8/8/25, 12:34 PM MHA 707 Exam C QUESTIONS AND VERIFIED ANSWERS 2025(GRADED A+) DETAILED ANSWERS!! Flashcards | Quizlet
MHA 707 Exam C QUESTIONS AND VERIFIED
ANSWERS 2025(GRADED A+) DETAILED
ANSWERS!!
When the act of insuring an event increases the
likelihood that the event will happen
Moral Hazard
behaving different when you know someone is taking
the risk (induced demand)
the situation in which one party to a transaction takes
advantage of knowing more than the other party to
the transaction
Adverse Selection
the sicker people likely want more insurance,
compared to those who are healthy
Allows individuals to share risk, i.e., insurance
Pooling of Risk
companies
National Health Provides official estimates of health care spending in
Expenditure Accounts the US. It measures health care consumption and
(NHEA) health care investment.
Cost/Cost Plus
Time and Materials
How Money is Paid to Fee for Service
Health Care Providers Fixed Price
Capitation
Value
… 1/14
, 8/8/25, 12:34 PM MHA 707 Exam C QUESTIONS AND VERIFIED ANSWERS 2025(GRADED A+) DETAILED ANSWERS!! Flashcards | Quizlet
A contract type where the seller charges the
buyer for the time and the materials for the
Time and Materials
work completed. T&M contracts should have a
not-to-exceed clause (NTE) to contain costs.
a system under which doctors and hospitals receive a
fee-for-service
payment for each service they provide
A price that stays the same; there is no debate over
Fixed Price
price
fixed payment per person to the health care provider
for an agreed-on array of services during a contract
Capitation period (per member/per month). Payment is the same
no matter the amount or type of service. May put the
physician at odds with the patient
payment model in which the provider is rewarded for
the value delivered. Value based systems are most
often used when the value is easy to measure and
Value indisputable. Value based purchasing, bundled
payments, and P4P are used by the CMS- top
performers make extra money that is taken from
poorer performers
-Private Health Insurance (individual/small business
and large)
-Government (Medicare/Medicaid, CHIP, other
government programs)
-Individual Patient (out of pocket)
-Provider (using discounts, write offs)
Major Health Care Payers
-Voluntary charitable organizations
in the US
Most obtain insurance via employer or spouses'
employer
Less than 2% of employees offered traditional or
indemnity health insurance plans
… 2/14
MHA 707 Exam C QUESTIONS AND VERIFIED
ANSWERS 2025(GRADED A+) DETAILED
ANSWERS!!
When the act of insuring an event increases the
likelihood that the event will happen
Moral Hazard
behaving different when you know someone is taking
the risk (induced demand)
the situation in which one party to a transaction takes
advantage of knowing more than the other party to
the transaction
Adverse Selection
the sicker people likely want more insurance,
compared to those who are healthy
Allows individuals to share risk, i.e., insurance
Pooling of Risk
companies
National Health Provides official estimates of health care spending in
Expenditure Accounts the US. It measures health care consumption and
(NHEA) health care investment.
Cost/Cost Plus
Time and Materials
How Money is Paid to Fee for Service
Health Care Providers Fixed Price
Capitation
Value
… 1/14
, 8/8/25, 12:34 PM MHA 707 Exam C QUESTIONS AND VERIFIED ANSWERS 2025(GRADED A+) DETAILED ANSWERS!! Flashcards | Quizlet
A contract type where the seller charges the
buyer for the time and the materials for the
Time and Materials
work completed. T&M contracts should have a
not-to-exceed clause (NTE) to contain costs.
a system under which doctors and hospitals receive a
fee-for-service
payment for each service they provide
A price that stays the same; there is no debate over
Fixed Price
price
fixed payment per person to the health care provider
for an agreed-on array of services during a contract
Capitation period (per member/per month). Payment is the same
no matter the amount or type of service. May put the
physician at odds with the patient
payment model in which the provider is rewarded for
the value delivered. Value based systems are most
often used when the value is easy to measure and
Value indisputable. Value based purchasing, bundled
payments, and P4P are used by the CMS- top
performers make extra money that is taken from
poorer performers
-Private Health Insurance (individual/small business
and large)
-Government (Medicare/Medicaid, CHIP, other
government programs)
-Individual Patient (out of pocket)
-Provider (using discounts, write offs)
Major Health Care Payers
-Voluntary charitable organizations
in the US
Most obtain insurance via employer or spouses'
employer
Less than 2% of employees offered traditional or
indemnity health insurance plans
… 2/14
