1|Page
CEBS GBA EXAM 2 2025| BRAND NEW ACTUAL EXAM
WITH 100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE YOUR
GRADES.
What is the basic assumption underlying concept of a free market and how is it
challenged by the theory of "bounded rationality?" (Mod 1.1) - (answers)Rational
customers will make informed decisions about value, quality and price, while
producers who meet consumer's demands will be rewarded with market share
and profit.
What are economic benefits of a free market? (Mod 1.1) - (answers)If an
individual does not like their provider or health plan, the should be able to "vote
with their feet" and select other options. This choice empowers customers,
regulates producers and drives efficiency.
Describe several ways the US Healthcare market does not function like a normal
market. (Mod 1.1) - (answers)Healthcare market has significant asymmetry in
information between consumers, providers and insurers. Moral hazard is a
problem because the marginal cost of covered care is zero, causing some to over
consume medical care.
List several recent initiatives in the US that purport (to claim, often falsely) to use
market forces to increase efficiency in the healthcare system. (Mod 1.1) -
(answers)1) Employers are offering more HDHPs with some as high as $10,000.
2) ACA is creating marketplaces that employ a form of managed competition
where standardized health plans compete on cost and quality.
,2|Page
3) Public Medicaid and Medicare programs are moving towards requiring or
making choices available for managed care products that structure care within
provider networks.
Indicate the approximate percentages of the population covered by major health
programs. (Mod 1.2) - (answers)Largest portion of Americans (48%) receive health
insurance through an Employer, 16% through Medicaid, 15% through Medicare,
6% purchase insurance on their own
How did ACA change Medicare? (Mod 1.2) - (answers)ACA expanded Medicare's
wellness and prevention benefits, improved prescription drug coverage and
financed experiments to control health care costs by testing alternative payment
methods and delivery systems.
How did ACA change eligibility for Medicaid benefits? (Mod 1.2) - (answers)ACA
shifted program eligibility from category based (ex: single parents with
dependents or people w/disabilities) to an income-based standard.
how has the ACA affected the number of people who are enrolled in Medicaid?
(Mod 1.2) - (answers)Medicaid once covered fewer than half of low-income
Americans, but now ACA Medcaid expansion has been steadily increasing
enrollment, with largest increase in the states who are participating.
Explain significance of US Supreme Court case National Federation of
Independent Business v Sebelius in 2012 (Mod 1.2) - (answers)ACA sought to
expand Medicaid coverage to all individuals and families with incomes below
138% of the poverty level. US (first time) would have had a solid safety net of
insurance coverage for all lower income citizens. In the case, the court rules states
,3|Page
could choose not to expand (and Medicaid funding would not be withheld). By Jan
2015, 25 states chose not to expand.
How has ACA affected number of uninsured Americans? (Mod 1.2) -
(answers)Prior to ACA, 16.3% or 49.9 million Americans were uninsured. By 2014,
this number reduced to 13% and by the first quarter of 2016 to 8.6%.
Describe private health insurance coverage with regard to a) size of firm
b) HDHPs with Medical Savings Accounts
c) variability of coverage by states (Mod 1.2) - (answers)a) 98% of employers with
200+ EE's offer health insurance but fewer than 45% of firms with 3-9 EE's do so.
Larger employers offer more choice of health plans than smaller employers; small
employers tend to offer POS plans that require higher EE cost sharing to go
outside network.
b) In 2006, HDHPs with medical savings accounts accounted for 4% of ER-
sponsored market, but by 2012, accounted for over 20%. In 2016, this rose to
almost 30%.
c) Range of ER-based options and quality of options available vary widely by state.
The percentage of the population covered by private insurance varies as well as
the options for different types of coverage.
What are the basic differences between the four medal categories of ACA health
plans? (Mod 1.3) - (answers)Bronze, Silver, Gold and Platinum plans all have same
actuarial value. However, they differ in regard to amount of deductibles,
coinsurance, other out of pocket costs and premiums. Bronze plan has lowest
premium but most out of pocket costs. Platinum plan has lowest out of pocket
cost, but highest premium.
, 4|Page
Why is the Silver Plan the most popular choice among ACA plans? (Mod 1.3) -
(answers)Majority who enroll are eligible for federal tax credit subsidies tied to a
Silver level plan. People may still select a higher cost Gold or Platinum plan, but
will have to pay higher premiums. Cost-sharing subsidies to lower out of pocket
costs are only available to Silver plans.
Do users of ACA marketplace exchanges have many choices? (Mod 1.3) -
(answers)Ton of choices and options (ex: in TX, 15 carriers offered an average of
31 plans per county).
Does evidence indicate that consumers choose the most cost-effective medical
plan in the marketplace? (Mod 1.3) - (answers)people on average choose plan
10% more expensive than what would be optimal. Other studies suggest limiting
variation in plan designs would be choices more comprehensible (able to
understand).
What is the provision in Part D Medicare law that gives a significant benefit to
pharmaceutical companies? (Mod 1.4) - (answers)Part D Medicare Law prohibits
the government from using its purchasing power to negotiate widespread
discounts with drug plans.
Do Medicare Part D beneficiaries have many choices and does the evidence
suggest they choose the most cost-effective plans? (Mod 1.4) - (answers)Provide
numerous choices (ex MA has 27 standalone, TX has 32). Most people do not
select the optimal plan or take advantage of open enrollment periods to obtain a
CEBS GBA EXAM 2 2025| BRAND NEW ACTUAL EXAM
WITH 100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE YOUR
GRADES.
