When Medicare Was Created in 1965, Payment Administration Was Assigned

question 10

Multiple Choice

When Medicare was created in 1965, payment administration was assigned to Blue Cross and Blue Shield entities. Which form of delegated governance does this exemplify?

• A)delegating program management and service delivery to nonprofit organizations or trusted professionals such as physicians
• B)delegating program governance to for-profit firms to introduce market competition
• C)delegating choice to consumers who receive government subsidies to purchase services from social welfare marketplaces
• D)delegating to state and local governments who are charged with running publicly funded programs

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Definitions:

Cost Method

Cost Method is an accounting methodology for investment, where the investment is recorded at its acquisition cost without considering dividends or changes in market value.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value, often occurring when the bond's interest rate is higher than the current market rate.

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable net assets, often accounted for as goodwill or amortized over time.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not worth its current value on the balance sheet.