1. Who is the largest source of health care funding, paying over 50% of health care costs?

Group of answer choices

Philanthropists (charity)

Government programs (Medicaid, Medicare, VA)

Industrial clinics (GE, google, manufacturers)

Private health insurance companies

In 2012, health care spending accounted for what percent of the US gross domestic product (GDP)?

Group of answer choices

5%

18%

21%

12%

A provider has the opportunity to make $20k more per year, but would require them to take call and perform hospital rounding for 35% of the year. This provider already works 50 hrs a week and while they really want the money, they are not sure how many more hours of work they are able to fit in their week. In this scenario, time would be considered:

Group of answer choices

Willingness to pay

Opportunity cost

Trade

Scarcity cost

Jeremy is a 23-year-old snowboarder living in Utah that really enjoys delivering pizza on the weekends and hitting the slopes during the week. He is loving life but does not have health insurance. One day he hit a sweet jump and landed in a way that hurt is arm. For a few days the pain was bearable, until day 2 the swelling was too great, so he made an appointment with a clinician. His increasing pain level was convincing enough for him to pay cash for a medical appointment in hopes of receiving relief. The concept of paying for whatever it takes for pain relief would be considered:

Group of answer choices

Willingness to pay

Opportunity Cost

Scarcity Cost

Trade

Apply the example of a cancer treatment drug that promises to extend life by 2-3 more months than other drugs on the market. However, this particular drug cost 25k more than the other drugs available. The concept of increasing the cost by $25k for 3 more months of life is an example of:

Group of answer choices

Supply and Demand

Perceived benefit

Average value

Marginal Value

An example of marginal revenue would be:

Group of answer choices

A hospital reducing the cost of an angioplasty by half so that it breaks even in costs since this is a lifesaving procedure that no one would elect to have.

A hospital increasing the cost of mammograms so that they can earn more money for this procedure.

A hospital reducing the cost of a colonoscopy by 5% so that more people will elect to receive this procedure at this particular hospital.

A hospital keeping the cost the same for the hip replacement surgery but limiting the number of people that can receive this procedure.

Flag question: Question 7

Question 71.7pts

What makes the economics of health care different than the economics of other models such as entertainment, travel, business, etc?

Group of answer choices

Prices are set by third parties such as the government or insurance companies.

There is little individual variation in the type of treatment someone can receive for a specific ailment.

Determinants of health such as genetics, lifestyle, cannot be purchased on demand.

All of the above.

People do not seek it unless there is an immediate need for it or a moment of crises for it.

Flag question: Question 8

Question 81.7pts

Again, using the example of an expensive cancer drug that touts extending life expectancy by 3 months for $25k. Suppose you are a patient who elects to try this treatment. The concept of extending life by 3 months, despite the risk of what the quality of those 3 months may be and having no guarantee that you will actually be the patient who does in fact live those 3 extra months, is an example of:

Group of answer choices

Expected value

Marginal benefit

Marginal value

Opportunity cost

Flag question: Question 9

Question 91.7pts

Consider the scenario of a patient with heart failure. A patient can expect to live 5 years by taking a particular drug, or they could have surgery for their condition and live an additional 10 years if the surgery is successful. It may be an easy answer to receive the surgery, but it is actually only successful 35% of the time, and there is a 1% chance of immediate death. Calculating medical costs of treatment related to success of the treatment and expected value of treatment is an example of:

Group of answer choices

Treatment Continuation Modeling (TCM)

Life Adjustment Ratio Costs (LARC)

Cost-benefit analysis (CBA)

Quality of Life Adjusted Years (QALY)

Flag question: Question 10

Question 101.7pts

True or False: Insurance companies specialize in taking risks with who they decide to insure. They do not specialize in pricing risks.

Group of answer choices

False

True

Flag question: Question 11

Question 111.7pts

An insurance company that provides insurance coverage at a particular organization desires to have all employees sign up for their insurance plan, regardless of age, health condition, or future medical encounters/conditions, is an example of the concept of:

Group of answer choices

Risk pooling

Managed care

Loading Factors

Insurance premiums

Flag question: Question 12

Question 121.7pts

Employers pay about how much of the total wage and benefit compensation for health benefits, reducing the amount that can be paid out as wages?

Group of answer choices

8%

10%

15%

11%

Flag question: Question 13

Question 131.7pts

True or False: Insurance does not reduce the cost of medical care but redistributes costs so that different people end of paying the costs for medical care.

Group of answer choices

False

True

Flag question: Question 14

Question 141.7pts

When a hospital provides "free" care to someone who does not have health insurance, how is this cost compensated for?

