MHA 707 Exam C Questions and
Answers A+ Graded (2025)
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
Answers A+ Graded (2025)
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
