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TEST BANK for Health Policy Issues: An Economic Perspective 7th Edition by Paul Feldstein. ISBN 9781640550100, ISBN- _TABLE OF CONTENTS_ Chapter 1. The Rise of Medical Expenditures , Chapter 2. How Much Should We Spend on Medical Care?, Chapter 3. Do More Medical Expenditures Produce Better Health?...

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,Chapter 1

1. What does Medicare Part C do?

a. Provides the aged with home health care
b. Provides the aged with prescription drugs
c. Enables low-income aged to participate in Medicaid
*d. Provides a voluntary managed care option for the aged


2. How is Medicaid administered?

*a. By each state
b. By the federal government
c. Jointly by each state and the federal government
d. By insurers under contract with the federal government



3. How is Medicaid financed?

a. It is financed entirely by the federal government.
b. It is financed entirely by the state.
c. States receive the same percentage of federal support.
*d. States with lower per capita incomes receive a greaterpercentage of federal
support.


4. The Affordable Care Act

a. did not make any changes to the Medicaid program.
*b. increased Medicaid eligibility.
c. reduced funding for Medicaid.
d. required adult Medicaid recipients to buy their insurance onhealth insurance
exchanges.


5. Which of the following statements describes how the financing of UShealthcare
has changed over time?

a. The federal government now finances 76 percent of totalhealthcare
expenditures.
*b. Out-of-pocket payments represent less than 15 percent oftotal healthcare
expenditures.
c. Expenditures for prescription and over-the-counter drugs areas great as
hospital expenditures.
d. None of the above


6. In the past ten years, medical expenditures have risen more slowlyprimarily
because of

a. the introduction of the Affordable Care Act.
b. stringent Medicare price controls on hospitals and physicians.
c. state regulation of health insurance premiums.

, *d. a severe recession, greater number of uninsured people, andfewer employees
with employer-paid health insurance.


7. In coming years, medical expenditures are expected to rise at afaster rate
because of

a. the growing economy.
b. increased demand as a result of the Affordable Care Act.
c. the development of new technology and expensive specialtydrugs.
*d. All of the above


8. The growth in private health insurance was stimulated by

a. federal and state subsidies.
*b. higher per capita income and tax-exempt employer-paid healthinsurance.
c. the growth of private managed care organizations.
d. federal and state regulatory policies.


9. An effect of government regulating physician-fee increases to reducerising Medicare
physician expenditures was that

a. physician participation rates in Medicare declined.
b. physician participation rates in Medicare increased.
c. access to care for Medicare patients declined.
*d. A and C


10. Managed care relies on which of the following to reduce enrollees’
premiums?

a. Dramatically increasing enrollees’ out-of-pocket expenses
*b. Having providers compete to join limited provider networks
c. Increasing specialists’ fees to provide them with an incentive
to become more productive
d. B and C

, Chapter 2

1. Why is there a concern that this country is spending too much onmedical care?

a. Insurers’ administrative costs are too high.
b. Hospitals and physician prices are much higher than in othercountries.
*c. The country is not receiving sufficient value for what itspends on
healthcare.
d. The healthcare system is too regulated.


2. Consumer sovereignty is based on the concept that

*a. consumers know best what they want.
b. consumer out-of-pocket payments should be higher so thatconsumers
become more price sensitive.
c. consumers should have greater representation on hospital andinsurer
boards of directors.
d. consumers should have more comprehensive insurance so thatthey have
more control over their choice of provider.


3. The relationship between the benefits of an additional visit and thenumber of visits is

a. constant.
b. increasing.
*c. decreasing.
d. A and B


4. What is the “right” or “optimal” amount of spending for a person?

a. When the additional medical benefit provided to the patient isworthwhile, as
determined by a health professional
*b. When the benefit of the last visit to the physician is equalto the cost to the
consumer for that visit
c. When the additional medical benefit of that visit isworthwhile, as
determined by the patient
d. When the benefit of the last visit to the physician isconsidered appropriate
according to clinical guidelines


5. Economic waste occurs when

*a. the expected benefits of an intervention are less than theexpected costs.
b. the expected benefits of an intervention have very littleperceived value
to the health professional.
c. the expected benefits of an intervention have very littleperceived value
to the patient.

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