Question 1

A likely outcome of a social insurance program is that ____.

Accepted Answer

A)  a small proportion of the insured account for a large proportion of the expenses
B)  each person pays in accordance with the quality of their risk
C)  elimination of pre-existing conditions assures actuarial fairness
D)  medical underwriting reduces potential subsidization A

Question 2

Commercial insurers assert that actuarial fairness requires them to ____.

Accepted Answer

A)  closely review individual medical records
B)  spread risk across groups
C)  insure regardless of risk
D)  remain blind to individual health status A

Question 3

The Genetic Information Nondiscrimination Act of 2008 allows insurers to ____.

Accepted Answer

A)  deny coverage based on the presence of a genetic disease
B)  increase premiums based on genetic information
C)  buy genetic information about individuals who want to enroll in a group plan
D)  request genetic information about individuals who want to enroll in a group plan A

Question 4

Commercial insurance is based on what concept?

Accepted Answer

A)  classification of risk
B)  assumption of risk
C)  principle of solidarity
D)  cross-subsidization

Question 5

The CEO of Community Hospital plans to reduce the hours worked by employees in three departments: dietary, housekeeping, and maintenance. The most likely result of this action is a(n)____.

Accepted Answer

A)  increase in Community Hospital's efficiency
B)  decrease in the community's efficiency
C)  decrease in Community Hospital's efficiency
D)  lack of any effect in the community's efficiency

Question 6

In order to convince smaller drug manufacturers to develop and produce generic versions of MDR-TB drugs, Doctors Farmer and Kim first sought to increase ____ by having the drugs listed on the World Health Organization's essential drugs list.

Accepted Answer

A)  demand
B)  cost
C)  benefits
D)  supply

Question 7

The ideal of the solidarity principle is that we should strive to distribute medical care according to ____.

Accepted Answer

A)  medical need
B)  ability to pay
C)  lowest quality of risk
D)  highest level of consumption

Question 8

Which statement best describes the author's view of efficiency?

Accepted Answer

A)  Efficiency reflects a particular point of view.
B)  Efficiency is an empirically measurable fact.
C)  Efficiency represents the highest ratio of costs to benefits.
D)  Efficiency is a universal good.

Question 9

Performing all cardiac catheterizations in the region at one hospital represents an example of the ____.

Accepted Answer

A)  boundary problem
B)  adverse selection problem
C)  commons problem
D)  free rider problem

Question 10

Which statement best describes the Affordable Care Act (ACA)?

Accepted Answer

A)  The ACA permits pricing according to age and tobacco use.
B)  The ACA has eliminated the use of the actuarial fairness principle.
C)  The ACA prohibits pricing according to age and tobacco use.
D)  The ACA is the first program based entirely on the solidarity principle.

Question 11

There is a risk that efficiency calculations over-emphasize ____.

Accepted Answer

A)  easily measurable variables
B)  inputs
C)  outputs
D)  subjective variables

Question 12

The efforts of Doctors Paul Farmer and Jim Kim to treat MDR-TB in poor countries demonstrated that the "cost" in cost-benefit and cost-effectiveness analysis is a(n)____.

Accepted Answer

A)  reflection of the power relationships between buyers and sellers
B)  objective measure
C)  outcome of the global patent law system
D)  fixed and unchangeable measure

Question 13

The first battles over insurance companies' use of actuarial fairness to charge higher rates to certain groups concerned ____.

Accepted Answer

A)  race
B)  gender
C)  specific genetic diseases
D)  sexual orientation

Question 14

If doctor productivity is measured as number of patients treated per hour, the most efficient doctor is the one who ____.

Accepted Answer

A)  spends the least time with patients
B)  provides the best quality care for the time spent
C)  spends the most time with patients
D)  receives the highest ratings from patients

Question 15

In the 1980s, health insurers' advertising campaigns emphasized ____.

Accepted Answer

A)  bearing your own risk
B)  universal coverage
C)  pre-existing conditions
D)  solidarity

Exam 1: Values in Health Policy: Understanding Fairness and Efficiency