HCMG 101 Exam 1(100% Correct)
What does the average person spend more on- food, shelter, or healthcare? -
ANSWERSHousing (18%), Medical Care (17%), Food/ Cars and furniture (14%),
Clothing and shoes (3%)
What are national health expenditures - ANSWERSthe total amount of al spending in
the U.S. on Healthcare
What was the total NHE in 2014? - ANSWERS3 trillion
What was the total NHE in 2015? - ANSWERS3.2 trillion
Based on the NHE from 2015, if the health sector were its own country, how would its
economy rank compared to the rest of the world - ANSWERS5th
Based on the NHE from 2015, what percent is it relative to the national income -
ANSWERS17.8%
What is the national income also known as? - ANSWERSGDP
Based on the NHE from 2015, what does this value equate to if divided between each
person in the United States? - ANSWERS9990/person
Why is health care spending so large? - ANSWERS1)Not on us: Spending higher when
older and 80/20 (80% of expenditure, 20% of population) 2) Expenditure of medical care
paid for by someone else
How does spending vary by age? - ANSWERSAs populations grow older, they tend to
spend more on health care
What gender gap exists in health spending? - ANSWERSIn general, there is no gender
gap in health spending between men and women. However, during the periods of 19-34
and 35-44, spending for females is much higher than spending for males. This is
because women during child birth periods have a better practice of going to the doctor
in order to ensure that they are healthy and doing well.
How does the amount of health spending compare between people who are 55 and
older and those ho are under 19 - ANSWERS11% of spending by 25% of the population
for 19 and younger, while people who are 55 and older account for about half of total
spending
What do discussions in health spending often focus on in terms of population? -
ANSWERSAverages
,How does spending vary across populations? How could you describe distribution?
What does this say about the possibility/focus of reform? - ANSWERSConsiderably-
80/20 rule- 80% of health spending occurs in the top 20% of health spenders; skewed;
Can really reform while only working with a small amount of the population
Even though there is so much health spending, why is it not seen to be as
conspicuous? - ANSWERSMost spending for health care is not out of pocket (out of
pocket accounts for only 10% of costs, while the rest is covered by Medicaid (around
20), Medicare (Around 20), and Private insurance (around 32)
How does health spending growth compare to income growth historically? -
ANSWERSIt has exceeded income growth.
How has the gap between health spending growth and income growth changed
between the 70s and 80s, 80s and 90s, 90s and 2000s? - ANSWERSincreased,
decreased, increased
What span of time has there shown to not have been a gap between health spending
growth and income growth - ANSWERS2010-2013 (three year span)- 1st time in three
years span that there is no gap
How does income growth and health spending growth compare from 2013 to 2014 and
2014 to 2015? How about in recent quarters? What does this show? -
ANSWERSIncreases in both cases; health spending has picked up; something in 2014
created the difference once more between income growth and health spending growth:
(1) Medicaid expanded individual subsidies on the market and increase of market
exchanges came about- more participation in individual market exchanges helped
people who couldn't afford insurance to now have it, leading to more spending in
healthcare (2) (secondary reason)- blockbuster drug uptake led to increased prices
(possibly that health prices increased because of pharma stuff which leads to increased
medical costs)
As a percent of income, how has national health spending varied? - ANSWERSOver the
last 55 years, national health spending has grown from 5% to 17.9%
What is the percentage of income that national health spending is anticipated to be in
2025? - ANSWERS19.9%
Describe epinephrine in terms of amount it requires to create it, its efficiency, impact on
life, cost. What is it's purpose? - ANSWERSNot expensive to produce; efficient; life-
saving; costs a lot of money (around 600 dollars); for allergic reactions
How has the price of an Epipen changed from 2007 to 2016? What instigated this
change in price in 2007? - ANSWERS400% increase; Mylan purchases Merck's generic
units, including Epipen
, How does the CEO of Mylan identify the problem with the expense of Epipens?
