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24-97
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A. hospitals now receive a fixed payment for treating each patient.
B.
the average length of a hospital stay has increased.
C. more patients are treated on an outpatient basis.
D. hospitals now have an incentive to restrict the amount of resources used for patients.
224. Supporters of setting a cap on medical malpractice (or "pain and suffering") awards
do not argue which of the following?
225. The Patient Protection and Affordable Care Act (PPACA) was signed into law by
24-98
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: II
To pic: The Patient Protection and Affordable Care Act
226. The Patient Protection and Affordable Care Act (PPACA) of 2010 is more commonly
known as
227. Proponents of the Patient Protection and Affordable Care Act (PPACA) had one major
goal, which is
228. Which of the following is not an element of the Patient Protection and Affordable Care
Act (PPACA)?
24-99
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
on those that they insure.
C. All firms with 50 or more employees are required to purchase insurance for their
workers or pay a fine
D. Individuals who are not covered by either government- or employer-provided insurance
are required to purchase health insurance for themselves and their dependents
229. The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-
insurance coverage to low-income people through the following methods, except
230. The Patient Protection and Affordable Care Act (PPACA) includes the establishment
of "insurance exchanges" in each state, the purpose of which is to
24-100
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: 24-06 Summarize the goals of the Patient Protection and Affordable
Care Act and the major changes that it institutes.
Test Bank: II
To pic: The Patient Protection and Affordable Care Act
231. In order to help pay for the costs of extending health insurance to previously uninsured
people, the PPACA imposes new taxes, including the following, except
232. Major criticisms against the Patient Protection and Affordable Care Act (PPACA) do
not include which of the following arguments?
24-101
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: II
To pic: The Patient Protection and Affordable Care Act
233. By early 2016, after PPACA had been in effect for two years, one major problem that
became apparent was that
234. After two years of being in effect by early 2016, one apparent implementation
problem that the PPACA faced was that
235. Singapore's health care system is identified by critics of the PPACA as one good
alternative system to study and emulate. Singapore does not have which of the following
characteristics?
236. Singapore's health care system includes the following major elements, except
237. The experiences of Singapore, Whole Foods Markets, and the State of Indiana all
point to one major factor that could reduce, if not eliminate, overconsumption of health
care. And that is
24-103
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
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: II
To pic: The Patient Protection and Affordable Care Act
True / False Questions
238. The health care industry includes the manufacture and sale of low-fat food.
239. Most industrialized countries emphasize private health insurance paid by employers,
to provide coverage for most workers in each nation.
240. Employers in the U.S. started offering health insurance as a fringe benefit to their
employees during World War II as a way of getting around the wage controls that were in
effect then.
24-104
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
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: 24-01 Convey important facts about rising health care costs in the
United States.
Test Bank: II
To pic: The Health Care Industry
241. The prominence of employer-provided health insurance in the U.S. is one major cause
of the overconsumption and rapidly rising costs of health care in the country.
242. The twin problems of health care in the U.S. are the rapidly rising cost of health care
and limited access to health insurance coverage.
243. The recently enacted health care reform package (the Patient Protection and
Affordable Care Act) focuses solely on controlling health care costs.
24-105
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: 24-01 Convey important facts about rising health care costs in the
United States.
Test Bank: II
To pic: The Health Care Industry
244. Medicare is the nationwide federal health care program available to Social Security
beneficiaries and the disabled.
245. Health care expenditures as a percentage of GDP are lower in the United States than in
Germany, France, or Canada.
246. In recent decades, health care expenditures in the U.S. have been rising in absolute
terms, but falling as a percentage of GDP.
24-106
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 24-01 Convey important facts about rising health care costs in the
United States.
Test Bank: II
To pic: The Health Care Industry
247. Rising health care costs have contributed to slower growth in real wages of workers.
248. The increasing use of part-time and temporary workers can partly be blamed on the
rising health care costs to employers.
249. Some low-income workers are not covered by Medicaid because of the income that
they are earning from their jobs.
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250. U.S. hospitals provide a significant amount of uncompensated, or "free," health care
every year to the uninsured poor who are rushed in for emergency or critical care.
251. The fee-for-service arrangement for paying doctors is one way to reduce health care
costs.
252. "Defensive medicine" means the same thing as "preventive medicine."
253. The asymmetric information problem in health care implies that the demand for health
care is a "supplier-induced demand."
24-108
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
TRUE
254. The moral hazard problem created by health insurance induces consumers to
underconsume health care.
255. Health insurance induces consumers to adopt less prevention and overconsumption of
health care.
256. The provision of health insurance leads to a deadweight loss due to an overallocation
of resources to health care.
24-109
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Remember
Difficulty: 01 Easy
Learning Objective: 24-04 List the demand and supply factors explaining rising health
care costs.
Test Bank: II
To pic: Why the Rapid Rise in Costs?
257. Raising deductibles and copayments in health insurance plans is one effective way to
contain health care costs.
258. Managed-care organizations attempt to control their enrolled members' use of health
care as a way of containing costs.
259. Health maintenance organizations (HMOs) are like health clubs that operate facilities
where people can exercise and get physical training.
24-110
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: II
To pic: Cost Containment: Altering Incentives
260. Health savings accounts enable individuals who have high-deductible private
insurance to place tax-free dollars into special accounts that can be used to pay for medical
expenses.
262. Aside from new taxes, the Patient Protection and Affordable Care Act (PPACA) aims
to generate revenue by enforcing a personal mandate that requires all individuals not
covered by employer- or government-provided health insurance to purchase insurance.
24-111
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: 24-06 Summarize the goals of the Patient Protection and Affordable
Care Act and the major changes that it institutes.
Test Bank: II
To pic: The Patient Protection and Affordable Care Act
263. The Patient Protection and Affordable Care Act (PPACA) bans the previous practice
of insurance companies to deny coverage based on preexisting conditions.
264. One way that the Patient Protection and Affordable Care Act (PPACA) hopes to foster
competition among health insurance companies is through so-called insurance exchanges.
265. The Patient Protection and Affordable Care Act (PPACA) sets up so-called insurance
exchanges where consumers can compare various insurance policies that meet certain
government-set standards.
24-112
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: 24-06 Summarize the goals of the Patient Protection and Affordable
Care Act and the major changes that it institutes.
Test Bank: II
To pic: The Patient Protection and Affordable Care Act
266. One of the taxes included in the Patient Protection and Affordable Care Act (PPACA)
to generate revenue is a tax on junk food.
