Civics Polity · Economics

Healthcare Policy and Economics

2,501 Questions

Healthcare policy and economics covers medical insurance, healthcare financing, and system affordability. These topics assess your understanding of regulatory frameworks and patient care costs. They are frequently asked in civil services and state PSC examinations.

Healthcare regulationMedical insurance conceptsHealthcare financingDrug demand policiesHealthcare affordability

Healthcare Policy and Economics Questions

Multiple choice

Health claims servicing are outsourced by the insurers to the TPAs at a remuneration of __________ of the premium collected.

  1. five-six percent

  2. six-seven percent

  3. one-three percent

  4. eight-nine percent
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Third party administrators were introduced in the year 2001. They are licensed and regulated by IRDAI and mandated to provide health services. The minimum capital and other stipulations to qualify as a TPA are prescribed by IRDAI. Thus, health claims servicing are now outsourced by the insurers to the TPAs at a remuneration of five-six percent of the premium collected.

Multiple choice

Before treating a patient, the doctor looks

  1. at the health and height of the patient

  2. for the symptoms of diseases, if any

  3. at whether the person is rich or poor

  4. on whether there is enough equipment in the hospital or not

  5. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Yes, the doctor looks for the basis of symptoms shown by the patient, so that he could treat him accordingly.

Multiple choice

Two neighboring cities A and B have the same population features and a similar proportion of older people. City A has wider spaces, more spacious lawns and generally more health friendly environs. Yet the number of dentists, ophthalmologists and other health specialists in City A is much more than that in City B, and on the whole they are doing better business than their counterparts in City B. This indicates that people in City B maintain better health than people in City A.

Which of the following, if true, could be the most logical reason for the paradox?

  1. Some people in City B also visit specialists in City A.

  2. The health specialists in City A charge higher consultation fee.

  3. People in City B don't believe in home remedies.

  4. People in City A prefer prevention to cure.

  5. City A has a medical college, where dentists and ophthalmologists are trained.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Residents of city A prefer prevention to cure and keep visiting doctors for regular check-up.

Multiple choice

In 1995 health insurance earned revenue of $2 million. The revenue from health insurance doubled by the year 2005, and is projected to double again by 2011.

Each of the following, if true, may explain the rise in revenue except

  1. There are many companies now that offer health insurance.

  2. More and more persons are buying health insurance.

  3. Compared to 1995, the average person has at least 2.42 times the number of policies today.

  4. Health insurance cover offers several other benefits.

  5. In an effort to maintain and/or gain clientele, most companies have slashed the premium on health insurance cover.
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

This is the only option which gives a reason for health insurance revenues to go down. The reduction in premiums will counterbalance accretion due to increase in sales.

Multiple choice

Directions: Read the following passages and answer the question that follow: For all its acknowledged importance, the quality of medical care in India is not well understood. Many studies of the demand for medical services identify quality as a major determinant of facility selection and use, and that such use should contribute to improvements in health status. However, quality of care is not clearly defined beyond easily observable facility characteristics such as the availability of medicines or functioning equipment. What is less well understood, but has greater relevance for both the use and outcomes of services, is the quality of the actual advice given in clinical settings. Medicine can be bought over the counter and is not specific to particular facilities or providers. But good advice from a provider with knowledge and experience is a service that patients cannot easily obtain by themselves.

According to the passage, which of the following problems that have beset medical care in India has more pertinence?

  1. The inability of patients to obtain proper advice from some one who has both knowledge and experience.

  2. The difficulty faced by patients in getting good advice from an experienced doctor.

  3. Although acknowledged, the term quality of medical care in India is not well understood.

  4. Non-availability of medicines or of the functioning equipments is an easily observable characteristic of medical care in India.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (3) and (4) are ruled out. The passage deals with the difficulty faced in getting good advice and not the inability of patients to get good advice. Thus option (1) too is ruled out. Answer (2)

Multiple choice

Community health care services are provided by

  1. municipal corporation

  2. district administration

  3. civilians

  4. politicians
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Municipal corporations are responsible for public health services in urban areas, including sanitation, waste management, and basic healthcare facilities.

Multiple choice

Directions: The short passage below is followed by a question based on its content. Answer the question on the basis of what is stated or implied in the passage.

But this will require planning, coordination and monitoring by high-powered bodies right down to the district level. The onus for coordinating and implementing the National Plan of Action on Nutrition could be given to the women and child department but, if it is to be effective, it must be given ministerial status. Intersectoral committees will also be necessary at the State level and the district magistrates must be made accountable for the total social development of the area. The success of the adult literacy programme in certain districts has shown that wonders can be achieved by a DM. States should also formulate their own plans on the basis of the national policy to suit their special needs. Rajasthan has already done so by developing a hugely successful two-day village contact drive that informs people of the services available under ICDS, while Orissa is attempting to create grain banks. These are small beginnings but they could go a long way in bettering the nutritional levels of the children and in time of the population as a whole.

The passage is

  1. providing awareness regarding the despondent situation of nutrition in India

  2. a suggestion for an effective plan to be implemented for healthy nutritional levels

  3. telling about pathetic conditions of women and children today

  4. taking about the need for a DM

  5. emphasizing the need to emulate the adult literacy programmes
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 The passage basically talks about nutrition levels in India. Option (1) and (2) are close options that talks about nutrition levels in India. Between options (1) and (2), (2) discusses a plan for effective implementation for developing healthy nutritional levels by quoting examples of other successes of government programmes. This marks option (2) as correct.

