LSUS MHA 710 EXAM 3 STUDY GUIDE
QUESTIONS ANSWERS COMPLETE
SOLUTION BUNDLE
●● What was the primary function of the Kerr-Mills program?
Answer: To provide access to health care for low-income seniors.
●● What is the fundamental guarantee of the Medicare program?
Answer: It guarantees older Americans access to health care regardless
of their financial circumstances.
●● Which agency administers the Medicare program?
Answer: The Centers for Medicare and Medicaid Services (CMS).
●● What does Medicare Part A cover?
Answer: Medical hospital insurance.
●● What does Medicare Part B cover?
Answer: Supplemental medical insurance.
●● What is Medicare Part C?
Answer: Medicare Advantage.
,●● What does Medicare Part D provide?
Answer: Outpatient prescription drug insurance.
●● How is Medicare primarily funded?
Answer: Through payroll taxes paid by working Americans and their
employers, along with Social Security taxes.
●● What is the primary risk for individuals during long hospital stays
under Medicare?
Answer: They are subjected to larger percentages of the total bill,
creating a risk of catastrophic financial loss.
●● What is the limitation of Medigap supplemental insurance policies?
Answer: They cover up-front costs and some non-covered expenses but
do not protect against catastrophic financial risk.
●● What is the role of Medicare Administrative Contractors (MACs)?
Answer: They process all claims for those participating in the traditional
fee-for-service (FFS) option, including enrollment, payment, and dispute
resolution.
●● Why is Medicare considered more efficient than private insurance
regarding administrative costs?
, Answer: Because of the larger claim size processed by the program.
●● What is the function of the Medicare Board of Trustees?
Answer: To manage the hospital insurance trust fund and oversee the
long-term solvency of the program.
●● What is the 'pay-as-you-go' funding structure of Medicare?
Answer: A system where current older generations rely on the next
generation of workers to pay for their benefits, with no permanent
funding for individuals to invest for their own future spending.
●● When is the hospital insurance trust fund projected to become
insolvent?
Answer: In 2026.
●● What happens to Medicare benefits if the trust fund becomes
insolvent after 2026?
Answer: It is estimated that the fund will only be able to pay 90 percent
of the promised benefits.
●● What was the primary impact of the Affordable Care Act (ACA) on
Medicare?
Answer: It cut more than $740 billion from Medicare spending to help
pay for Medicaid expansion and exchange subsidies.
QUESTIONS ANSWERS COMPLETE
SOLUTION BUNDLE
●● What was the primary function of the Kerr-Mills program?
Answer: To provide access to health care for low-income seniors.
●● What is the fundamental guarantee of the Medicare program?
Answer: It guarantees older Americans access to health care regardless
of their financial circumstances.
●● Which agency administers the Medicare program?
Answer: The Centers for Medicare and Medicaid Services (CMS).
●● What does Medicare Part A cover?
Answer: Medical hospital insurance.
●● What does Medicare Part B cover?
Answer: Supplemental medical insurance.
●● What is Medicare Part C?
Answer: Medicare Advantage.
,●● What does Medicare Part D provide?
Answer: Outpatient prescription drug insurance.
●● How is Medicare primarily funded?
Answer: Through payroll taxes paid by working Americans and their
employers, along with Social Security taxes.
●● What is the primary risk for individuals during long hospital stays
under Medicare?
Answer: They are subjected to larger percentages of the total bill,
creating a risk of catastrophic financial loss.
●● What is the limitation of Medigap supplemental insurance policies?
Answer: They cover up-front costs and some non-covered expenses but
do not protect against catastrophic financial risk.
●● What is the role of Medicare Administrative Contractors (MACs)?
Answer: They process all claims for those participating in the traditional
fee-for-service (FFS) option, including enrollment, payment, and dispute
resolution.
●● Why is Medicare considered more efficient than private insurance
regarding administrative costs?
, Answer: Because of the larger claim size processed by the program.
●● What is the function of the Medicare Board of Trustees?
Answer: To manage the hospital insurance trust fund and oversee the
long-term solvency of the program.
●● What is the 'pay-as-you-go' funding structure of Medicare?
Answer: A system where current older generations rely on the next
generation of workers to pay for their benefits, with no permanent
funding for individuals to invest for their own future spending.
●● When is the hospital insurance trust fund projected to become
insolvent?
Answer: In 2026.
●● What happens to Medicare benefits if the trust fund becomes
insolvent after 2026?
Answer: It is estimated that the fund will only be able to pay 90 percent
of the promised benefits.
●● What was the primary impact of the Affordable Care Act (ACA) on
Medicare?
Answer: It cut more than $740 billion from Medicare spending to help
pay for Medicaid expansion and exchange subsidies.
