HCM 416 CHAPTER 2 QUIZ AND ANSWERS VERIFIED

HCM 416 CHAPTER 2 QUIZ AND ANSWERS VERIFIED


For insurance to "work," it must have these basic characteristics. Select all

answers that apply.



a)Nice office building

b) Payment only for random (unforeseen and unexpected) losses

c) Risk transfer

d) Pooling of losses

B,C, & D

*Payment only for random (unforeseen and unexpected) losses

*Risk transfer

*Pooling of losses

Which one of these answers, is NOT a problem that arises when dealing with

insurance?



a) Adverse selection

b) Indemnification

c) Moral Hazard

b) Indemification

Select the best choice.



Under the ACA, insurers are required to use ....

, a) Community rating

b) Neighborhood ratings

c) Experience rating

a) Community rating

Please match the Medicare major coverage (Part A, B, C, D) to the best

explanation for them.



Medicare Part A

Medicare Part B

Medicare Part C

Medicare Part D

Part A - Covers hospital and some skilled nursing home coverage



Part B - Covers Physicians Services, ambulatory surgical services, outpatient services,

& certain other misc. services.



Part C - Is often called Medicare advantage.



Part D - Covers prescription drugs.

Under the broad category of fee-for-service (FFS), what are the three main types

of fee-for-service methodologies that were discussed in class? Select all answers

that apply.