Prior to the Enactment of the Balanced Budget Act (BBA)

question 159

Multiple Choice

Prior to the enactment of the Balanced Budget Act (BBA) of 1997, payment for Medicare-covered primary and acute care services was based on the adjusted average per capita cost (AAPCC) . The AAPCC is defined as the

• A) average cost of services delivered to all patients living in a specified geographic region
• B) actuarial value of the deductible and coinsurance amounts for basic Medicare-covered benefits
• C) fee-for-service amount that the Centers for Medicaid and Medicare Services (CMS) would pay for a Medicare beneficiary, adjusted for age, sex, and institutional status
• D) average fixed monthly fee paid by all Medicare enrollees in a specified geographic region

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Definitions:

Sales Tax

A tax imposed by a government on the sale of goods and services.

Tax Revenue

The financial gains secured by governments through tax revenue.

Supply Shift

A change in the quantity of a product or service that suppliers are willing and able to sell in the market, due to factors like production costs, technology, and number of sellers.

Excise Tax

Excise Tax is a tax levied on specific goods, services, or transactions, such as tobacco, alcohol, and gasoline, typically to discourage consumption or raise revenue.