1. During which Presidential administration were the Medicare and Medicaid programs created? a. Franklin D. Roosevelt b. John F. Kennedy c. Lyndon B. Johnson d. Richard M. Nixon
2. Which types of firms are excluded from the ACA’s employer mandate? a. non-profit firms b. for-profit firms c. small employers d. large employers
3. The ACA mandates that employers that offer dependent coverage must cover children up to what age? a. 18 b. 21 c. 26 e. 30
4. In Pauly’s model of spousal insurance there is a transfer of wealth from a. married dual-income couples to singles b. married single-income couple to married dual-income couples c. singles to married dual-income couples d. singles to married single-income couples
5. Over the past decade which type of insurance product has experienced the greatest level of growth? a. High Deductible Health Plans (HDHPs) b. Preferred Provider Organizations (PPOs) c. Indemnity Plans d. Health Maintenance Organizations (HMOs)
6. If James is risk averse he will: a. purchase insurance at any price b. purchase insurance, but only if it actuarially fairly priced c. purchase insurance at prices above the actuarially fair price d. not purchase insurance at any price
7. Under Medicare’s Inpatient Prospective Payment System hospitals receive: a. a fixed payment for all patients b. a fixed payment based on the patient’s primary diagnosis c. a fixed payment based on the patient’s primary diagnosis and treatment d. a payment based on the actual hospital specific costs of treating each patient
8. Medicaid expansion under the Affordable Care Act increases coverage for which group? a. pregnant women b. children c. non-elderly adults d. elderly 8
9. Which of the following statements characterizes the contribution of disabled adults and the elderly to total Medicaid enrollment and expenditures? a. Elderly and disabled account for 1/3 of enrollment and expenditures b. Elderly and disabled account for 1/3 of enrollment, but 2/3 of expenditures c. Elderly and disabled account for 2/3 of enrollment and expenditures d. Elderly and disabled account for 2/3 of enrollment but 1/3 of expenditures
10. The tax deduction for employer-based insurance premiums provides a larger benefit to what type of workers? a. men b. women c. higher income workers d. lower income workers
11. Under the new federal insurance market regulations governing exchange plans under the ACA, which of the following factors can still be used to determine premiums? a. age b. gender c. health expenditures in prior year d. history of cancer
12. Which of the following is the principal strength of the employer-based insurance system? a. low administrative costs b. portability of coverage c. mechanism to pool risk d. broad choice of plans
13. What race/ethnic group has the highest rate of uninsurance in the United States? a. white non-Hispanics b. black non-Hispanics c. Asians d. Hispanics
14. Financial penalties for failure to enroll in Medicare Part D plans are designed to combat: a. moral hazard b. adverse selection c. arbitrage d. risk aversion
15. According to Malcolm Gladwell’s article “High Prices” the blame for rising pharmaceutical prices rests with: a. pharmaceutical companies b. insurance companies c. physicians d. all of the above
16. In the Medicare Part D “doughnut hole” beneficiaries face a coinsurance rate of: a. 100 percent b. 50 percent c. 25 percent d. 0 percent