Health Care Administration Mock
Exam: 2026 Edition||Questions And
Answers With Rationales/Graded
A+/2026 Update/100% Correct
/Instant Download
Total Questions: 80
Time Allowed: 120 minutes
Passing Score: 70%
Instructions: Select the single best answer for each question. Rationale answers
are highlighted in bold with a rationale provided.
Section I: Health Care Systems & Policy (Questions 1-15)
1. In 2026, the Centers for Medicare & Medicaid Services (CMS) has fully
implemented the “Global Mental Health Parity Rule.” Which statement best
describes a health system’s administrative responsibility under this rule?
a) Providing free telehealth for all mental health visits regardless of medical
necessity
b) Ensuring that prior authorization requirements for mental health are no stricter
than for medical/surgical benefits
c) Outsourcing all psychiatric care to third-party apps without integration into the
EHR
d) Limiting mental health visits to 20 per year for all insurance tiers
Rationale Answer: b – *Rationale: Mental health parity requires equal treatment
of mental and physical health conditions in terms of coverage limits, pre-
authorization, and cost-sharing. Option b reflects the 2026 CMS final rule.*
2. A rural hospital is facing closure due to low patient volume. Which 2026 federal
program offers the most direct financial support to keep essential services open?
a) Medicare Advantage Value-Based Insurance Design (VBID) Model
,b) Rural Emergency Hospital (REH) designation
c) Accountable Care Organization Realizing Equity, Access, and Community
Health (ACO REACH)
d) Direct Contracting Entity (DCE)
Rationale Answer: b – *Rationale: REH, established as a permanent model by
2026, allows small rural hospitals to convert to emergency-only facilities with
enhanced Medicare reimbursement.*
3. The Hospital Price Transparency Rule (effective since 2021) was strengthened in
2025 with automatic penalties for non-compliance. Which data point must be
posted in a machine-readable file?
a) Average patient satisfaction scores by physician
b) De-identified minimum and maximum negotiated rates for all items and services
c) Individual employee salaries for administration
d) Daily census numbers for each department
Rationale Answer: b – Rationale: The rule mandates posting of standard
charges, including gross charges, payer-specific negotiated rates, and de-identified
minimum/maximum negotiated rates.
4. What is the primary purpose of a Health Information Exchange (HIE) in
2026?
a) To replace electronic health records in small clinics
b) To enable secure, interoperable sharing of patient data across different
organizations
c) To bill Medicare for population health management
d) To conduct prior authorizations automatically
Rationale Answer: b – Rationale: HIE is the electronic movement of health-
related data among disparate systems, improving care coordination.
5. The 2026 CMS “Enhancing Oncology Model (EOM)” emphasizes:
a) Fee-for-service payments for each chemotherapy session
b) 6-month episode payments with health equity adjustments for social risk factors
c) Mandatory hospital admission for all stage IV cancer patients
d) Excluding palliative care from reimbursement
Rationale Answer: b – Rationale: EOM (successor to the Oncology Care Model)
uses episode-based payment and includes adjustments for health equity to address
disparities.
, 6. A hospital’s compliance officer discovers that a physician has been billing
Medicare for “incident-to” services without direct physician supervision (as
required by 2026 rules). This is an example of:
a) Medical necessity error
b) Fraudulent billing
c) Clinical documentation improvement
d) Telehealth parity violation
Rationale Answer: b – Rationale: “Incident-to” billing without proper
supervision violates Medicare rules and can be prosecuted as fraud.
7. Which of the following is not a core objective of the 2026 National Health
Equity Strategy (NHES)?
a) Reducing racial and ethnic disparities in maternal mortality
b) Mandating equal nurse-to-patient ratios across all hospitals
c) Increasing data collection on sexual orientation and gender identity (SOGI)
d) Expanding community health worker (CHW) reimbursement under Medicaid
Rationale Answer: b – Rationale: The NHES focuses on data, workforce, and
outcomes; nurse ratios are generally state-regulated, not a national NHES core
objective.
8. In 2026, the No Surprises Act (NSA) fully applies to air ambulance services.
What does this prohibit?
a) Air ambulances from transporting COVID-19 patients
b) Balance billing for out-of-network air ambulance services in emergency
situations
c) Air ambulances using helicopters instead of fixed-wing aircraft
d) Billing Medicare for air ambulance services
Rationale Answer: b – Rationale: The NSA extension to air ambulances prevents
surprise bills for patients who had no choice of provider in an emergency.
