MHA 707 EXAM C Questions and Answers |
2026 Complete Prep | A+ Verified
• Moral Hazard. CORRECT ANSWER: When the act of insuring an event increases the
likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
• 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 Parentages 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
Fixed Price
Capitation
Value
2026 Complete Prep | A+ Verified
• Moral Hazard. CORRECT ANSWER: When the act of insuring an event increases the
likelihood that the event will happen
behaving different when you know someone is taking the risk (induced demand)
• 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 Parentages 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
Fixed Price
Capitation
Value
