Health Systems, Policies, and Economics – Practice Questions

Question 1

A 45 year-old woman who is currently unemployed qualifies for a medical assistance program that is paid for by federal, state, and local taxes. She uses this coverage to get treatment for an acute upper respiratory infection that requires hospitalization. What program is this woman using?

A. Blue Cross / Blue Shield
B. Agency for Healthcare Research and Quality
C. Medicaid
D. Medicare
E. Private insurance
F. Employer provided commercial insurance

Answer 1

Correct answer is C. Medicaid is a federal and state assistance program that is paid for by federal, state, and local taxes to benefit people with low incomes. Participants pay very little or no part of the coverage.

Question 2

In the United States, what medical conditions consistently generate the most expenditures each year?

A. Neoplasms
B. Disease that affect the nervous system
C. Respiratory conditions
D. Musculoskeletal disorders 
E. Cardiovascular conditions 
F. Endocrine disorders

Answer 2

Correct answer is E. The greatest expenditures (in order) are: Circulatory system (hypertension, heart attack, etc.), Musculoskeletal (arthritis, back pain, etc.), Respiratory (pneumonia, asthma, etc.), Endocrine (diabetes, high cholesterol, etc.), Nervous system (Alzheimer’s MS, epilepsy, etc.), Neoplasms (cancer, tumors, etc.)

Question 3

In order for the Affordable Care Act to be economically viable what needs to occur?

A. Insurers need to spread risk across a broad pool of enrollees
B. Health insurance needs to include more older adults to reflect the aging population
C. Young adults need to pay for their own insurance and not rely on parents
D. There needs to be lifetime limits on coverage
E. Insurance companies need to be able to increase premium rates at their own discretion

Answer 3

Correct answer is A. To keep health insurance affordable in this market, insurers need to spread risk across a broad pool of enrollees, including younger, healthier people, to offset the costs of older, sicker people. Although there are many older adults in the population, their cost of care is typically much higher than young and middle aged individuals. Some of the key features of the ACA include having young adults, under age 26, be eligible for coverage under their parent’s plan, ending lifetime limits on coverage, and limiting premium rate increases.

Question 4

According to national statistics, what is the largest source of healthcare spending

A. Out-of-pocket
B. Third-party payers
C. Government Public Health Activities
D. Health insurance

Answer 4

Correct answer is D. According to data from 2013, Health Insurance (including private health insurance, Medicare, Medicaid, VA, DOD, CHIP, etc.) is the largest source of U.S. spending on health care.