Describe the situation. - ANSWERSCEO identifies that an increased number of health
plans have a higher deductible meaning that the copay for such individuals is much
higher, since they choose not to get the health plan as a result; Deductible is 5000, so
need to pay a full 2400f or a year- easy to do because the consumers' lives depend on
this drug- easy for Mylan to raise prices because people just pay the copays but now
higher percentage of people have to pay the bill
Describe then access issue associated with insurance described with Epipens. -
ANSWERSPeople who can afford lower premium plans have higher deductibles-
disadvantaged, but they have the least amount of money to pay for higher deductibles
How can Mylan get away with increasing the price of Epipens - ANSWERSWe have a
related market- this means that certain rules (strict regulations for approval from the
FDA first before putting on the market) must be followed and this results in dramatic
price differences between America and other countries; lobbying and relationships
between healthcare industry and government are interdependent
In the US, who do we let set prices> How does this compare to other countries? -
ANSWERSDrugmakers; view markets of cures as uncompetitive and they regulate
prices
Who has little market power in the U.S.? How does this differ from other countries? -
ANSWERSInsurers- highly fragmented system; Other countries have single-payer-
large government entity
What provides stiff barriers to entry into the market? - ANSWERSFDA regulations
Describe the high deductible health plans issue associated with Mylan -
ANSWERSMore consumers face part of the rising costs (from 2007 to 2014, consumers
paying greater than 100 dollars jumped from 4% to 18%)
List the three issues associated with Mylan policies - ANSWERSHigh deductible health
plans, coupons, and generic versions of the EPipen
In response to great outrage in the previous year, what has Mylan done? What else has
entered the market? What question does this raise? - ANSWERSSelling generic version
for 300; alternative entered with 110 alternative; Whether one should buy the cheaper
version if you have a worse health care plan- should you trust that it is the same
product?
Describe why the competition in this market is not standard? - ANSWERSEven with
competitive products, not robust competitive market because insurance paying instead
of out of pocket costs
What does the average person spend more on- food, shelter, or healthcare? -
ANSWERSHousing (18%), Medical Care (17%), Food/ Cars and furniture (14%),
Clothing and shoes (3%)
What are national health expenditures - ANSWERSthe total amount of al spending in
the U.S. on Healthcare
What was the total NHE in 2014? - ANSWERS3 trillion
What was the total NHE in 2015? - ANSWERS3.2 trillion
Based on the NHE from 2015, if the health sector were its own country, how would its
economy rank compared to the rest of the world - ANSWERS5th
Based on the NHE from 2015, what percent is it relative to the national income -
ANSWERS17.8%
What is the national income also known as? - ANSWERSGDP
Based on the NHE from 2015, what does this value equate to if divided between each
person in the United States? - ANSWERS9990/person
Why is health care spending so large? - ANSWERS1)Not on us: Spending higher when
older and 80/20 (80% of expenditure, 20% of population) 2) Expenditure of medical care
paid for by someone else
How does spending vary by age? - ANSWERSAs populations grow older, they tend to
spend more on health care
What gender gap exists in health spending? - ANSWERSIn general, there is no gender
gap in health spending between men and women. However, during the periods of 19-34
and 35-44, spending for females is much higher than spending for males. This is
because women during child birth periods have a better practice of going to the doctor
in order to ensure that they are healthy and doing well.
How does the amount of health spending compare between people who are 55 and
older and those ho are under 19 - ANSWERS11% of spending by 25% of the population
for 19 and younger, while people who are 55 and older account for about half of total
spending
What do discussions in health spending often focus on in terms of population? -
ANSWERSAverages
,How does spending vary across populations? How could you describe distribution?
