MHA 707 Exam C (CH 6,7,8 MO) – Questions & Answers Moral Hazard ✔️Ans - When the act of insuring an event increases the likelihood that the event will happen Behaving different when you know someone is taking the risk (induced demand) Adverse Selection ✔️Ans - the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction The sicker people likely want more insurance, compared to those who are healthy Pooling of Risk ✔️Ans - Allows individuals to share risk, i.e., insurance companies National Health Expenditure Accounts (NHEA) ✔️Ans - Provides official estimates of health care spending in the US. It measures health care consumption and health care investment.
NHEA Benefits ✔️Ans - Comprehensive: includes all major components
of health care system in unified, mutually exclusive, and exhaustive structure
Multidimensional: encompasses expenditures as well as payers
Consistent: applies a common set of definitions that permits longitudinal
comparisons Published by DHHS
Accounts in the NHEA ✔️Ans - National Health Expenditures: NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC 1 / 2
National Health Expenditures: NHE ✔️Ans - all health care consumption and investments in medical structures and equipment and noncommercial health services and biomedical research NHE - HCE = Amount of investment in the medical sector of economy (buildings, research, equipment)
Health Consumption Expenditures: HCE ✔️Ans - a subset of NHE,
includes personal health care spending, government administration and net cost of private health insurance and public health activities Personal Health Care: PHC ✔️Ans - subset of HCE, including all medical goods and service that's used to diagnose, treat, and prevent health problems of a specific person How much NHE spent on Health Care? ✔️Ans - $3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
Largest contributors to the Personal Health Care (PHC) ✔️Ans - hospitalization, physician services, Rx, other health care goods and services
What accounted for the largest share of NHE? ✔️Ans - Hospital Care:
33% of spending
Professional Services: 20% doctors NHE
Retail Rx: 10.5%
Three Categories of PHC increased as a share of NHE ✔️Ans - Health
Residential and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
Chronic Disease and Mental Health Diseases in NHE (percentage) ✔️Ans
- 90%
Among the top 5% of users account for about half of the spending
- / 2