Which of the following best describes how the government was ...

[TVarnum]

Which of the following best describes how the government was successful at containing costs?
 
  a. The original legislation for Medicare and Medicaid had built-in cost controls.
  b. Certificate-of-need requirements restricted provider overtreatment.
  c. Utilization review determined appropriateness of care.
  d. Prospective payments were based on diagnosis-related groups (DRGs).
  e. Peer standard review organizations were effective watchdogs.

Question 2

Which of the following best describes the most crucial step in policy formation?
 
  a. Convincing both political parties and independents to support the proposed policy
  b. Defining the issue and placing it on the agenda for possible action
  c. Determining who has vested interest in what aspects of the policy
  d. Trying to simplify the proposed legislation so the public will support it

[Gabe]

Answer to Question 1

ANS: D
Prospective payment based on DRGs proved to be effective. The cost reduction that resulted gave rise to the managed care revolution as providers searched for the most cost-effective mechanism of care provision. Various efforts from, for example, certificate-of-need, peer review, and utilization review were not effective.

Answer to Question 2

ANS: B
How an issue is defined determines what the possible approaches to resolution might be. With all the demands on legislators' time, it is difficult for an issue to be seen as important enough to have action taken. Defining the issue as crucially important and worthy of a place on the agenda for possible action is the most critical step.