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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A. are only available to those enrolled in Medicare.
B.
allow workers to accumulate untaxed dollars for payment of qualified medical expenses.
C. are criticized because they require workers to "use it or lose it" each year; workers are
not allowed to accumulate balances over time.
D. can only be used to pay for prescription drugs.
89. What was the primary goal of the proponents of the Patient Protection and Affordable
Care Act?
90. The employer mandate of the PPACA requires that
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24-06 Summarize the goals of the Patient Protection and Affordable
Care Act and the major changes that it institutes.
Test Bank: I
To pic: The Patient Protection and Affordable Care Act
91. Which of the following is a provision of the Patient Protection and Affordable Care
Act?
92. One of the provisions of the PPACA is a personal mandate that all individuals
24-43
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Care Act and the major changes that it institutes.
Test Bank: I
To pic: The Patient Protection and Affordable Care Act
93. Which of the following is not one of the ways the PPACA attempts to cover the poor?
94. Subsidies for those required to purchase health insurance under the personal mandate
provision of the PPACA are
95. Insurance exchanges
24-44
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
regulation.
C. are government-regulated markets where prices are set directly by federal regulators.
D. allow patients to get medical treatment when away from the providers covered by their
regular health insurance.
96. Which of the following provisions of the PPACA do proponents expect to reduce the
growth of health care spending?
97. Which of the following is not one of the new taxes imposed under the PPACA?
24-45
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Care Act and the major changes that it institutes.
Test Bank: I
To pic: The Patient Protection and Affordable Care Act
98. Which of the following was not an objection raised by opponents of the Patient
Protection and Affordable Care Act?
99. What is the primary purpose of the insurance exchanges set up by the PPACA?
100. Subsidy provisions under the Patient Protection and Affordable Care Act were
designed so that individuals just above the 133 percent of poverty level threshold would
have to spend no more than percent of their income purchasing health insurance.
101. (Consider This) Which of the following best explains why hospital charges of $25 per
aspirin are not unusual?
102. (Consider This) In 2014, the Medicare and Medicaid programs reimbursed
approximately what percentage of hospitals' total cost of providing care to the patients
covered by those programs?
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D. 105 percent
103. (Consider This) Subsidies to encourage hospitals and physicians to adopt electronic
medical records have resulted in which of the following?
104. (Consider This) Which of the following was a major objective of the Health
Information Technology for Economic and Clinical Health Act?
24-48
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written consent of McGraw-Hill Education.
Test Bank: I
To pic: Why the Rapid Rise in Costs?
105. (Consider This) The PPACA was intended to slow growth in health care costs and
expand health care coverage to all Americans. Which of the following is not one of
problems that has occurred since implementation?
106. (Consider This) The PPACA created incentives for firms to
107. (Consider This) PPACA requirements for health insurance rates created incentives for
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
C.
older people to purchase, but younger people to decline, health insurance offered
through insurance exchanges.
D. younger people to purchase, but older people to decline, health insurance offered
through insurance exchanges.
108. (Last Word) Singapore encourages competition in its health care market by
109. (Last Word) Whole Foods Market's personal wellness accounts for employees
24-50
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
the financial incentives facing either patients or health service providers.
Test Bank: I
To pic: Cost Containment: Altering Incentives
110. (Last Word) Indiana's health care plan for state employees
111. As a percentage of GDP, U.S. health care spending is higher than that of any other
major industrial country.
112. The health care industry currently absorbs about 17.5 percent of U.S. gross domestic
product.
113. Since 1960, health care costs in the United States have risen absolutely but remained
constant as a percentage of gross domestic product.
114. Rising health care costs have prompted workers to change jobs with greater frequency.
115. There is a consensus among economists that the amount of resources allocated to the
health care industry is optimal.
24-52
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Di f f i c u l t y : 02 Medium
Learning Objective: 24-02 Relate the economic implications of rising health care costs.
Test Bank: I
To pic: Economic Implications of Rising Costs
116. Some employers have reacted to rising health care costs by hiring more part-time and
temporary workers.
117. About three-fourths of all health care costs are paid out of pocket by patients.
118. In 2015, some 30 million Americans did not have health insurance.
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written consent of McGraw-Hill Education.
To pic: Limited Access
119. The demand for health care is highly elastic with respect to both price and income.
120. Because of health insurance, resources are underallocated to the health care industry.
121. Technological progress in the health care industry has typically reduced costs and
increased supply.
122. Changes in the average age of the U.S. population over the past decade have
decreased the demand for health care.
123. Asymmetric information in the health care market has increased the supply of health
care.
124. A moral hazard problem arises in the health care market because health insurance
encourages people to overconsume health care.
125. Insurance companies use deductibles and copayments to control increases in the
amount of health care demanded.
126. Because employer payments for health insurance are not subject to income or payroll
taxes, government in effect provides a subsidy to health care.
127. Preferred provider organizations (PPOs) are a type of managed-care organization.
128. The federal government in 2006 enacted limits on "pain and suffering" awards on
medical malpractice lawsuits against physicians.
24-56
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di f f i c u l t y : 02 Medium
Learning Objective: 24-05 Describe the cost-containment strategies that rely on altering
the financial incentives facing either patients or health service providers.
Test Bank: I
To pic: Cost Containment: Altering Incentives
129. The Patient Protection and Affordable Care Act requires all firms to purchase health
insurance for their employees or pay a $2,000 fine.
130. The Patient Protection and Affordable Care Act prohibits insurance companies from
denying coverage to anyone on the basis of a preexisting medical condition.
Multiple Choice Questions
131. The health care industry encompasses the following sectors, except
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132. What are the two major problems facing the health care system of the United States?
133. The Patient Protection and Affordable Care Act (PPACA) of 2010 is designed to
address a wide-ranging set of issues including the following, except
134. Health care spending was about what percentage of U.S. GDP in 2014?
135. About how many people were employed in the U.S. health care industry in 2014?
136. The heavy reliance on private health insurance in the U.S. began during World War II,
as a
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written consent of McGraw-Hill Education.
United States.
Test Bank: II
Topic: The Health Care Industry
137. After WWII, a provision in the federal tax law favored company-provided health
insurance over individual-purchased health insurance. By 2007, about what percentage of
people with private health insurance in the U.S. received it as an employer-provided
benefit?
138. In recent decades, the cost of health care has
139. Health care spending in the next 10 years is projected to grow at an annual rate of
about
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written consent of McGraw-Hill Education.
B.
6 percent.
C. 14 percent.
D. 20 percent.
140. Access to health care is a highly publicized problem in the U.S. The number of
Americans in 2015 who did not have health insurance coverage was approximately
141. About what percentage of total health care spending went to doctors and hospitals
(excluding nursing homes) in 2014?
