MHA 707 Exam 3
Questions and
Complete Solutions
Graded A+
Denning Muriithi [Date] [Course title]
, MHA 707 Exam 3
1. moral hazard Answer: behaving differently when you know
someone else is taking the risk (Induced demand)
2. adverse selection Answer: the sicker people likely want more
insurance (the healthier, less)
3. pooling of risk Answer: sharing risk proportionately among many is a
basic insurance concept
4. Non marketability of risks Answer: inherent in medicine and
medical practice Health insurance
5. Asymmetries of information Healthcare Answer: Physician vs. patient
(vs. 3rd Party payer)
6. Uncertainty and Health Care Answer: financing health care in the
United States is a complex matter
• Workarounds
• Redundancies
• Contradictions
7. single national payment system Answer: because the United States lacks
a , for healthcare, how the money is paid
to the providers of health care has become very complicated.
• Situation that to this point, health care reform policies have not
reduced
8. National Health Expenditure Accounts (NHEA) Answer: •Provide official
estimates of health care spending in the United States
• Measures health care consumption and health care investment
9. Benefits of NHEA Answer: •Comprehensive—includes all major
components of health care system in a unified, mutually exclusive,
and exhaustive structure
10.Health Care Financing Answer: •Multidimensional—encompasses
expenditures as well as payers
• Consistent—applies a common set of definitions that permits
longitudinal compar- isons
Published by the U.S. Department of Health and Human Services (DHHS)
11.NHEA produce Answer: National Health
Expenditures (NHE) Health Consumption
Expenditures (HCE)
Personal Health Care (PHC)
NHE - HCE = Amount of investment in the Medical Sector of economy
12.National Health Expenditures (NHE) Answer: •All health care
consumption and invest- ments in medical structures and equipment
and noncommercial health services and biomedical research
, MHA 707 Exam 3
13.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
, MHA 707 Exam 3
14.Personal Health Care (PHC) Answer: •A subset of HCE
• Includes all medical goods and services that are used to
diagnose, treat, and prevent health problems in a specific person
15.Health care spending has Answer: increased in the United States
every year since 1960 except for slight dips in 2013 and 2017.
• Absolute amount
• Per capita amount
• Percentage of Gross Domestic Product (GDP)
16.In 2017, the National Health Expenditures (NHE) were Answer: •$3.49
trillion
• 17.9% of GDP
• $10,739 per capita
17.per capita spending on health care Answer: not adjusted for inflation
—was $146 in 1960, compared to $10,739 in 2017
18.Buying power Answer: of $146 in 1960 equates to about $1,207 when
adjusted by the Consumer Price Index (CPI)
19.direct and indirect health care spending Answer: were it to be allocated
evenly across the population—would be larger than any other
household expense
20.In 2017, median household income Answer: was $57,652, and median
rent or owner costs for housing was $11,784.
21. $29,000
50% Answer: •With per household NHE at around , health care
expenditures would be more than of the median household
income.
22.Between 1960 and 1990 Answer: the average annual percent changes
were double-dig- it increases except in 1985-1987
23.Beginning in 1991, Answer: the annual rate of increase in health care
spending began to decline to single digits and continued in single digits
through 2017.
24.From 2008 to 2017 Answer: the annual rate of increase each year was
below 6%.
25.In 2017, spending grew Answer: only 3.9% from the previous year.
26.Vast majority of expenditures Answer: are in Health Consumption
Expenditures (HCE).
27.Most of HCE Answer: are for Personal Health Care (PHC).
• Hospitalization
• Physician services
• Prescription drugs
Questions and
Complete Solutions
Graded A+
Denning Muriithi [Date] [Course title]
, MHA 707 Exam 3
1. moral hazard Answer: behaving differently when you know
someone else is taking the risk (Induced demand)
2. adverse selection Answer: the sicker people likely want more
insurance (the healthier, less)
3. pooling of risk Answer: sharing risk proportionately among many is a
basic insurance concept
4. Non marketability of risks Answer: inherent in medicine and
medical practice Health insurance
5. Asymmetries of information Healthcare Answer: Physician vs. patient
(vs. 3rd Party payer)
6. Uncertainty and Health Care Answer: financing health care in the
United States is a complex matter
• Workarounds
• Redundancies
• Contradictions
7. single national payment system Answer: because the United States lacks
a , for healthcare, how the money is paid
to the providers of health care has become very complicated.
• Situation that to this point, health care reform policies have not
reduced
8. National Health Expenditure Accounts (NHEA) Answer: •Provide official
estimates of health care spending in the United States
• Measures health care consumption and health care investment
9. Benefits of NHEA Answer: •Comprehensive—includes all major
components of health care system in a unified, mutually exclusive,
and exhaustive structure
10.Health Care Financing Answer: •Multidimensional—encompasses
expenditures as well as payers
• Consistent—applies a common set of definitions that permits
longitudinal compar- isons
Published by the U.S. Department of Health and Human Services (DHHS)
11.NHEA produce Answer: National Health
Expenditures (NHE) Health Consumption
Expenditures (HCE)
Personal Health Care (PHC)
NHE - HCE = Amount of investment in the Medical Sector of economy
12.National Health Expenditures (NHE) Answer: •All health care
consumption and invest- ments in medical structures and equipment
and noncommercial health services and biomedical research
, MHA 707 Exam 3
13.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
, MHA 707 Exam 3
14.Personal Health Care (PHC) Answer: •A subset of HCE
• Includes all medical goods and services that are used to
diagnose, treat, and prevent health problems in a specific person
15.Health care spending has Answer: increased in the United States
every year since 1960 except for slight dips in 2013 and 2017.
• Absolute amount
• Per capita amount
• Percentage of Gross Domestic Product (GDP)
16.In 2017, the National Health Expenditures (NHE) were Answer: •$3.49
trillion
• 17.9% of GDP
• $10,739 per capita
17.per capita spending on health care Answer: not adjusted for inflation
—was $146 in 1960, compared to $10,739 in 2017
18.Buying power Answer: of $146 in 1960 equates to about $1,207 when
adjusted by the Consumer Price Index (CPI)
19.direct and indirect health care spending Answer: were it to be allocated
evenly across the population—would be larger than any other
household expense
20.In 2017, median household income Answer: was $57,652, and median
rent or owner costs for housing was $11,784.
21. $29,000
50% Answer: •With per household NHE at around , health care
expenditures would be more than of the median household
income.
22.Between 1960 and 1990 Answer: the average annual percent changes
were double-dig- it increases except in 1985-1987
23.Beginning in 1991, Answer: the annual rate of increase in health care
spending began to decline to single digits and continued in single digits
through 2017.
24.From 2008 to 2017 Answer: the annual rate of increase each year was
below 6%.
25.In 2017, spending grew Answer: only 3.9% from the previous year.
26.Vast majority of expenditures Answer: are in Health Consumption
Expenditures (HCE).
27.Most of HCE Answer: are for Personal Health Care (PHC).
• Hospitalization
• Physician services
• Prescription drugs
