Question 1

Certain federal regulations ensure that individuals can maintain continuous health care coverage.

Accepted Answer

A) True 
 B)False

Question 2

In addition to social security tax withholding, wage earners also pay a 1.45% withholding tax on all gross salary and wages for

Accepted Answer

A)  supplemental social security tax. 
B)  medicaid tax. 
C)  medicare tax. 
D)  the supplemental college loan fund. 
A)  supplemental social security tax. 
B)  medicaid tax. 
C)  medicare tax. 
D)  the supplemental college loan fund.

Question 3

Compared to indemnity plans, what is an advantage of managed health care plans?

Accepted Answer

A)  You will have lower insurance premiums. 
B)  There are no out-of-pocket expenses required. 
C)  You have greater choices of health care providers. 
D)  They are very efficient in their handling of paperwork. 
A)  You will have lower insurance premiums. 
B)  There are no out-of-pocket expenses required. 
C)  You have greater choices of health care providers. 
D)  They are very efficient in their handling of paperwork.

Question 4

You are trying to help your aunt figure out how much she owes on a recent flurry of medical bills that resulted from her recent bypass surgery. Her company provided PPO plan includes the following provisions, $2,400 deductible, 10% co-pay and a $6,000 maximum out-of-pocket limit. You have summarized her bills as follow: doctor visits $1,500, surgeon and other docs $16,000, operating room $15,000, hospital stay $21,000, rehabilitative service $10,000. How much does she owe in total on these enormous bills?

Accepted Answer

A)  $2,400 
B)  $61,100 
C)  $6,000 
D)  $8,510 
A)  $2,400 
B)  $61,100 
C)  $6,000 
D)  $8,510

Question 5

When comparing auto insurance and health insurance,

Accepted Answer

A)  you have fewer options with health insurance than with auto insurance. 
B)  both types of policies have deductibles. 
C)  the government has very little involvement in either of these areas. 
D)  All of the above are true. 
A)  you have fewer options with health insurance than with auto insurance. 
B)  both types of policies have deductibles. 
C)  the government has very little involvement in either of these areas. 
D)  All of the above are true.

Question 6

Health care providers who are part of an HMO are paid a predetermined amount of compensation per month for each patient who participates in the plan.

Accepted Answer

A) True 
 B)False

Question 7

A PPO health insurance plan allows individuals a better selection of health care providers, but is more expensive than an HMO.

Accepted Answer

A) True 
 B)False

Question 8

In most HMOs, a person in unable to see a specialist without being referred by the primary care physician.

Accepted Answer

A) True 
 B)False

Question 9

Under a discount on charge arrangement, the provider receives

Accepted Answer

A)  a flat fee. 
B)  more than what it would normally charge for a particular service. 
C)  less than what it would normally charge for a particular service. 
D)  an amount equal to the charge for the service. 
A)  a flat fee. 
B)  more than what it would normally charge for a particular service. 
C)  less than what it would normally charge for a particular service. 
D)  an amount equal to the charge for the service.

Question 10

One of the problems with changing jobs is that you will immediately lose your health insurance and may not be able to get new insurance right away.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a true statement?

Accepted Answer

A)  More than half of all individuals in the United States will need long-term care in some period during their life. 
B)  Medicare covers most of the expenses associated with long-term care. 
C)  The cost of an aide providing basic care at home can exceed $1,000 per week. 
D)  For individuals who enter a nursing home, the cost can easily exceed $80,000 per year. 
A)  More than half of all individuals in the United States will need long-term care in some period during their life. 
B)  Medicare covers most of the expenses associated with long-term care. 
C)  The cost of an aide providing basic care at home can exceed $1,000 per week. 
D)  For individuals who enter a nursing home, the cost can easily exceed $80,000 per year.

Question 12

Before you decide to take out an individual disability policy, you should consider all of the following, except

Accepted Answer

A)  amount of home mortgage. 
B)  cost of gasoline commuting to and from work. 
C)  employer disability insurance policy. 
D)  dividends received from stock portfolio. 
A)  amount of home mortgage. 
B)  cost of gasoline commuting to and from work. 
C)  employer disability insurance policy. 
D)  dividends received from stock portfolio.

Question 13

Which of the following is usually not offered as part of a benefits package to employees?

Accepted Answer

A)  Auto insurance 
B)  Health insurance 
C)  Retirement benefits 
D)  Disability insurance 
A)  Auto insurance 
B)  Health insurance 
C)  Retirement benefits 
D)  Disability insurance

Question 14

If you are in the 22% federal and 5% state income tax brackets, how much do you save each year by allocating $200 per month to your flexible spending account assuming you have zero funds left over at the end of the year?

Accepted Answer

A)  $648 
B)  $400 
C)  $20 per month 
D)  $2,400 
A)  $648 
B)  $400 
C)  $20 per month 
D)  $2,400

Question 15

Which of the following is not true as it relates to the cost of health care?

