Question;Question;1;1.;Offering insurance coverage through an;optional rider would likely cause the most problems with adverse selection for;which condition?;Answer;Prenatal care for pregnant women;Stress reduction counseling for employees;HIV/AIDS;treatment;Preventive dental examinations;Policy covering accidents for children in daycare;1 points;Question;2;1.;Bill's health insurance covers;preventive and cosmetic dental services, including orthodontic care, for;employees and their family members. Bill is willing to pay $30 per month for;over-the-counter teeth-whitening strips at the local pharmacy. With his co-pay;he learns he can pay $25 per month and receive;professional teeth-whitening services at his dentist. He chooses to go to;the dentist for the service, which costs the insurance company $75 per month.;This is an example of adverse;selection. True or false?;Answer;True;False;1 points;Question;3;1.;An actuarial assistant at an HMO;presents graphs and charts of the number of colonoscopies performed per 1,000;patients by each doctor in its plan. This is an example of;Answer;Preadmission testing.;Concurrent review.;Retrospective review.;Discharge planning.;Database profiling.;1 points;Question;4;1.;Catastrophic medical expenses are;large, infrequent, and unpredictable. Risk aversion explains why people buy;insurance which covers such catastrophic events.;Answer;True;False;1 points;Question;5;1.;Health economists observe individuals;willingness to pay not only by observing cash transactions, but also by;observing patients' time spent waiting and/or pain endured to obtain medical;services. Examples of observable, non-cash prices paid by patients include all;of the following,except;Answer;A caretaker waits 9 months for a family member to;receive nursing home care.;A patient undergoes experimental cancer vaccine;to arrest the growth of a tumor.;A patient pays another patient $50 to trade;places in the queue at the free clinic.;An elderly patient waits 8 hours to see a doctor;for free at a famous eye clinic.;A morbidly obese patient must undergo 6;months of nutrition counseling prior to undergoing surgery to induce;weight loss.;1 points;Question;6;1.;The Law of Large Numbers explains why;it is unlikely that the actuarially fair premium for an insurance policy will;be the same for a small start-up firm as it will be for a large employer such;as a university.;Answer;True;False;1 points;Question;7;1.;The demand for cosmetic surgery is more;elastic than the demand for Botox treatments. True or false?;Answer;True;False;1 points;Question;8;1.;If a dentist decides to lower the price;of teeth-whitening treatments, total sales (revenues) for treatments will go up;if;Answer;Excess supply for teeth-whitening services;exists.;Price elasticity is less than one.;Price elasticity is greater than one.;Excess demand for teeth-whitening services;exists.;Price elasticity of demand has changed.;1 points;Question;9;1.;Health Savings Accounts may contribute;to risk-sharing problems as younger, healthier, better-educated;individuals use HSAs as savings accounts. True or false?;Answer;True;False;1 points;Question;10;1.;Traditional fee-for-service (FFS);payment plans of Medicare and Medicaid in the 1970s contributed to cost;escalation because;Answer;Physicians had incentive to provide more;services.;Patients had incentive to demand more care.;Insurance companies had no incentive to contains;costs.;Government had no system-wide tools to reduce;costs.;All of the above.
Paper#58533 | Written in 18-Jul-2015Price : $22