The size of private health insurance premiums depends on…


The size of private health insurance premiums depends on all of the following except


b)expected utilization volume.

c)administrative costs.

d)profit margin.

e)number of carve-outs in a plan.

Increasing the physician supply can be achieved through all the following ways except

a)increasing the number of medical schools.

b)increasing the number of foreign medical school graduates allowed to train in the U.S.

c)changing immigration laws to allow more foreign physicians to practice in U.S.

d)early retirement of practicing physicians.

e)providing more federal and state funding to medical schools which increase enrollment.

A for-profit hospital is more likely to specialize in which one of the following services?


b)diagnostic radiology

c)prenatal care

d)emergency rooms

e)drug detoxification

Since the implementation of hospital payment by the DRG system,

a)cost shifting no longer occurs in hospitals.

b)use of RCCAC serves no purpose to the hospital’s management.

c)payment for hospital stays is based on a patient’s diagnosis at discharge.

d)payment for hospital stays is based on a patient’s diagnosis upon admittance to the hospital.

e)payment for hospital stays is less profitable to hospitals.

Over half of all hospital revenues are from

a)federal and state government programs.

b)private insurance.




. If it is shown that a newly formed large hospital, which was formed by the merger of two competing hospitals, charges more to uninsured patients than do smaller hospitals in the same market, for providing the same services,

a) the large hospital may have market power to do so.

b) the two small hospitals must be taking advantage of the economies of scale.

c) it is an example of price discrimination.

d) consumers’ welfare would not be affected.

e) the large hospital must be violating the antitrust laws.

43. A proposal to eliminate the tax deduction for charitable contributions would cause a negative impact on

a) physicians’ salaries.

b) the number of patients paying out of pocket for cosmetic surgery.

c) the number of self pay hospital patients.

d) hospitals budget for philanthropic donations.

e) nurses duties.

How does the law of diminishing marginal utility fit into an analysis of the demand for health care? Give some examples of decisions concerning health care where you personally are indifferent between getting medical care or doing without medical care.