The Prospective Approval of Healthcare Based Solely on Medical Necessity

question 63

Multiple Choice

The prospective approval of healthcare based solely on medical necessity is called:

• A) preapproval.
• B) prior approval.
• C) preauthorization.
• D) precertification.

Understand and describe the concepts of adverse selection and moral hazard in insurance markets.

Explain the impact of private information on economic efficiency and the role of risk in economic decision-making.

Apply the concept of expected value to calculate health costs and insurance premiums.

Understand the behavior of risk-averse individuals and their strategies to manage risk.

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Definitions:

Federal Trade Commission

A federal agency established to prevent anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education.

Native Ads

Advertising content that matches the form and function of the platform on which it appears, blending in with natural content to provide a less intrusive experience.

Disclosures

The act of making new or important information known, typically relevant in legal and financial contexts to ensure transparency and honesty.

Climate Change

The long-term alteration of temperature and typical weather patterns in a place, largely attributed to human activities such as burning fossil fuels.