—Healthcare Payment, Cost Drivers & + Test Bank Chapter.10 - Test Bank | U.S. Health Policy & Government 1e by Higbea by Raymond J. Higbea. DOCX document preview.

—Healthcare Payment, Cost Drivers & + Test Bank Chapter.10

Chapter 10—Healthcare Payment, Cost Drivers & Behavioral Economics

Multiple Choice

  1. Which of the following factors have contributed to the devolution of a near perfect healthcare market to an imperfect market?

[1] Knowledge asymmetry

[2] Scientific advancements

[3] Blurring of cost transparency

[4] 1. & 3. 

[5] 1., 2., & 3.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following is the most accurate historical progression of payment for health services since the Industrial Revolution?

[1] Prepaid plans - Blue Shield - Sickness Funds - Employer Tax Deduction - Medicare & Medicaid

[2] Prepaid plans - Blue Cross - Sickness Funds - Employer Tax Deduction - Medicare & Medicaid

[3] Prepaid Plans - Sickness Funds - Blue Shield - Employer Tax Deduction - Medicare & Medicaid

[4] Sickness Funds - Prepaid Plans - Blue Cross - Medicare & Medicaid - Employer Tax Deduction 

[5] Sickness Funds - Prepaid Plans - Blue Shield - Medicare & Medicaid - Employer Tax Deduction 

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following set of actions contributed to the establishment of a tax deduction for employer sponsored health insurance?

[1] War Labor Board wage and price freeze allowance of non-cash wages (benefits - health insurance)

[2] Supreme Court Ruling that benefits could be included in labor negotiations

[3] Hospital Survey and Construction Act linking hospital construction incentives to provision of charity care.

[4] 1. & 2. 

[5] 1. & 3.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Complete the sentence with the most appropriate words or phrases. Since the mid 1960s, healthcare legislation has sought to increase __________, decrease __________, and increase __________.

[1] cost - access - quality

[2] access - cost - quality

[3] quality - access - cost

[4] accountability - access - cost

[5] cost - accountability – access

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application

  1. Which of the following are elements of modern health insurance plans?

[1] Prepaid plans (preventive care)

[2] Indemnification (hospital and rehabilitation care)

[3] Reinsurance (loss prevention)

[4] 1. & 2.

[5] 1., 2., & 3.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application

  1. Complete the sentences with the most appropriate words or phrases.

Physicians function as __________ for patients.  While physicians claim __________ agency, research documents they function as __________.  Physician pay is __________ and __________ to OECD peers.

[1] agents - moral - agents of economic self-interest - high - comparable

[2] agents - moral - agents of economic self-interest - high - not comparable

[3] agents - moral - agents of economic self-interest - moderate - not comparable

[4] agents - economic - moral - high - not comparable

[5] principles - economic - moral - moderate – comparable

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application

  1. Which of the following statements regarding aging and healthcare costs is NOT true?

[1] From 60 years of age to 90 years of age, the cost of healthcare services for men and women escalates at the same rate.

[2] At age 90 years, the cost of healthcare services for women plateaus while the cost for men continues to escalate.

[3] The Medicare costs for a 95-year old retiree is 3 times higher for an individual who retired at 55 years of age than one who retired at 70 years of age.

[4] Scholars have documented that 25% to 30% of lifetime medical expenditures occur in the last year of life with 80% of those costs occurring in the last 60 days of life.

[5] Hospice admission lengths of stay have doubled from 48 days in 1998 to 73 days in 2009.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which neoclassical / behavioral economic dyad is NOT correct?

[1] Rational / Not Rational

[2] Preferences / Experience

[3] Full Information / Incomplete Information

[4] Path Independent / Path Dependent

[5] Mistakes Systematic / Mistakes Random

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following concepts ARE associated with hedonic and decision efficiency?

[1] Decision efficiency occurs when payment is coupled with purchase.

[2] Decision efficiency occurs when system 2 thinking over powers system 1 thinking.

[3] Hedonic efficiency occurs when payment is decoupled from purchase.

[1] 1. & 2.

[5] 1. & 3.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following is NOT associated with getting to zero?

[1] Moral hazard

[2] Perceived value gain

[3] 1974 Rand Insurance experiment

[4] Increased price salience to avoid moral hazard

[5] Increased price vividness through minimal payment coupling

Subject: Chapter 9

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following is NOT true about USA Healthcare payment?

[1] It is incented to increase volume

[2] It is incented to reward hard work

[3] It is incented to only provide necessary care

[4] It is incented to encourage prevention over treatment

[5] It is incented to toward fraud

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following is TRUE about USA Healthcare payment?

[1] The Hill-Burton Act of 1946 encouraged the construction of long-term care facilities

[2] Medicare payment schema evolved from the Hill-Burton Act

[3] Medicare was modeled after 1960 BC/BS plans

[4] Medicare cost increases have been in line with CPI inflation

[5] Medicare’s enactment of the Prospective Payment System had no effect on how hospitals delivered care

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following statements is NOT true about physician payment?

[1] Physician practice has not been incented by the fee-for-service payment model

[2] Physicians have been incented to become specialists in part as a result of the payment system

[3] The payment model has caused medical specialists to move from cognitive care to procedural care

[4] The high cost of medical care incents physicians to pursue specialty practice

[5] The payment model for physicians is going to have to change if we are going to bring costs under control

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Which of the following statements is NOT true about the economics of health care?

[1] The first substantial attempt to control Health Service Organization costs was the Prospective Payment system

[2] Payment models have incented the evolution of how Health Service Organizations deliver healthcare

[3] Basic scientific research grants are provided by the CDC

[4] Our aging population is driving up the cost of healthcare

[5] Excessive end of life care is an avoidable healthcare cost

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

Short Answer & Essay

  1. Discussion question: How are OECD countries relevant to the development of health policy?

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Discussion question: How are payment models relevant to the development of health policy?

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Analysis.

  1. Discussion question: How does payment drive delivery models?

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall.

  1. Discussion question: Provide an example of how the healthcare executive should engage the development of payment models. Discuss.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application

  1. Discussion question: Discuss the complexity of controlling healthcare costs?

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Recall

  1. Discussion question: Discuss how policy can be used to control healthcare costs.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application.

  1. Discussion Question: Discuss how healthcare executives can be involved in developing policies and practices to control healthcare costs.

Subject: Chapter 10

Complexity: Moderate

Simplified Functional Taxonomy: Application.

Document Information

Document Type:
DOCX
Chapter Number:
10
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 10—Healthcare Payment, Cost Drivers & Behavioral Economics
Author:
Raymond J. Higbea

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