Sample Questions

Question 1

The US is the developed country that spends the most in health care per capita

Answer 1

True

Question 2

Health insurers act as a third party involved in a health care transaction

Answer 2

True

Question 3

Medicare is an example of a private insurance program

Answer 3

False

Question 4

An example of moral hazard is purchasing life and health insurance and going climbing the Himalaya

Answer 4

True

Question 5

There is limited competition in the health care market

Answer 5

True

Question 6

In general, people dislike risk, so they are willing to pay a third party (insurer) to assume it

Answer 6

True

Question 7

A deductible is the maximum amount of money you can spend on health care cost out-of-pocket in a year

Answer 7

False

Question 8

Generally, HMOs provide coverage only for in-network providers

Answer 8

True

Question 9

Medicare is the primary source of health insurance for those over 65 years of age

Answer 9

True

Question 10

Employer-sponsored insurance is the primary source of health insurance for working adults

Answer 10

True

Question 11

Uninsured rates decreased in the US after the enactment of the Affordable Care Act

Answer 11

True

Question 12

Under current law, employer sponsored health insurance counts as taxable income

Answer 12

False

Question 13

Health insurance is cheaper in California than Texas because state income taxes are higher in California than Texas

Answer 13

False

Question 14

It costs the same amount of money for an employer to give a $5,000 health insurance policy to their employees than a $5,000 raise

Answer 14

False

Question 15

The point of consumer-directed health plans is to make individuals “have skin in the game”, that is, to make them more sensitive to costs by having to pay full costs until the deductible is met

Answer 15

True

Question 16

The rationale behind the inclusion of a health savings account in a high deductible plan is to use pre-tax dollars to pay for the health care costs incurred before the deductible is met

Answer 16

True

Question 17

Medicare is the main source of insurance for children

Answer 17

False

Question 18

Medicare is funded through a combination of payroll taxes, beneficiary-paid premiums, and general tax revenue

Answer 18

True

Question 19

Medicare covers individuals with end-stage renal disease

Answer 19

True

Question 20

All drugs administered to Medicare beneficiaries, regardless of whether they get them in a physician office or from a pharmacy, are covered by Medicare Part D

Answer 20

False

Question 21

Medicare Part A is financed by payroll taxes

Answer 21

True

Question 22

Medicare is a federal program

Answer 22

True

Question 23

Medicare Advantage plans may cover outpatient prescription drugs

Answer 23

True

Question 24

Medicare Advantage plans take a risk-adjusted capitated payment from Medicare and are responsible for covering medical services to their beneficiaries

Answer 24

True

Question 25

Medicare was enacted under Obama’s administration

Answer 25

False

Question 26

The coverage gap was a phase of the original standard benefit design of Medicare Part D where individuals were responsible for 100% of drug costs

Answer 26

True

Question 27

Since its inception in 1965, Medicare has had 4 parts (A, B, C, D), and has covered hospital admissions, provider services and outpatient prescription drugs

Answer 27

False

Question 28

Each state administers its Medicare program

Answer 28

False

Question 29

Medicare Part B covers physician services

Answer 29

True

Question 30

Medicare Part B covers hospitalizations

Answer 30

False

Question 31

Drugs administered in physician offices are mostly covered by Medicare Part B

Answer 31

True

Question 32

Drugs dispensed in community pharmacies are mostly covered by Part D

Answer 32

True

Question 33

Some drugs can be covered by both Parts B and D

Answer 33

True

Question 34

The federal government mandates that all states cover prescription drugs under Medicaid

Answer 34

False

Question 35

Medicaid is an important source of funding for long-term care

Answer 35

True

Question 36

Medicaid is fully financed by the states

Answer 36

False

Question 37

Medicaid is an important source of insurance coverage for children

Answer 37

True

Question 38

Some states rely on Medicaid Managed Care Organizations for the administration of Medicaid insurance coverage

Answer 38

True

Question 39

Historically, Medicaid has had lower reimbursement rates than Medicare and commercial insurance

Answer 39

True

Question 40

The Affordable Care Act aimed to implement Medicare for all

Answer 40

False

Question 41

The Affordable Care Act was enacted in 1965

Answer 41

False

Question 42

The Affordable Care Act aimed to decrease uninsured rates through the implementation of a package of reforms

Answer 42

True

Question 43

The Affordable Care Act resulted in an increase in the number of individuals who have health insurance

Answer 43

True

Question 44

One of the strategies employed by the Affordable Care Act’s strategy to decrease uninsured rates was Medicaid expansion

Answer 44

True

Question 45

The Affordable Care Act mandated individuals to purchase insurance through the implementation of a penalty for those failing to get insurance

Answer 45

True

Question 46

The Affordable Care Act prohibited insurers from using pre-existing conditions for underwriting

Answer 46

True

Question 47

The point of the Affordable Care Act individual mandate was to bring healthy individuals into the health insurance risk pool

Answer 47

True