MHA 707 Exam Study Guide questions
with rationale answers
Moral Hazard - ANS When the act of insuring an event increases the likelihood that
the event will happen
behaving differently when you know someone is taking the risk (induced demand)
Adverse Selection - ANS 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 - ANS Allows individuals to share risk, i.e., insurance companies
National Health Expenditure Accounts (NHEA) - ANS Provides official estimates of
health care spending in the US. It measures health care consumption and health care
investment.
NHEA Benefits - ANS 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 - ANS National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
National Health Expenditures: NHE - ANS 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 - ANS 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 - ANS 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? - ANS $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) - ANS hospitalization,
physician services, Rx, other health care goods and services
What accounted for the largest share of NHE? - ANS Hospital Care: 33% of
spending
Professional Services: 20% doctors NHE
Retail Rx: 10.5%
Three Categories of PHC increased as a share of NHE - ANS Health Residential
and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
Chronic Disease and Mental Health Diseases in NHE (percentage) - ANS 90%
Among the top 5% of users account for about half of the spending
Medical Conditions and Parentages on Americans - ANS 90% of Americans have 1
risk factor, 52% have 2 or more highest proportion in impoverished and racial/ethnic
minorities
Americans Stat on Health Ins Coverage - ANS 92% of the US population have
some sort of ins (8% or 26.4 M uninsured)
Cost/Cost Plus - ANS how hospitals/providers describe payments received for
services they have already provided. The organization tracks all the costs associated
with rationale answers
Moral Hazard - ANS When the act of insuring an event increases the likelihood that
the event will happen
behaving differently when you know someone is taking the risk (induced demand)
Adverse Selection - ANS 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 - ANS Allows individuals to share risk, i.e., insurance companies
National Health Expenditure Accounts (NHEA) - ANS Provides official estimates of
health care spending in the US. It measures health care consumption and health care
investment.
NHEA Benefits - ANS 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 - ANS National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
National Health Expenditures: NHE - ANS 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 - ANS 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 - ANS 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? - ANS $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) - ANS hospitalization,
physician services, Rx, other health care goods and services
What accounted for the largest share of NHE? - ANS Hospital Care: 33% of
spending
Professional Services: 20% doctors NHE
Retail Rx: 10.5%
Three Categories of PHC increased as a share of NHE - ANS Health Residential
and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
Chronic Disease and Mental Health Diseases in NHE (percentage) - ANS 90%
Among the top 5% of users account for about half of the spending
Medical Conditions and Parentages on Americans - ANS 90% of Americans have 1
risk factor, 52% have 2 or more highest proportion in impoverished and racial/ethnic
minorities
Americans Stat on Health Ins Coverage - ANS 92% of the US population have
some sort of ins (8% or 26.4 M uninsured)
Cost/Cost Plus - ANS how hospitals/providers describe payments received for
services they have already provided. The organization tracks all the costs associated