Multiple choice

Ambulances may soon become a vehicle of past with the increasing incursion of helicopters in the area previously under domain of transferring of emergency cases safely and speedily from one place to another. Because of the utility of helicopters, many hospitals have decided to obtain them and use them instead of ambulances.

Which of the following, if true, would most seriously weaken the rationale behind the hospitals' plan to procure helicopters?

  1. Being very costly, not many hospitals can afford to use helicopters instead of ambulances.

  2. The space required for a helicopter to land and take off is not always available.

  3. There is lack of pilots trained to fly helicopters.

  4. The physical stress that helicopter places on fragile body of most of the patients is highly undesirable.

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Though options (1), (2) and (4) all give valid reasons for weakening the rationale been discussed above, but as given in the statement of question, option which most seriously weakens the given rationale should be taken as the correct answer. The main motive of ambulance as given in the passage is to speedily and safely transfer the patients, therefore if it affects the health of patient, then there is no benefit of using helicopter.

Multiple choice

People who can afford private specialized medical treatment have lower death rates than those who must depend on treatment at Government Hospitals. This explains why people who are in high-paying professions, such as businessmen and Corporate employees, have lower death rates than the people who have low-paying jobs or who are unemployed.

Which of the following, if true, would strengthen the explanation offered above?

  1. Many people with low-paying jobs have Government Insurance coverage and can afford private specialized medical treatment.

  2. Many doctors in expensive specialties cannot perform emergency medical procedures.

  3. The number of deaths among people who have low-paying jobs is far greater than the number of deaths among people who are in high-paying professions.

  4. The rates of disease for people who have low-paying jobs are no greater than for people who are in high-paying professions.

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This strengthens the argument by saying that the rate of disease is same in both kinds of people. So, the affordability makes all the difference in lowering the death rate.

Multiple choice

Community health care services are provided by _____.

  1. municipal corporation

  2. district administration

  3. civilians

  4. politicians
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The health of the community is the responsibility of the civil society which is appointed by the government. In both cities & towns, such a body called municipal corporation (MC) makes all efforts to give good surroundings, remove pollution, avoid garbage and also to provide vaccines for maintaining health of the public. Thus (1) is the correct answer. On the contrary district administration takes care of the politics, security & other services (not related to health) in the entire district. Politicians are individuals who form the govt. which makes laws and proposals for the country. They may give orders to MC but community health is not their priority job. Civilians are the general public. They are not legally bound for maintaining community health. But if they take up this role, the community can become much better, cleaner and healthier.

Multiple choice

There is a sudden increase in the total number of patients registering at hospitals in Salutria. The health authorities claim that this is due to the statewide health awareness campaign that they had conducted.

Which of the following statements most directly contradicts the conclusion drawn above?

  1. There has been a tremendous influx of new residents to Salutria.

  2. The hospitals have better healthcare facilities now.

  3. Residents unable to afford good health care register with state health clinics.

  4. Older residents make regular visits to state healthcare clinics.

  5. Basic health queries can now be addressed and remedied electronically.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Tremendous inflow could account for increased patients in the hospitals as against the claims of health authorities. Once there is a substantial increase in the total population, there would be a near proportionate increase in the number registering at hospitals.

Multiple choice

In the argument given, the two portions in boldface play which of the following roles?

Directions: Answer the given question based on the following passage:

Outsourced healthcare, especially expensive surgeries, is a trend that is catching the fancy of the patients both in the United States and in the United Kingdom. However, the similarity ends here as the reasons for healthcare being outsourced to nations like India are different in the two nations. Patients in USA prefer overseas treatment because of high costs associated with healthcare in the US. Patients in the UK, however, prefer going overseas for surgeries because of a huge backlog of surgeries and the long waiting period.
The United Kingdom operates its healthcare on a model that can best be called a socialist model of cooperation and shared responsibility. The healthcare in the nation is managed by the government by using a portion of the tax collections. The policy is all-inclusive and everyone is entitled to subsidized and sometimes free healthcare, irrespective of the patient’s ability to pay. This leaves room for considerable craftsmanship in the construction of socialist systems. All the employees of the public healthcare system are government employees. Surprisingly, this model of socialist, government run healthcare services has reported a higher satisfaction rate among the patients than the private sector model prevalent in the United States. The socialist model also eliminated the need for a medical insurance industry because of the affordability of treatment. According to one estimate, if America were to move to a socialist healthcare model like that of U.K., Cuba, Switzerland, and were to provide healthcare insurance to all its citizens, the American healthcare industry could still save $100 billion. However, the present scenario is that the healthcare industry is making huge profits even as many in need of medical care suffer.

 

  1. The first sentence lists a piece of evidence while the second sentence provides the conclusion to the argument.

  2. Both sentences provide intermediate conclusions to the argument.

  3. The first sentence lists a probable cause for the effect listed in sentence two.

  4. The second sentence lists a possible cause for the effect listed in sentence one.

  5. Both list possible causes for a conclusion drawn later in the passage.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

(1) Incorrect; the first sentence is a premise but the second sentence is not the conclusion to the argument. (2) Incorrect; both statements provide premises rather than conclusions.  (3) Incorrect; the first is more likely to be the outcome of the situation suggested in the second sentence. (4) Correct; the second sentence states a premise that healthcare is available to all in UK, irrespective of their ability to pay. The first sentence could be a possible outcome of this policy; because everyone is entitled to healthcare, there is a long waiting period. (5) Incorrect; the conclusion is about the American healthcare industry while both the sentences are about healthcare policies of UK.