What does this say about the possibility/focus of reform? - ANSWERSConsiderably-
80/20 rule- 80% of health spending occurs in the top 20% of health spenders; skewed;
Can really reform while only working with a small amount of the population
Even though there is so much health spending, why is it not seen to be as
conspicuous? - ANSWERSMost spending for health care is not out of pocket (out of
pocket accounts for only 10% of costs, while the rest is covered by Medicaid (around
20), Medicare (Around 20), and Private insurance (around 32)
How does health spending growth compare to income growth historically? -
ANSWERSIt has exceeded income growth.
How has the gap between health spending growth and income growth changed
between the 70s and 80s, 80s and 90s, 90s and 2000s? - ANSWERSincreased,
decreased, increased
What span of time has there shown to not have been a gap between health spending
growth and income growth - ANSWERS2010-2013 (three year span)- 1st time in three
years span that there is no gap
How does income growth and health spending growth compare from 2013 to 2014 and
2014 to 2015? How about in recent quarters? What does this show? -
ANSWERSIncreases in both cases; health spending has picked up; something in 2014
created the difference once more between income growth and health spending growth:
(1) Medicaid expanded individual subsidies on the market and increase of market
exchanges came about- more participation in individual market exchanges helped
people who couldn't afford insurance to now have it, leading to more spending in
healthcare (2) (secondary reason)- blockbuster drug uptake led to increased prices
(possibly that health prices increased because of pharma stuff which leads to increased
medical costs)
As a percent of income, how has national health spending varied? - ANSWERSOver the
last 55 years, national health spending has grown from 5% to 17.9%
What is the percentage of income that national health spending is anticipated to be in
2025? - ANSWERS19.9%
Describe epinephrine in terms of amount it requires to create it, its efficiency, impact on
life, cost. What is it's purpose? - ANSWERSNot expensive to produce; efficient; life-
saving; costs a lot of money (around 600 dollars); for allergic reactions
How has the price of an Epipen changed from 2007 to 2016? What instigated this
change in price in 2007? - ANSWERS400% increase; Mylan purchases Merck's generic
units, including Epipen
, How does the CEO of Mylan identify the problem with the expense of Epipens?
Describe the situation. - ANSWERSCEO identifies that an increased number of health
plans have a higher deductible meaning that the copay for such individuals is much
higher, since they choose not to get the health plan as a result; Deductible is 5000, so
need to pay a full 2400f or a year- easy to do because the consumers' lives depend on
this drug- easy for Mylan to raise prices because people just pay the copays but now
higher percentage of people have to pay the bill
Describe then access issue associated with insurance described with Epipens. -
ANSWERSPeople who can afford lower premium plans have higher deductibles-
disadvantaged, but they have the least amount of money to pay for higher deductibles
How can Mylan get away with increasing the price of Epipens - ANSWERSWe have a
related market- this means that certain rules (strict regulations for approval from the
FDA first before putting on the market) must be followed and this results in dramatic
price differences between America and other countries; lobbying and relationships
between healthcare industry and government are interdependent
In the US, who do we let set prices> How does this compare to other countries? -
ANSWERSDrugmakers; view markets of cures as uncompetitive and they regulate
prices
Who has little market power in the U.S.? How does this differ from other countries? -
ANSWERSInsurers- highly fragmented system; Other countries have single-payer-
large government entity
What provides stiff barriers to entry into the market? - ANSWERSFDA regulations
Describe the high deductible health plans issue associated with Mylan -
ANSWERSMore consumers face part of the rising costs (from 2007 to 2014, consumers
paying greater than 100 dollars jumped from 4% to 18%)
List the three issues associated with Mylan policies - ANSWERSHigh deductible health
plans, coupons, and generic versions of the EPipen
In response to great outrage in the previous year, what has Mylan done? What else has
entered the market? What question does this raise? - ANSWERSSelling generic version
for 300; alternative entered with 110 alternative; Whether one should buy the cheaper
version if you have a worse health care plan- should you trust that it is the same
product?
Describe why the competition in this market is not standard? - ANSWERSEven with
competitive products, not robust competitive market because insurance paying instead
of out of pocket costs
