MHA 710 Frequently Tested Exam Questions With
Verified Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is capitation? - ANSWER Flat payment per consumer
2. What is a high deductible plan? - ANSWER Plan that has a
deductible of at least $1,000 and may be combined with a health
savings account.
3. What is a health savings account? - ANSWER An account that
employees and employers can contribute to and employees can use
to pay medical bills. Employees' contributions and payments are not
taxable.
4. Which types of employer-sponsored insurance plans have the largest
shares of the market? See exhibit 3.3. - ANSWER PPO.
5. FFS plans have all but disappeared, and the market share of PPO
plans has fallen from 57 percent to 48 percent. HMO plans (which
include POS plans in exhibit 3.3) have fallen from 34 percent of the
employer-based market to 24 percent. HD plans have risen from 5
percent of the market in 2007 to 28 percent in 2017. The patterns in
other sectors differ from those in the employer-sponsored market.
More than 60 percent of Medicare Advantage beneficiaries are in
, HMOs (Kaiser Family Foundation 2017b). Likewise, more than 70
percent of Medicaid beneficiaries are in HMOs, and about half of
those buying ACA plans are as well.
6. What is the difference between a subjective probability and an
objective probability? Are they equally "reliable"? - ANSWER
Objective probability is based on factual frequencies while subjective
probability is based on judgement. Subjective probability is used
more but is not as reliable as objective.
7. What is the formula for calculating an expected value? - ANSWER
multiply the value of each outcome by its probability of occurrence
and then add the resulting products.
8. What is the formula for variance in a problem set? - ANSWER
multiply the squared difference between the value of each outcome
and the expected value by its probability of occurrence and then add
the resulting products.
9. Why are both the expected value and variance (and/or standard
deviation) required for evaluating the riskiness of a scenario? -
ANSWER Range will tell you the best and worst likely case
scenario while the variance will tell you the size of the risk compared
to other outcomes.
10.What is sensitivity analysis and why is it important? - ANSWER A
sensitivity analysis substitutes different, but plausible, values for the
values in a decision tree. Gauging the effects of minor data changes
, on the results is always helpful. The data are never perfect, and using
them as if they were does not make sense.
11.You must understand how the decision tree is constructed and how
the expected profit is calculated. - ANSWER Decision tree is
constructed through showing the probability of a profit for various
outcomes. The expected value is made my summing all the outcomes
after multiplying the profit by the probability.
12.What is the difference between being risk-averse, risk-neutral, and
risk-loving? - ANSWER Risk loving is the same as risk seeking and
they like taking chances even with low expected payoffs as
sometimes it is the only way to survive. Risk neutral person does not
care at all about variability and just wants the high expected value
outcome. A risk-averse person avoids variability and will sometimes
choose strategies with smaller expected values to avoid risk aka
insurance premiums.
13.Chapter 3 Key Concepts - ANSWER • Insurance pools the risks of
high costs.
• Moral hazard and adverse selection complicate risk pooling.
• About 91 percent of the US population has medical insurance.
• Consumers pay for most medical care indirectly, through taxes
and insurance premiums.
Verified Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is capitation? - ANSWER Flat payment per consumer
2. What is a high deductible plan? - ANSWER Plan that has a
deductible of at least $1,000 and may be combined with a health
savings account.
3. What is a health savings account? - ANSWER An account that
employees and employers can contribute to and employees can use
to pay medical bills. Employees' contributions and payments are not
taxable.
4. Which types of employer-sponsored insurance plans have the largest
shares of the market? See exhibit 3.3. - ANSWER PPO.
5. FFS plans have all but disappeared, and the market share of PPO
plans has fallen from 57 percent to 48 percent. HMO plans (which
include POS plans in exhibit 3.3) have fallen from 34 percent of the
employer-based market to 24 percent. HD plans have risen from 5
percent of the market in 2007 to 28 percent in 2017. The patterns in
other sectors differ from those in the employer-sponsored market.
More than 60 percent of Medicare Advantage beneficiaries are in
, HMOs (Kaiser Family Foundation 2017b). Likewise, more than 70
percent of Medicaid beneficiaries are in HMOs, and about half of
those buying ACA plans are as well.
6. What is the difference between a subjective probability and an
objective probability? Are they equally "reliable"? - ANSWER
Objective probability is based on factual frequencies while subjective
probability is based on judgement. Subjective probability is used
more but is not as reliable as objective.
7. What is the formula for calculating an expected value? - ANSWER
multiply the value of each outcome by its probability of occurrence
and then add the resulting products.
8. What is the formula for variance in a problem set? - ANSWER
multiply the squared difference between the value of each outcome
and the expected value by its probability of occurrence and then add
the resulting products.
9. Why are both the expected value and variance (and/or standard
deviation) required for evaluating the riskiness of a scenario? -
ANSWER Range will tell you the best and worst likely case
scenario while the variance will tell you the size of the risk compared
to other outcomes.
10.What is sensitivity analysis and why is it important? - ANSWER A
sensitivity analysis substitutes different, but plausible, values for the
values in a decision tree. Gauging the effects of minor data changes
, on the results is always helpful. The data are never perfect, and using
them as if they were does not make sense.
11.You must understand how the decision tree is constructed and how
the expected profit is calculated. - ANSWER Decision tree is
constructed through showing the probability of a profit for various
outcomes. The expected value is made my summing all the outcomes
after multiplying the profit by the probability.
12.What is the difference between being risk-averse, risk-neutral, and
risk-loving? - ANSWER Risk loving is the same as risk seeking and
they like taking chances even with low expected payoffs as
sometimes it is the only way to survive. Risk neutral person does not
care at all about variability and just wants the high expected value
outcome. A risk-averse person avoids variability and will sometimes
choose strategies with smaller expected values to avoid risk aka
insurance premiums.
13.Chapter 3 Key Concepts - ANSWER • Insurance pools the risks of
high costs.
• Moral hazard and adverse selection complicate risk pooling.
• About 91 percent of the US population has medical insurance.
• Consumers pay for most medical care indirectly, through taxes
and insurance premiums.
