Question: Medigap policies are designed to offer:
Answer Options:
a. coverage for Part D out-of-pocket spending
b. coverage for dental and vision care
c. first-dollar coverage for out-of-pocket spending on deductibles and coinsurance
d. long-term care coverage for the elderly
e. catastrophic coverage for costs that exceed traditional Medicare’s out-of-pocket maximum
Answer: c. first-dollar coverage for out-of-pocket spending on deductibles and coinsurance
Question: Which benefits are provided through Part A of Medicare?
Answer Options:
a. Outpatient prescription drug insurance
b. Medicare Advantage (MA)
c. Medical hospital insurance
d. Supplemental medical insurance
Answer: c. Medical hospital insurance
Question: The amount that Medicare pays a hospital for treating a Medicare patient is determined:
Answer Options:
a. after the hospital bill is reviewed by Medicare auditors
b. after medical services are provided
c. before the patient sees a physician
d. at the time of admission to the hospital
e. at the point when the diagnosis is made
Answer: d. at the time of admission to the hospital
Question: In general, the longer a drug is on the market, the:
Answer Options:
a. lower its return on sales
b. higher its return on sales
c. less likely it is that the company will develop other new drugs
d. higher its after-tax profit
Answer: a. lower its return on sales
Question: How do individuals enroll in Part A of Medicare?
Answer Options:
a. Individuals must first enroll in Part B in order to be considered for Part A
b. Enrollment is voluntary and must be requested through the Centers for Medicare and Medicaid Services (CMS)
c. Enrollment is based on physician recommendation
d. Individuals are automatically enrolled on their 65th birthday as long as they or their spouse has paid into the Social Security system for 10 years
Answer: d. Individuals are automatically enrolled on their 65th birthday as long as they or their spouse has paid into the Social Security system for 10 years
Question: Which of the following statements is true concerning the trend in community hospital care between inpatient and outpatient services since the mid-1980s?
Answer Options:
a. There has been no noticeable trend in either inpatient or outpatient services
b. Both inpatient and outpatient services have been growing
c. Outpatient services have been declining, while inpatient services have been growing
d. Outpatient services have been growing, while inpatient services have been declining
e. Both inpatient and outpatient services have been declining
Answer: d. Outpatient services have been growing, while inpatient services have been declining
Question: Data from a study of retail drug prices by the Organization for Economic Co-operation and Development and Eurostat (2008) showed that:
Answer Options:
a. the United States had the highest retail drug prices among the 30 countries studied
b. high-income countries can keep their drug prices below the Organization for Economic Co-operation and Development average by relying on strict price controls
c. there is some evidence that pharmaceutical prices are highly correlated with a country’s per capita gross domestic product
d. United States’ drug prices are double the Organization for Economic Co-operation and Development average
Answer: c. there is some evidence that pharmaceutical prices are highly correlated with a country’s per capita gross domestic product
Question: Which of the following statements about the distribution of physicians among specialties is true in the United States?
Answer Options:
a. There are twice as many generalists as there are specialists
b. The specialty distribution in the United States is similar to that of the rest of the world
c. There are twice as many specialists as there are generalists
d. The majority of physicians specialize in general/family practice
Answer: c. There are twice as many specialists as there are generalists
Question: Danzon and Furukawa (2003) argue that:
Answer Options:
a. the provision of government-provided free care increases the availability of newly introduced drugs to everyone covered by the government plan
b. generic competition in the United States has not done much to lower drug prices or spending
c. price controls in the United States would lower drug prices without affecting the overall availability of branded drugs or lowering incentives for future drug development
d. pharmaceutical price differences across countries are roughly in line with differences in per capita gross domestic product, supporting the predictions of Ramsey pricing practices
Answer: d. pharmaceutical price differences across countries are roughly in line with differences in per capita gross domestic product, supporting the predictions of Ramsey pricing practices
Question: Several reform options have been discussed by Congress to solve some of the structural problems that plague the program. Which of the following options has received little support?
Answer Options:
a. Instead of the current open-ended structure of the program, provide premium support directly to individuals allowing them to purchase the plan of their choice
b. Limit the coverage for end-of-life care, the most expensive single item in Medicare, to include only essential palliative care
c. Raise the eligibility age gradually, much like the changes that were made to Social Security eligibility
d. Place limits on the purchase of complementary Medigap insurance that provides first-dollar coverage to pay deductibles and coinsurance
e. To simplify the benefit structure, roll Parts A, B, and D into one plan with one deductible and uniform coinsurance rates
Answer: b. Limit the coverage for end-of-life care, the most expensive single item in Medicare, to include only essential palliative care
Question: In general, the longer a drug is on the market, the:
Answer Options:
a. lower its return on sales
b. higher its return on sales
c. less likely it is that the company will develop other new drugs
d. higher its after-tax profit
Answer: a. lower its return on sales
Question: Using the physician-control model to explain hospital behavior leads to which of the following conclusions?
Answer Options:
a. Physicians will strive to use the nursing staff efficiently
b. Other medical inputs tend to be overused to maximize physicians’ productivity
c. All investment decisions will be based on optimal resource use
d. The use of operating rooms will be maximized with little excess capacity
Answer: b. Other medical inputs tend to be overused to maximize physicians’ productivity