MHA 707 EXAM C Questions and Answers |
2026 Updated Practice Questions | Grade
A+
• Adverse Selection. CORRECT ANSWER: the situation in which one party to a
transaction takes advantage of knowing more than the other party to the transaction
the sicker people likely want more insurance, compared to those who are healthy
• Pooling of Risk. CORRECT ANSWER: Allows individuals to share risk, i.e.,
insurance companies
• National Health Expenditure Accounts (NHEA). CORRECT ANSWER: Provides
official estimates of health care spending in the US. It measures health care
consumption and health care investment.
• NHEA Benefits. CORRECT ANSWER: Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and exhaustive
structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal
comparisons
Published by DHHS
• Accounts in the NHEA. CORRECT ANSWER: National Health Expenditures:
NHE
,Health Consumption Expenditures: HCE
Personal Health Care: PHC
• National Health Expenditures: NHE. CORRECT ANSWER: all health care
consumption and investments in medical structures and equipment and
noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings,
research, equipment)
• Health Consumption Expenditures: HCE. CORRECT ANSWER: a subset of
NHE, includes personal health care spending, government administration and net
cost of private health insurance and public health activities
• Personal Health Care: PHC. CORRECT ANSWER: subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent health
problems of a specific person
• How much NHE spent on Health Care?. CORRECT ANSWER: $3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
• Largest contributors to the Personal Health Care (PHC). CORRECT ANSWER:
hospitalization, physician services, Rx, other health care goods and services
• What accounted for the largest share of NHE?. CORRECT ANSWER: Hospital
Care: 33% of spending
, Professional Services: 20% doctors NHE
Retail Rx: 10.5%
• Three Categories of PHC increased as a share of NHE. CORRECT ANSWER:
Health Residential and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
• Chronic Disease and Mental Health Diseases in NHE (percentage). CORRECT
ANSWER: 90%
Among the top 5% of users account for about half of the spending
• Medical Conditions and Percentage on Americans. CORRECT ANSWER: 90%
of Americans have 1 risk factor, 52% have 2 or more highest proportion in
impoverished and racial/ethnic minorities
• Americans Stat on Health Ins Coverage. CORRECT ANSWER: 92% of the US
population have some sort of ins (8% or 26.4 M uninsured)
• Cost/Cost Plus. CORRECT ANSWER: how hospitals/providers describe
payments received for services they have already provided. The organization tracks
all the costs associated with each customer and then asks to be paid that amount.
Contracts specific that the organization will be reimbursed for actual cost plus an
additional percentage of cost (includes built in profit)
• How Money is Paid to Health Care Providers. CORRECT ANSWER: Cost/Cost
Plus
Time and Materials
Fee for Service
2026 Updated Practice Questions | Grade
A+
• Adverse Selection. CORRECT ANSWER: the situation in which one party to a
transaction takes advantage of knowing more than the other party to the transaction
the sicker people likely want more insurance, compared to those who are healthy
• Pooling of Risk. CORRECT ANSWER: Allows individuals to share risk, i.e.,
insurance companies
• National Health Expenditure Accounts (NHEA). CORRECT ANSWER: Provides
official estimates of health care spending in the US. It measures health care
consumption and health care investment.
• NHEA Benefits. CORRECT ANSWER: Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and exhaustive
structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal
comparisons
Published by DHHS
• Accounts in the NHEA. CORRECT ANSWER: National Health Expenditures:
NHE
,Health Consumption Expenditures: HCE
Personal Health Care: PHC
• National Health Expenditures: NHE. CORRECT ANSWER: all health care
consumption and investments in medical structures and equipment and
noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy (buildings,
research, equipment)
• Health Consumption Expenditures: HCE. CORRECT ANSWER: a subset of
NHE, includes personal health care spending, government administration and net
cost of private health insurance and public health activities
• Personal Health Care: PHC. CORRECT ANSWER: subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent health
problems of a specific person
• How much NHE spent on Health Care?. CORRECT ANSWER: $3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
• Largest contributors to the Personal Health Care (PHC). CORRECT ANSWER:
hospitalization, physician services, Rx, other health care goods and services
• What accounted for the largest share of NHE?. CORRECT ANSWER: Hospital
Care: 33% of spending
, Professional Services: 20% doctors NHE
Retail Rx: 10.5%
• Three Categories of PHC increased as a share of NHE. CORRECT ANSWER:
Health Residential and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
• Chronic Disease and Mental Health Diseases in NHE (percentage). CORRECT
ANSWER: 90%
Among the top 5% of users account for about half of the spending
• Medical Conditions and Percentage on Americans. CORRECT ANSWER: 90%
of Americans have 1 risk factor, 52% have 2 or more highest proportion in
impoverished and racial/ethnic minorities
• Americans Stat on Health Ins Coverage. CORRECT ANSWER: 92% of the US
population have some sort of ins (8% or 26.4 M uninsured)
• Cost/Cost Plus. CORRECT ANSWER: how hospitals/providers describe
payments received for services they have already provided. The organization tracks
all the costs associated with each customer and then asks to be paid that amount.
Contracts specific that the organization will be reimbursed for actual cost plus an
additional percentage of cost (includes built in profit)
• How Money is Paid to Health Care Providers. CORRECT ANSWER: Cost/Cost
Plus
Time and Materials
Fee for Service
