Exam 1 Prep: MHA 710 / MHA710 (Latest 2025 / 2026) Healthcare Economics | Questions and Verified Answers | 100% Correct | Grade A - LSU
Question:
Medicare
Answer:
An insurance program for the elderly and disabled, run by the Centers for Medicare & Medicaid Services.
Question:
Medica...
Question:
Medicare
Answer:
An insurance program for the elderly and disabled, run by the Centers for
Medicare & Medicaid Services.
Question:
Medicaid
Answer:
A collection of state-run insurance programs that meet standards set by the
Centers for Medicare & Medicaid Services and serve those with incomes low
enough to qualify for their state's program. Medicaid enrollment has
increased by more than 20 percent as a result of state expansions under the
Affordable Care Act.
,Question:
Moral Hazard
Answer:
The incentive to use additional care that having insurance creates.
Question:
Adverse Selection
Answer:
A situation that occurs when buyers have better information than sellers. For
example, high-risk consumers are willing to pay more for insurance than low-
risk consumers are. (Organizations that have difficulty distinguishing high-
risk from low-risk consumers are unlikely to be profitable.)
Question:
Underwriting
Answer:
The process of assessing the risks associated with an insurance policy and
setting the premium accordingly.
,Question:
Medicare Part A
Answer:
Coverage for inpatient hospital, skilled nursing, hospice, and home health
services.
Question:
Medicare Part B
Answer:
Coverage for outpatient services and medical equipment.
Question:
Fee for Service (FFS)
Answer:
An insurance plan that pays providers on the basis of their charges for
services.
Question:
Managed Care
Answer:
A loosely defined term that includes all plans except open-ended fee-for-
service. It is sometimes used to describe the techniques insurance companies
use.
, Question:
PPO (Preferred Provider Organization)
Answer:
Plan that contracts with a network of providers. (Network providers may be
chosen for a variety of reasons, but a willingness to discount fees is usually
required.)
Question:
HMO (Health Maintenance Organization)
Answer:
Plan that provides comprehensive benefits to enrollees in exchange for a
premium. (Originally, HMOs were distinct from other insurance plans
because providers were not paid on a fee-for-service basis and because
enrollees faced no cost-sharing requirements.)
Question:
Point of Service (POS) Plan
Answer:
Plan that allows members to see any physician but increases cost sharing for
physicians outside the plan's network. (This arrangement has become so
common that POS plans may not be labeled as such.)
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