MHA 706 Midterm- Lord WITH 104 QUESTIONS AND
ANSWERS NEWEST RATED A+ 2025/2026 NEW EDITION
100% VERIFIED CORRECT
Proprietorships & Partnerships: Pros & Cons - Answers Pros: Ease of Information, Subject to a
few regulations, no corporation income taxes.
Cons: Limited life, difficult to transfer, unlimited life, difficult to raise capital.
Corporations: Pros & Cons - Answers Pros: Unlimited life, easy transfer of ownership, limited
liability, ease of raising capital.
Cons: Cost of formation and reporting, double or triple taxes must be paid.
Non-profit Organization - Answers Exempt from taxes. Goal is to improve community.
For-profit Organizations - Answers (Investor Owned) Goal is to maximize shareholder return.
Owe taxes.
Agency Problem - Answers the possibility of conflict of interest between the stockholders and
management of a firm.
Example: Hire someone to carry out a job function, but they go out of their interests instead of
best interests of company/organization.
Third-party payor system in the US (i.e. private vs public) - Answers Private: Blue Cross Blue
Shield, Commercial Insurers, Self-Insurers. (AETNA)
, Public: Medicare and Medicaid-both offer services to different levels. "Safety net" Lowest
reimbursement rates.
Reimbursement methods (fee-for-service vs. capitation) - Answers Fee for Service: payment is
tied to amount of services provided. (Decades ago) *Dental industry*
Capitation: payment is tied to the size of the covered population (number of enrollees) Payment
is based on per # per month. *Decreasing utilization* Population is healthier.
Medicare reimbursement for different types of providers - Answers Medicare parts A, B & C.
Medicare Part A (aka Hospital Insurance or HI) - Answers Provides hospital insurance
automatically at age 65 (if FICA qualified) at no fee but may have deductible & co-pay.
Medicare Part B - Answers The part of the Medicare program that pays for physician services,
outpatient hospital services, durable medical equipment, and other services and supplies.
Medicare Part C (Medicare Advantage) - Answers •Replaces and covers expenses found in Part
A and B
• Medicare private fee-for-service plans (PFFS)
• Medicare managed care plans (HMOs and PPOs)
• Medicare specialty plans
Medicare—Part D Prescription Drug Coverage - Answers a United States federal-government
program to subsidize the costs of prescription drugs and prescription drug insurance premiums
for Medicare beneficiaries.
Impact of the Affordable Care Act (what the bill changed about the healthcare environment) -
Answers Created new standards, individual mandates, exchanges, and Medicaid expansion.
ANSWERS NEWEST RATED A+ 2025/2026 NEW EDITION
100% VERIFIED CORRECT
Proprietorships & Partnerships: Pros & Cons - Answers Pros: Ease of Information, Subject to a
few regulations, no corporation income taxes.
Cons: Limited life, difficult to transfer, unlimited life, difficult to raise capital.
Corporations: Pros & Cons - Answers Pros: Unlimited life, easy transfer of ownership, limited
liability, ease of raising capital.
Cons: Cost of formation and reporting, double or triple taxes must be paid.
Non-profit Organization - Answers Exempt from taxes. Goal is to improve community.
For-profit Organizations - Answers (Investor Owned) Goal is to maximize shareholder return.
Owe taxes.
Agency Problem - Answers the possibility of conflict of interest between the stockholders and
management of a firm.
Example: Hire someone to carry out a job function, but they go out of their interests instead of
best interests of company/organization.
Third-party payor system in the US (i.e. private vs public) - Answers Private: Blue Cross Blue
Shield, Commercial Insurers, Self-Insurers. (AETNA)
, Public: Medicare and Medicaid-both offer services to different levels. "Safety net" Lowest
reimbursement rates.
Reimbursement methods (fee-for-service vs. capitation) - Answers Fee for Service: payment is
tied to amount of services provided. (Decades ago) *Dental industry*
Capitation: payment is tied to the size of the covered population (number of enrollees) Payment
is based on per # per month. *Decreasing utilization* Population is healthier.
Medicare reimbursement for different types of providers - Answers Medicare parts A, B & C.
Medicare Part A (aka Hospital Insurance or HI) - Answers Provides hospital insurance
automatically at age 65 (if FICA qualified) at no fee but may have deductible & co-pay.
Medicare Part B - Answers The part of the Medicare program that pays for physician services,
outpatient hospital services, durable medical equipment, and other services and supplies.
Medicare Part C (Medicare Advantage) - Answers •Replaces and covers expenses found in Part
A and B
• Medicare private fee-for-service plans (PFFS)
• Medicare managed care plans (HMOs and PPOs)
• Medicare specialty plans
Medicare—Part D Prescription Drug Coverage - Answers a United States federal-government
program to subsidize the costs of prescription drugs and prescription drug insurance premiums
for Medicare beneficiaries.
Impact of the Affordable Care Act (what the bill changed about the healthcare environment) -
Answers Created new standards, individual mandates, exchanges, and Medicaid expansion.
