FNP Professional Issues Practice Exam

Question: 1 / 400

What is the main function of Medicare?

To provide emergency funds for hospitals

To set standards for reimbursement and control costs

The primary function of Medicare is to set standards for reimbursement and control costs associated with healthcare for the elderly and certain disabled individuals. Medicare is a federal program that provides health coverage to people aged 65 and older, as well as some younger individuals with disabilities. By establishing reimbursement standards, Medicare helps to regulate how much healthcare providers are paid for the services they deliver to its beneficiaries, ensuring that costs remain manageable and predictable for both the program and the patients it serves.

This control of costs is crucial in the context of an aging population that may require an increasing use of health services. By establishing clear guidelines for what constitutes necessary care and how much providers will be reimbursed, Medicare plays a strategic role in shaping the overall structure and economics of the healthcare system. Such standards aim to maintain quality while also addressing issues like fraud and waste in healthcare spending.

In contrast, the other options reflect functions that are either not aligned with Medicare's goals or pertain to broader healthcare systems rather than the specific intent of the Medicare program. For instance, offering free medical services to all does not align with Medicare's targeted support for specific populations.

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To offer free medical services to all

To oversee all private health insurance policies

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