MHA 707 Exam C Questions with Complete Solutions Graded A+

Moral Hazard - Answer: When the act of insuring an event increases the likelihood that the event will happen behaving different when you know someone is taking the risk (induced demand) Adverse Selection - Answer: the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction the sicker people likely want more insurance, compared to those who are healthy Pooling of Risk - Answer: Allows individuals to share risk, i.e., insurance companies National Health Expenditure Accounts (NHEA) - Answer: Provides official estimates of health care spending in the US. It measures health care consumption and health care investment. NHEA Benefits - Answer: Comprehensive: includes all major components of health care system in unified, mutually exclusive, and exhaustive structure Multidimensional: encompasses expenditures as well as payers Consistent: applies a common set of definitions that permits longitudinal comparisons Published by DHHS Accounts in the NHEA - Answer: National Health Expenditures: NHE Health Consumption Expenditures: HCE Personal Health Care: PHC National Health Expenditures: NHE - Answer: all health care consumption and investments in medical structures and equipment and noncommercial health services and biomedical research NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment) 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 Personal Health Care: PHC - Answer: subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent health problems of a specific person How much NHE spent on Health Care? - Answer: $3.49 Trillion Per capita amount: over $10k % of GDP: 18% Buying Power: $1,200 when adjusted by CPI Largest contributors to the Personal Health Care (PHC) - Answer: hospitalization, physician services, Rx, other health care goods and services