1. ch01-001
What does Medicare Part C do?
a. Provides the aged with home health care
b. Provides the aged with prescription drugs
c. Enables low-income aged to participate in Medicaid
*d. Provides a voluntary managed care option for the
aged
2. ch01-002
How is Medicaid administered?
*a. By each state
b. By the federal government
c. Jointly by each state and the federal government
d. By insurers under contract with the federal
government
3. ch01-003
How is Medicaid financed?
a. It is financed entirely by the federal government.
b. It is financed entirely by the state.
c. States receive the same percentage of federal
support.
*d. States with lower per capita incomes receive a
greater percentage of federal support.
4. ch01-004
The Affordable Care Act
a. did not make any changes to the Medicaid program.
*b. increased Medicaid eligibility.
c. reduced funding for Medicaid.
d. required adult Medicaid recipients to buy their
insurance on health insurance exchanges.
5. ch01-005
Which of the following statements describes how the
financing of US healthcare has changed over time?
a. The federal government now finances 76 percent of
total healthcare expenditures.
*b. Out-of-pocket payments represent less than 15
percent of total healthcare expenditures.
c. Expenditures for prescription and over-the-counter
drugs are as great as hospital expenditures.
d. None of the above
6. ch01-006
In the past ten years, medical expenditures have risen more
slowly primarily because of
a. the introduction of the Affordable Care Act.
b. stringent Medicare price controls on hospitals and
physicians.
c. state regulation of health insurance premiums.
*d. a severe recession, greater number of uninsured
people, and fewer employees with employer-paid health
insurance.
7. ch01-007
In coming years, medical expenditures are expected to rise
at a faster rate because of
a. the growing economy.
b. increased demand as a result of the Affordable Care
Act.
c. the development of new technology and expensive
specialty drugs.
*d. All of the above
8. ch01-008
The growth in private health insurance was stimulated by
a. federal and state subsidies.
*b. higher per capita income and tax-exempt employerpaid health insurance.
c. the growth of private managed care organizations.
d. federal and state regulatory policies.
9. ch01-009
An effect of government regulating physician-fee increases
to reduce rising Medicare physician expenditures was that
a. physician participation rates in Medicare declined.
b. physician participation rates in Medicare
increased.
c. access to care for Medicare patients declined.
*d. A and C
10. ch01-010
Managed care relies on which of the following to reduce
enrollees’ premiums?
a. Dramatically increasing enrollees’ out-of-pocket
expenses
*b. Having providers compete to join limited provider
networks
c. Increasing specialists’ fees to provide them with
an incentive to become more productive
d. B and C