-of-Pocket - CORRECT ANSWER - this category is made up of consumer spending
on deductibles, copays, co-insurance as well as goods and care not covered by insurance. It does
not include insurance premiums.
how much of GDP is healthcare - CORRECT ANSWER - 17.5%
health spending as a share of the GDP has increased from 5.4% in 1963 to its projected growth
of 19.3% in 2023 - CORRECT ANSWER -
,the average person spends $7,097 on health care each year - CORRECT ANSWER -
Females in the US spend more than males ($7,860/year vs. $6,313/year) - CORRECT
ANSWER -
the elderly pay the most for health care ($34,783/year for the 85+ cohort). - CORRECT
ANSWER -
Personal Health Care makes up 85% of Health Care Spending
Spending Category by Percentage
Hospital Care32%
Physician and Clinical Services20%
Dental Services4%
Other Professional Services3%
Rx Drugs9%
Other Medical Products3%
Nursing Care Facilities5%
Home Health Care3%
Other Health Care5%
Other makes up 15% of Health Care Spending
Spending Category Percentage
Net Cost of Health Insurance6%
Investments6%
Public Health Activities3%
Government Administration1% - CORRECT ANSWER -
,Hospital care, physician and clinical services, and prescription drug were the three top spending
categories in 1960 and remain so today. - CORRECT ANSWER -
1960, 96% of prescription drugs were purchased via out-of-pocket compared to 2014 when 16%
of prescription drugs were purchased via out-of-pocket. - CORRECT ANSWER -
the percent of out-of-pocket spending (as a payer source) decreased from 1960 to 2014. -
CORRECT ANSWER -
four primary ways Americans obtain health insurance coverage:
Medicare
Medicaid
Employer-sponsored insurance
Individual plans - CORRECT ANSWER -
Medicare is a federal social insurance program providing coverage to those 65 years of age and
older who have worked and paid into the system. Additionally, Medicare provides coverage for
people under 65 years who have permanent disabilities, end-stage renal (kidney) disease and
amyotrophic lateral sclerosis (ALS). - CORRECT ANSWER -
According to the US Department of Health and Human Services, 53.8 million people have
Medicare. - CORRECT ANSWER -
Part A: covers hospital care, skilled nursing care, and home health services. It is paid for by
payroll taxes. - CORRECT ANSWER -
Part B: covers physician services and durable medical equipment (e.g., wheelchairs, walkers,
blood sugar monitors, and oxygen equipment). It is paid for by general tax revenues (73%) and
monthly beneficiary premiums (25%). - CORRECT ANSWER -
, Part C: is also known as Medicare Advantage Plans or Medicare managed care programs offered
through private insurance companies that are approved by Medicare. Roughly one-quarter of
Medicare beneficiaries are enrolled in such plans. These plans cover all services provided
through Parts A and B and often times offer additional services and benefits. Medicare pays a
fixed amount to the insurance company for each beneficiary enrolled in its plan. Beneficiaries
also may be required to pay a monthly premium depending on the plan they select. - CORRECT
ANSWER -
Part D: covers prescription drugs. It is paid for by general tax revenues (73%), monthly
beneficiary premiums (14%) and state payments (13%). - CORRECT ANSWER -
nearly 90% of Medicare beneficiaries have some form of supplemental insurance - CORRECT
ANSWER -
33% of Medicare beneficiaries are enrolled in Medicare Advantage Plans - CORRECT
ANSWER -
25% of Medicare enrollees receive health insurance coverage through their employer or former
employer via employer-sponsored retiree coverage - CORRECT ANSWER -
17% of Medicare enrollees have Medigap plans designed to help offset deductibles, coinsurance,
and copays (in exchange for a monthly premium) - CORRECT ANSWER -
15% of Medicare enrollees are eligible for Medicaid (known as dual-eligible beneficiaries) -
CORRECT ANSWER -
Medicaid is a joint federal-state program with the federal government paying 50 to 83 percent of
total costs from general tax revenues - CORRECT ANSWER -
While the federal government sets broad eligibility and service guidelines for Medicaid, states
exercise considerable control over specific enrollment thresholds and the generosity of benefits. -
CORRECT ANSWER -
