Since 1981, States Have Had the Option to Experiment with New

question 9

Multiple Choice

Since 1981, states have had the option to experiment with new approaches to their Medicaid programs under the "freedom of choice" waivers. Under one such waiver, a Section 1915(b) waiver, states are allowed to

• A) Give Medicaid recipients complete freedom in choosing healthcare providers
• B) Give Medicaid recipients the option to choose not to enroll in a healthcare plan
• C) Mandate certain categories of Medicaid recipients to enroll in health plans
• D) Establish demonstration projects to test new approaches for delivering care to Medicaid recipients

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Definitions:

Standard Variable Overhead Rate

The rate used in budgeting and costing that applies variable overheads to a specific activity basis such as labor hours.

Direct Labour Hours

The aggregate hours employees devoted to the process of production have logged.

Variable Overhead

Costs that vary with the level of output, such as utilities and labor, as opposed to fixed overheads.

Actual Direct Labour Hours

The actual time spent by labor directly involved in the production of goods or service delivery.