978-1259723223 Test Bank TBChap024 Part 3

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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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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

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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

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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?

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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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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?

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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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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

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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.

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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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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.

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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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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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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?