9. A health system wants to achieve “Magnet Recognition” in 2026. Which
department must take the lead?
a) Finance
b) Nursing Administration
c) Human Resources
d) Information Technology
Exam: 2026 Edition||Questions And
Answers With Rationales/Graded
A+/2026 Update/100% Correct
/Instant Download
Total Questions: 80
Time Allowed: 120 minutes
Passing Score: 70%
Instructions: Select the single best answer for each question. Rationale answers
are highlighted in bold with a rationale provided.
Section I: Health Care Systems & Policy (Questions 1-15)
1. In 2026, the Centers for Medicare & Medicaid Services (CMS) has fully
implemented the “Global Mental Health Parity Rule.” Which statement best
describes a health system’s administrative responsibility under this rule?
a) Providing free telehealth for all mental health visits regardless of medical
necessity
b) Ensuring that prior authorization requirements for mental health are no stricter
than for medical/surgical benefits
c) Outsourcing all psychiatric care to third-party apps without integration into the
EHR
d) Limiting mental health visits to 20 per year for all insurance tiers
Rationale Answer: b – *Rationale: Mental health parity requires equal treatment
of mental and physical health conditions in terms of coverage limits, pre-
authorization, and cost-sharing. Option b reflects the 2026 CMS final rule.*
2. A rural hospital is facing closure due to low patient volume. Which 2026 federal
program offers the most direct financial support to keep essential services open?
a) Medicare Advantage Value-Based Insurance Design (VBID) Model
,b) Rural Emergency Hospital (REH) designation
c) Accountable Care Organization Realizing Equity, Access, and Community
Health (ACO REACH)
d) Direct Contracting Entity (DCE)
Rationale Answer: b – *Rationale: REH, established as a permanent model by
2026, allows small rural hospitals to convert to emergency-only facilities with
enhanced Medicare reimbursement.*
3. The Hospital Price Transparency Rule (effective since 2021) was strengthened in
2025 with automatic penalties for non-compliance. Which data point must be
posted in a machine-readable file?
a) Average patient satisfaction scores by physician
b) De-identified minimum and maximum negotiated rates for all items and services
c) Individual employee salaries for administration
d) Daily census numbers for each department
Rationale Answer: b – Rationale: The rule mandates posting of standard
charges, including gross charges, payer-specific negotiated rates, and de-identified
minimum/maximum negotiated rates.
4. What is the primary purpose of a Health Information Exchange (HIE) in
2026?
a) To replace electronic health records in small clinics
b) To enable secure, interoperable sharing of patient data across different
organizations
c) To bill Medicare for population health management
d) To conduct prior authorizations automatically
Rationale Answer: b – Rationale: HIE is the electronic movement of health-
related data among disparate systems, improving care coordination.
5. The 2026 CMS “Enhancing Oncology Model (EOM)” emphasizes:
a) Fee-for-service payments for each chemotherapy session
b) 6-month episode payments with health equity adjustments for social risk factors
c) Mandatory hospital admission for all stage IV cancer patients
d) Excluding palliative care from reimbursement
Rationale Answer: b – Rationale: EOM (successor to the Oncology Care Model)
uses episode-based payment and includes adjustments for health equity to address
disparities.
, 6. A hospital’s compliance officer discovers that a physician has been billing
Medicare for “incident-to” services without direct physician supervision (as
required by 2026 rules). This is an example of:
a) Medical necessity error
b) Fraudulent billing
c) Clinical documentation improvement
d) Telehealth parity violation
Rationale Answer: b – Rationale: “Incident-to” billing without proper
supervision violates Medicare rules and can be prosecuted as fraud.
7. Which of the following is not a core objective of the 2026 National Health
Equity Strategy (NHES)?
a) Reducing racial and ethnic disparities in maternal mortality
b) Mandating equal nurse-to-patient ratios across all hospitals
c) Increasing data collection on sexual orientation and gender identity (SOGI)
d) Expanding community health worker (CHW) reimbursement under Medicaid
Rationale Answer: b – Rationale: The NHES focuses on data, workforce, and
outcomes; nurse ratios are generally state-regulated, not a national NHES core
objective.
8. In 2026, the No Surprises Act (NSA) fully applies to air ambulance services.
What does this prohibit?
a) Air ambulances from transporting COVID-19 patients
b) Balance billing for out-of-network air ambulance services in emergency
situations
c) Air ambulances using helicopters instead of fixed-wing aircraft
d) Billing Medicare for air ambulance services
Rationale Answer: b – Rationale: The NSA extension to air ambulances prevents
surprise bills for patients who had no choice of provider in an emergency.
9. A health system wants to achieve “Magnet Recognition” in 2026. Which
department must take the lead?
a) Finance
b) Nursing Administration
c) Human Resources
d) Information Technology