Group of answer choices

Individuals take home lower wages

Insurance premiums rise

More dollars are collected through gas, property or income taxes

All of the above

Flag question: Question 15

Question 151.7pts

A person with insurance is more likely to go to the doctor for a medical concern than someone who is not insured. This concept is an example of:

Group of answer choices

Welfare loss

Moral hazard

Profit loss

Welfare Triangle

Flag question: Question 16

Question 161.7pts

The first country to offer a national health insurance program was:

Group of answer choices

France

Sweden

Germany

England

Flag question: Question 17

Question 171.7pts

True or False: The first type of collective health insurance coverage existed with Baylor Hospital and covered only teachers who received care at that hospital so long as they paid a premium of $0.50 per month.

Group of answer choices

False

True

Flag question: Question 18

Question 181.7pts

Congress created this type of insurance in 1965 to provide coverage for people older than 65, or for individuals with some types of disabilities:

Group of answer choices

Medicaid

Medicare

Veterans Health Care

TriCare

Flag question: Question 19

Question 191.7pts

Medicare offers twelve (12) standard supplement plans. Part A and part B include basic benefits. Parts C-J expand to include ____ that part A and B do not include.

Group of answer choices

Skilled nursing coinsurance

All of the above

Part A deductible

Foreign travel emergency

Flag question: Question 20

Question 201.7pts

True or False: The Children's Health Insurance Program (CHIP) was enacted in 1997 and is meant to cover children younger than 18 years who were not insured. This program is federally run and has left no child under the age of 18 uninsured.

Group of answer choices

True

False

Flag question: Question 21

Question 211.7pts

True or False: The study conducted by Helen Levy and Thomas DeLeire from the University of Chicago demonstrated that people on the bottom quartile of the income distribution who did not spend money on health insurance (did not elect for coverage) spent more money on expendable goods such as smart phones and restaurants.

Group of answer choices

True

False

Flag question: Question 22

Question 221.7pts

True or false: Insurers usually take 15-20% of the premiums they receive for administration, marketing, and profit, with the bulk of the funds used to pay medical expenses.

Group of answer choices

False

True

Flag question: Question 23

Question 231.7pts

Some of the interventions used to control cost and utilization of managed care contracts include:

Group of answer choices

All of the above.

Having a single doctor/clinic/group practice contract with the plan and is chosen by the patient to provide all their general medical care.

Requiring a doctor referral before a patient can obtain certain kinds of care.

Requiring referrals for any form of non-primary care.

Flag question: Question 24

Question 241.7pts

The biggest difference between an HMO and a PPO plan is:

Group of answer choices

HMO's are required for organizations with greater than 20 employees

Contracts with hospitals and physicians are developed with HMO plans only

PO plans allow patients to use outside physicians or hospitals by paying extra

Comprehensive care is provided for PPO plans only

Flag question: Question 25

Question 251.7pts

Under this type of clinician payment model, payment is based on points for types of services provided.

Group of answer choices

Relative value scale

Salary

Incentive pay

Fee for service

Flag question: Question 26

Question 261.7pts

Malpractice insurance fees cost an average of $23,500 annually but can be as high at $100,000 for specialties such as neurosurgeons. The rising cost of malpractice insurance premiums typically mean:

Group of answer choices

Physicians have become less careful when treating patients.

Rising costs are passed to patients and insurance companies

Clinicians take home less income

The legal system has made it harder to sue for malpractice claims

Flag question: Question 27

Question 271.7pts

The process of hospitals using revenues from one group of clients to subsidize another group is known in health care as:

Group of answer choices

Flex spending

Debt load

Budget requisition

Cost shifting

Flag question: Question 28

Question 281.7pts

Hospitals compete for patients by directly marketing benefits such as gourmet meals, technological advancements, pleasant rooms, or low wait times. While this has shown to attract patients, the following has shown to have little effect on attracting patients:

Group of answer choices

Appointment reminders

Advertising mortality rates or surgical qualifications

Free transportation to the clinic

Nice waiting rooms

Flag question: Question 29

Question 291.2pts

True or False: More than 95% of hospital revenues come from third parties, and more than half of those revenues come from the government through Medicare and Medicaid programs.

Group of answer choices

True

False

Flag question: Question 30

Question 301.2pts

True or False: According to research on profit versus non-profit hospitals, in general for-profit hospitals appear to be less likely to take on charitable care, research, teaching, and outreach, but tend to react more quickly to changes in reimbursement regulations. Most differences between for-profit and not-for profit hospitals are small and occur only occasionally.

Group of answer choices

True

False