Which of the Following Reforms Could Potentially Reduce Spending on Health

question 150

Multiple Choice

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

• A)nationalize health care so that all health services are government funded and operated
• B)give every citizen a fixed amount of money that can only be spent on health care services
• C)reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future
• D)standardize the tax treatment of employer-based health insurance benefits and private spending on health care

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Definitions:

Initial Cash Flow

The initial movement of money for an investment or project, often an outlay, which is considered when evaluating the potential financial returns.

Liabilities

Liabilities are financial obligations a company owes to external parties, such as loans, accounts payable, and mortgages.

Accrual

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.