Chapter 16

Question 1

Which of the following is NOT a characteristic of individuals most likely to be uninsured?

a. Unemployed
b. Hispanic
c. Foreign Born
d. Adults between 19-34 years old

Answer 1

a. Unemployed

Question 2

What was the emphasis of health insurance during its early history?

A. Remove financial barriers to hospital care
B. Protecting income
C. Increase the demand for healthcare services
D. Reimburse patients a portion of their medical expenses

Answer 2

B. Protecting income

Question 3

True or False
Healthcare costs for large employer groups can be unpredictable, so most
of these groups seek help from fiscal intermediaries (companies that provide underwriting or
administrative services.

Answer 3

False

Question 4

Describe the potential risk management problems faced by health insurance
programs and explain how insurance companies try to minimize these risks.
Which of the following is not a potential risk management problem?

A. Catastrophic hazards
B. Adverse selection
C. Coordination of benefits
D. Incentives to create losses and supplier-induced demand

Answer 4

C. Coordination of benefits

Question 5

The total reimbursement for a managed care prescription should cover all of the
following EXCEPT:

A. The cost of drug ingredients dispensed
B. The cost of dispensing
C. The net profit
D. The average wholesale price

Answer 5

D. The average wholesale price