Accepted Answer

A)  Fraudulent claims by patients and health care providers add to the cost. 
B)  People are living longer and their health care costs are higher. 
C)  Better claim handling and processing has helped reduce the cost of health care. 
D)  Technology used in medicine is very expensive and has added to the cost. 
A)  Fraudulent claims by patients and health care providers add to the cost. 
B)  People are living longer and their health care costs are higher. 
C)  Better claim handling and processing has helped reduce the cost of health care. 
D)  Technology used in medicine is very expensive and has added to the cost.

Question 16

Health insurance policies may provide coverage for all of the following, except

Accepted Answer

A)  cosmetic surgery. 
B)  rehabilitation. 
C)  mental health. 
D)  pregnancy. 
A)  cosmetic surgery. 
B)  rehabilitation. 
C)  mental health. 
D)  pregnancy.

Question 17

Basic health insurance policies and Medicare will not cover stays in nursing homes or assisted living centers for very long.

Accepted Answer

A) True 
 B)False

Question 18

________ insurance is provided by private insurance companies to cover medical expenses that are not covered by Medicare.

Accepted Answer

The answer of ________ insurance is provided by private insurance...

Question 19

Which of the following statements about an HMO is not true?

Accepted Answer

A)  You will pay the same monthly premium whether you use the plan or not. 
B)  You need to be referred to see a specialist or the HMO may not pay. 
C)  Individuals usually pay a small fee for a visit to a physician or for a prescription. 
D)  The health care providers are compensated on the basis of each visit by a patient. 
A)  You will pay the same monthly premium whether you use the plan or not. 
B)  You need to be referred to see a specialist or the HMO may not pay. 
C)  Individuals usually pay a small fee for a visit to a physician or for a prescription. 
D)  The health care providers are compensated on the basis of each visit by a patient.

Question 20

All of the following will lower the premium of long-term care insurance, except

Accepted Answer

A)  having a longer waiting period before the policy goes into effect. 
B)  having a higher stop-loss provision. 
C)  waiting until you are retired to obtain the insurance. 
D)  choosing to receive benefits for a limited period. 
A)  having a longer waiting period before the policy goes into effect. 
B)  having a higher stop-loss provision. 
C)  waiting until you are retired to obtain the insurance. 
D)  choosing to receive benefits for a limited period.

Certain federal regulations ensure that individuals can maintain continuous health care coverage.

In addition to social security tax withholding, wage earners also pay a 1.45% withholding tax on all gross salary and wages for

Compared to indemnity plans, what is an advantage of managed health care plans?

When comparing auto insurance and health insurance,

Health care providers who are part of an HMO are paid a predetermined amount of compensation per month for each patient who participates in the plan.

A PPO health insurance plan allows individuals a better selection of health care providers, but is more expensive than an HMO.

In most HMOs, a person in unable to see a specialist without being referred by the primary care physician.

Under a discount on charge arrangement, the provider receives

One of the problems with changing jobs is that you will immediately lose your health insurance and may not be able to get new insurance right away.

Which of the following is not a true statement?

Before you decide to take out an individual disability policy, you should consider all of the following, except

Which of the following is usually not offered as part of a benefits package to employees?

If you are in the 22% federal and 5% state income tax brackets, how much do you save each year by allocating $200 per month to your flexible spending account assuming you have zero funds left over at the end of the year?

Which of the following is not true as it relates to the cost of health care?

Health insurance policies may provide coverage for all of the following, except

Basic health insurance policies and Medicare will not cover stays in nursing homes or assisted living centers for very long.

________ insurance is provided by private insurance companies to cover medical expenses that are not covered by Medicare.

Which of the following statements about an HMO is not true?

All of the following will lower the premium of long-term care insurance, except

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 12: Health and Disability Insurance

Certain federal regulations ensure that individuals can maintain continuous health care coverage.

In addition to social security tax withholding, wage earners also pay a 1.45% withholding tax on all gross salary and wages for

Compared to indemnity plans, what is an advantage of managed health care plans?

When comparing auto insurance and health insurance,

Health care providers who are part of an HMO are paid a predetermined amount of compensation per month for each patient who participates in the plan.

A PPO health insurance plan allows individuals a better selection of health care providers, but is more expensive than an HMO.

In most HMOs, a person in unable to see a specialist without being referred by the primary care physician.

Under a discount on charge arrangement, the provider receives

One of the problems with changing jobs is that you will immediately lose your health insurance and may not be able to get new insurance right away.

Which of the following is not a true statement?

Before you decide to take out an individual disability policy, you should consider all of the following, except

Which of the following is usually not offered as part of a benefits package to employees?

If you are in the 22% federal and 5% state income tax brackets, how much do you save each year by allocating $200 per month to your flexible spending account assuming you have zero funds left over at the end of the year?

Which of the following is not true as it relates to the cost of health care?

Health insurance policies may provide coverage for all of the following, except

Basic health insurance policies and Medicare will not cover stays in nursing homes or assisted living centers for very long.

________ insurance is provided by private insurance companies to cover medical expenses that are not covered by Medicare.

Which of the following statements about an HMO is not true?

All of the following will lower the premium of long-term care insurance, except

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters