Exam 3: MHA 710 MHA710 Latest Healthcare Economics

Exam 3: MHA 710 / MHA710 (Latest

2025 / 2026) Healthcare Economics | Questions and Verified Answers | 100% Correct | Grade A - LSU

Question:

What was the main effect of the agreement on Trade-Related Aspects of

Intellectual Property Rights (TRIPS) on United States' domestic policy?:

• It extended the life of patents from 17 years from the date of grant to 20

years from the date of application.

• It significantly increased the ability of generic substitutes to compete with

brand name drugs.

• It allowed generic drugs to rely on the original safety and efficacy evidence

provided by the equivalent branded drug.

• It lowered the life of patents from 20 years from the date of grant to 17

years from the date of application.

Answer:

It extended the life of patents from 17 years from the date of grant to 20 years from the date of application.

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Question:

Part B pays what percentage of the allowable fee set by Medicare?:

• 70 percent
• 85 percent
• 75 percent
• 80 percent
• 90 percent

Answer:

80%

Question:

Which of the following is a true statement about long-term care?:

• Over 20 percent of the elderly population currently live in nursing homes.
• The cost of long-term care is funded primarily by private insurance.
• There would be fewer residents of nursing homes if more people had long-

term care insurance.

• Nursing homes are largely populated by elderly men.
• Almost half of all nursing home residents are over age 85.

Answer:

Almost half of all nursing home residents are over age 85

Question:

Which of the following services is covered under Part B of Medicare?:

• Dental care
• Emergency room services
• Days 2 through 60 of a hospital stay 2 / 4

• The first day of a hospital stay

Answer:

emergency room services

Question:

Danzon and Furukawa (2003) argue that:

• the provision of government-provided free care increases the availability of

newly introduced drugs to everyone covered by the government plan.

• price controls in the United States would lower drug prices without

affecting the overall availability of branded drugs or lowering incentives for future drug development.

• pharmaceutical price differences across countries are roughly in line with

differences in per capita gross domestic product, supporting the predictions of Ramsey pricing practices.

• generic competition in the United States has not done much to lower drug

prices or spending.

Answer:

pharmaceutical price differences across countries are roughly in line with differences in per capita gross domestic product, supporting the predictions of Ramsey pricing practices.

Question:

By the time a drug enters the clinical trial phase of testing on humans:

• it has already completed most of the investment in research and

development.

• its safety and effectiveness are no longer major concerns. 3 / 4

• the only step left in the process is testing to see if the drug accomplishes its

intended purpose.

• an average of five years of the overall patent life has already expired.
• its approval is virtually assured.

Answer:

an average of five years of the overall patent life has already expired.

Question:

Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to seniors of the 1965 introduction of Medicare. Which of the

following statements is true concerning the results of this study?:

• The introduction of Medicare in 1965 played an essential role in the

decline in mortality rates for the elderly over the following decade.

• The long-run benefits of Medicare may be due to encouraging the use of

preventive care to control chronic illnesses.

• The real impact of the introduction of Medicare was on the reduction in

out-of-pocket health care spending for households faced with catastrophic events (those in the top 25 percent of spenders).

• There is evidence of a significant reduction in mortality from specific

causes (e.g., cardiovascular disease) and the mortality rates of certain vulnerable population groups (e.g., non-whites).

Answer:

The real impact of the introduction of Medicare was on the reduction in out- of-pocket health care spending for households faced with catastrophic events (those in the top 25 percent of spenders).

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