What is the basic assumption underlying concept of a free market and how is it
challenged by the theory of "bounded rationality?" (Mod 1.1) - (answers)Rational
customers will make informed decisions about value, quality and price, while
producers who meet consumer's demands will be rewarded with market share
and profit.
What are economic benefits of a free market? (Mod 1.1) - (answers)If an
individual does not like their provider or health plan, the should be able to "vote
with their feet" and select other options. This choice empowers customers,
regulates producers and drives efficiency.
Describe several ways the US Healthcare market does not function like a normal
market. (Mod 1.1) - (answers)Healthcare market has significant asymmetry in
information between consumers, providers and insurers. Moral hazard is a
problem because the marginal cost of covered care is zero, causing some to over
consume medical care.
List several recent initiatives in the US that purport (to claim, often falsely) to use
market forces to increase efficiency in the healthcare system. (Mod 1.1) -
(answers)1) Employers are offering more HDHPs with some as high as $10,000.
2) ACA is creating marketplaces that employ a form of managed competition
where standardized health plans compete on cost and quality.
,2|Page
3) Public Medicaid and Medicare programs are moving towards requiring or
making choices available for managed care products that structure care within
provider networks.
Indicate the approximate percentages of the population covered by major health
programs. (Mod 1.2) - (answers)Largest portion of Americans (48%) receive health
insurance through an Employer, 16% through Medicaid, 15% through Medicare,
6% purchase insurance on their own
How did ACA change Medicare? (Mod 1.2) - (answers)ACA expanded Medicare's
wellness and prevention benefits, improved prescription drug coverage and
financed experiments to control health care costs by testing alternative payment
methods and delivery systems.
How did ACA change eligibility for Medicaid benefits? (Mod 1.2) - (answers)ACA
shifted program eligibility from category based (ex: single parents with
dependents or people w/disabilities) to an income-based standard.
how has the ACA affected the number of people who are enrolled in Medicaid?
(Mod 1.2) - (answers)Medicaid once covered fewer than half of low-income
Americans, but now ACA Medcaid expansion has been steadily increasing
enrollment, with largest increase in the states who are participating.
Explain significance of US Supreme Court case National Federation of
Independent Business v Sebelius in 2012 (Mod 1.2) - (answers)ACA sought to
expand Medicaid coverage to all individuals and families with incomes below
138% of the poverty level. US (first time) would have had a solid safety net of
insurance coverage for all lower income citizens. In the case, the court rules states
,3|Page
could choose not to expand (and Medicaid funding would not be withheld). By Jan
2015, 25 states chose not to expand.
How has ACA affected number of uninsured Americans? (Mod 1.2) -
(answers)Prior to ACA, 16.3% or 49.9 million Americans were uninsured. By 2014,
this number reduced to 13% and by the first quarter of 2016 to 8.6%.
Describe private health insurance coverage with regard to a) size of firm
b) HDHPs with Medical Savings Accounts
c) variability of coverage by states (Mod 1.2) - (answers)a) 98% of employers with
200+ EE's offer health insurance but fewer than 45% of firms with 3-9 EE's do so.
Larger employers offer more choice of health plans than smaller employers; small
employers tend to offer POS plans that require higher EE cost sharing to go
outside network.
b) In 2006, HDHPs with medical savings accounts accounted for 4% of ER-
sponsored market, but by 2012, accounted for over 20%. In 2016, this rose to
almost 30%.
c) Range of ER-based options and quality of options available vary widely by state.
The percentage of the population covered by private insurance varies as well as
the options for different types of coverage.
What are the basic differences between the four medal categories of ACA health
plans? (Mod 1.3) - (answers)Bronze, Silver, Gold and Platinum plans all have same
actuarial value. However, they differ in regard to amount of deductibles,
coinsurance, other out of pocket costs and premiums. Bronze plan has lowest
premium but most out of pocket costs. Platinum plan has lowest out of pocket
cost, but highest premium.
, 4|Page
Why is the Silver Plan the most popular choice among ACA plans? (Mod 1.3) -
(answers)Majority who enroll are eligible for federal tax credit subsidies tied to a
Silver level plan. People may still select a higher cost Gold or Platinum plan, but
will have to pay higher premiums. Cost-sharing subsidies to lower out of pocket
costs are only available to Silver plans.
Do users of ACA marketplace exchanges have many choices? (Mod 1.3) -
(answers)Ton of choices and options (ex: in TX, 15 carriers offered an average of
31 plans per county).
Does evidence indicate that consumers choose the most cost-effective medical
plan in the marketplace? (Mod 1.3) - (answers)people on average choose plan
10% more expensive than what would be optimal. Other studies suggest limiting
variation in plan designs would be choices more comprehensible (able to
understand).
What is the provision in Part D Medicare law that gives a significant benefit to
pharmaceutical companies? (Mod 1.4) - (answers)Part D Medicare Law prohibits
the government from using its purchasing power to negotiate widespread
discounts with drug plans.
Do Medicare Part D beneficiaries have many choices and does the evidence
suggest they choose the most cost-effective plans? (Mod 1.4) - (answers)Provide
numerous choices (ex MA has 27 standalone, TX has 32). Most people do not
select the optimal plan or take advantage of open enrollment periods to obtain a
