Exam 9: Insuring Your Health

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Workers compensation plans are uniform through the 50 states.

Given a $500 annual deductible,a $4,000 lid on the coinsurance,80/20 coinsurance,and a $250,000 policy limit,how much of a $15,000 medical bill will be paid by the insured?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -If you lose your job,COBRA permits you to continue your group health insurance coverage permanently as long as you pay the premium within 36 months of the termination of employment.

Eating healthy and exercising is an acceptable substitute for comprehensive health care coverage.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Medicare would pay [the entire | part of the] hospital bill for a covered person.

Most employees select ____ for their health insurance needs.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[The government | Individuals] pay(s)a larger share of personal health care expenses than private health insurance.

Major medical often supplements the basic coverage of hospital,surgical,and physician's expense insurance.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Supplementary Medical Insurance is a voluntary participatory program,commonly known as Medicare Part B.

Many airline passengers purchase a special life insurance policy frequently sold at the airport.This is an example of a(n)____ policy.

A managed care plan is a healthcare plan that emphasizes cost control and preventative treatment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Disability insurance is designed to [replace some of your income | pay medical bills] when you are disabled.

The fastest growing segment of the health care industry is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The most complex insurance you will probably buy during your lifetime is [life | health] insurance.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A preferred provider organization has characteristics of both managed care and an indemnity plan.

An elimination period in disability income insurance is most closely analogous to which of the following cost sharing provisions in health insurance?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A coordination of benefits provision in a health care policy would [aid | prohibit] collecting multiple payments for health care.

Tommy and Amanda Perez are a dual-earner couple with a young son,Bobby.Tommy and Amanda each receive health care coverage for themselves from their respective employers.Their employers pay the premiums for the workers,and coverage for dependents is available if the worker pays the premium cost.They are trying to decide which policy to cover Bobby under for the upcoming year.The following is a brief description of their policies and projected medical expenses for Bobby. Bobby is a healthy 8-year-old who is accident prone.Based on his past medical records,Tommy and Amanda expect the following covered medical costs for the year: 6 trips to the doctor--average cost of $75 per trip 2 trips to the emergency clinic--average cost of $300 per trip 1 broken bone--average cost of in-hospital surgery $1,250 12 prescriptions--average cost of $45 per prescription What would the combined cost of premiums plus out-of-pocket medical costs be for Bobby under Tommy's HMO? What would the combined cost of premiums plus out-of-pocket medical cost be for Bobby under Amanda's major medical plan?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A college graduate who is no longer included as a "child" on her parent's employer group health insurance policy can buy that health insurance [18 | 36] months as a result of COBRA.

____ are required by many insurance plans to reduce the number of unnecessary surgeries.