Which was a major change after Medicare began a prescription drug benefit?

Correct Answer: D

Rationale: The correct answer is D: Use of drugs and their cost immediately increased. This is because when Medicare introduced a prescription drug benefit, it provided coverage for medications that were previously not covered, leading to an increase in the utilization of prescription drugs by beneficiaries. This increase in demand for medications directly resulted in an increase in both the volume and cost of drugs being prescribed and purchased. Option A is incorrect because the implementation of a prescription drug benefit under Medicare would likely lead to an increase in the number of prescriptions ordered by physicians, not a decrease. Option B is incorrect because the introduction of a new benefit such as prescription drug coverage would likely impact patient care outcomes, especially for those who previously could not afford their medications. Option C is incorrect as it does not reflect the immediate impact of the prescription drug benefit on drug expenditures. In an educational context, understanding the implications of policy changes on the healthcare system is crucial for healthcare professionals and policymakers. It is important to recognize that introducing new benefits or services can have significant effects on utilization, costs, and outcomes within the healthcare system. This knowledge is essential for making informed decisions about healthcare policy, resource allocation, and delivery of care to meet the future economic needs of the US healthcare system.

Correct Answer: A

Rationale: The correct answer is A) Those that are consistent with societal priorities, such as Healthy People 2020. This is because federal funding for health care projects is typically aligned with overarching national health objectives and priorities. Healthy People 2020 is a set of national health goals and objectives established by the federal government to guide health promotion and disease prevention efforts in the United States. Projects that align with these priorities are more likely to receive special funding as they contribute to the larger health improvement goals of the country. Option B) Those that are supported by legislators, may not always reflect the broader societal health priorities and could be influenced by political motivations rather than public health needs. Option C) Those that are written by health care organizations that have special needs, might focus on specific organizational interests rather than addressing the larger population health needs. Option D) Those that are consistent with the state's long-term health goals, while important at the state level, may not always align with the national health priorities set forth by initiatives like Healthy People 2020. Educationally, it is important for students to understand the process by which federal funding for health care projects is allocated and the significance of aligning with national health priorities. This knowledge helps future healthcare professionals and policymakers make informed decisions and advocate for projects that contribute to improving the overall health of the population. Understanding the role of initiatives like Healthy People 2020 in shaping health policy can lead to more effective and impactful interventions in the healthcare system.

Correct Answer: C

Rationale: Philanthropic funding, whose services are typically research or disease oriented, pays a limited amount of health care. Services are limited to the specific disease or population of interest. Informational and research activities constitute the majority of services provided although some give direct care or meet ancillary needs such as housing, transportation, or wigs. Legislative lobbying and special services are not the primary health care services provided by philanthropic groups.

Correct Answer: B

Rationale: In an effort to compete with HMOs, physicians and hospitals organized the independent practice model, which provided services to enrollees of one insurance company. This model evolved into the PPO, which offered services at a reduced rate in exchange for a guaranteed increase in consumers. Physicians did not become directly employed by insurance companies, set up private practices with colleagues, or decide to strike in order to compete with the HMOs.

Correct Answer: A

Rationale: Hospitals developed cost shifting to supplement losses caused by Medicare funding. Because private insurance reimbursements were cost based, hospitals included the loss in their total costs; therefore private insurance paid for covering care to both their enrollees and Medicare patients. The implementation of DRGs did not cause hospitals to decrease nursing staff, lobby politicians to increase Medicare reimbursement, or refuse to accept Medicare patients.