Question 1

Employers set up a salary reduction agreement with the employees if:

Accepted Answer

A) employees pay hospitalization charges for the pre-existing conditions. 
B) employees pay health care costs due to lapse of insurance coverage. 
C) employees need additional insurance benefits. 
D) employees do not look for ways to avoid exposure to health care loss before it occurs. 
E) employees are injured on the job or become ill through work-related causes. 
A) employees pay hospitalization charges for the pre-existing conditions. 
B) employees pay health care costs due to lapse of insurance coverage. 
C) employees need additional insurance benefits. 
D) employees do not look for ways to avoid exposure to health care loss before it occurs. 
E) employees are injured on the job or become ill through work-related causes. C

Question 2

All group insurance plans extend health insurance benefits to retirees.

Accepted Answer

A) True 
 B)False  False

Question 3

An exclusive provider organization (EPO)is _____.

Accepted Answer

A) a hybrid form of health maintenance organization (HMO)that reimburses members a specified percentage of the cost 
B) a managed care plan that reimburses members only when affiliated providers are used 
C) a managed care plan in which subscribers receive services from physicians practicing from their own offices 
D) a hybrid form of health maintenance organization (HMO)that allows members to go outside the HMO network for care 
E) a prepaid hospital and medical expense plan that allows members to use nonaffiliated providers 
A) a hybrid form of health maintenance organization (HMO)that reimburses members a specified percentage of the cost 
B) a managed care plan that reimburses members only when affiliated providers are used 
C) a managed care plan in which subscribers receive services from physicians practicing from their own offices 
D) a hybrid form of health maintenance organization (HMO)that allows members to go outside the HMO network for care 
E) a prepaid hospital and medical expense plan that allows members to use nonaffiliated providers B

Question 4

You would have a better chance of choosing your own doctor with a preferred provider organizations (PPO)plan than with a health maintenance organizations (HMO)plan.

Accepted Answer

A) True 
 B)False

Question 5

Medicare and Medicaid cover ___________. ​

Accepted Answer

A) more than half of the total cost of long-term care 
B) all the costs related to long-term care 
C) less than half of the total cost of long-term care 
D) the balance between the actual medical cost and the coverage amount 
A) more than half of the total cost of long-term care 
B) all the costs related to long-term care 
C) less than half of the total cost of long-term care 
D) the balance between the actual medical cost and the coverage amount

Question 6

Long-term care is a term used to describe _____.

Accepted Answer

A) the inflation protection riders in the insurance policy 
B) the delivery of medical care to persons with chronic medical conditions in a nursing home 
C) the coverage for a serious illness or accident that prevents an insured person from working for an extended period 
D) an extended period of hospital stay due to a serious illness or accident 
E) compensation provided to the workers who are injured on the job or become ill through work-related causes. 
A) the inflation protection riders in the insurance policy 
B) the delivery of medical care to persons with chronic medical conditions in a nursing home 
C) the coverage for a serious illness or accident that prevents an insured person from working for an extended period 
D) an extended period of hospital stay due to a serious illness or accident 
E) compensation provided to the workers who are injured on the job or become ill through work-related causes.

Question 7

Which of the following is a public assistance program that provides health insurance benefits only to those who are unable to pay for health care?

Accepted Answer

A) Medicare 
B) Medicaid 
C) Blue Cross/Blue Shield 
D) Point-of-service (POS)plan 
E) Workers' compensation 
A) Medicare 
B) Medicaid 
C) Blue Cross/Blue Shield 
D) Point-of-service (POS)plan 
E) Workers' compensation

Question 8

Ben's (aged 40)health coverage charges a low ($15)deductible each time he visits a doctor or hospital.Other than the low per-service deductible,there is very little cost sharing.However,Ben has the advantages lack of deductibles,few or no exclusions,and not having to file insurance claims.Which of the following most likely provides Ben's health coverage?

Accepted Answer

A) HMO 
B) Blue Cross/Blue Shield association 
C) Commercial insurer (major medical) 
D) Medicare 
E) Fee-for-service indemnity plan 
A) HMO 
B) Blue Cross/Blue Shield association 
C) Commercial insurer (major medical) 
D) Medicare 
E) Fee-for-service indemnity plan

Question 9

Disability income insurance will provide income to a disabled or ill person ___________. ​

Accepted Answer

A) without a waiting period 
B) with unlimited funds for years 
C) with a waiting period before income is received 
D) with payments made to the recipient up to age 70 
A) without a waiting period 
B) with unlimited funds for years 
C) with a waiting period before income is received 
D) with payments made to the recipient up to age 70

Question 10

Long-term-care insurance provides protection against the cost of extended hospital stays.

Accepted Answer

A) True 
 B)False

Question 11

Employees should consider risk assumption for certain health risks because:

Accepted Answer

A) these are covered by Social Security. 
B) they are required to pay health care costs when their insurance coverage lapses. 
C) they would rather pay small amounts from savings than higher premiums to cover them. 
D) they need not look for ways to avoid exposure to risks before they occur. 
E) they will eliminate some or all of the factors from their lifestyle and reduce their chances of becoming ill. 
A) these are covered by Social Security. 
B) they are required to pay health care costs when their insurance coverage lapses. 
C) they would rather pay small amounts from savings than higher premiums to cover them. 
D) they need not look for ways to avoid exposure to risks before they occur. 
E) they will eliminate some or all of the factors from their lifestyle and reduce their chances of becoming ill.

Question 12

Premiums for workers' compensation insurance are paid by the employees.

Accepted Answer

A) True 
 B)False

Question 13

Group health insurance premiums are _____.

Accepted Answer

A) lower than an employer's health insurance plan premiums 
B) paid by the insurer to the insured 
C) designed to cover only comprehensive medical expenses 
D) equal to the reimbursements of medical expenses on claims for medical treatment 
E) only meant to offer coverage for prescription drug,dental,and vision care services 
A) lower than an employer's health insurance plan premiums 
B) paid by the insurer to the insured 
C) designed to cover only comprehensive medical expenses 
D) equal to the reimbursements of medical expenses on claims for medical treatment 
E) only meant to offer coverage for prescription drug,dental,and vision care services

Question 14

Living a healthy lifestyle is an example of loss prevention and control.

Accepted Answer

A) True 
 B)False

Question 15

During the past few decades,the percentage of our income spent on health care:

Accepted Answer

A) has increased due to an aging U.S.population. 
B) has decreased due to costly advances in medical technology. 
C) has increased due to advanced demand-and-supply distribution of health care facilities. 
D) has decreased due to increased regulation and decreased administrative costs. 
E) has decreased due to the reduction in the health care costs. 
A) has increased due to an aging U.S.population. 
B) has decreased due to costly advances in medical technology. 
C) has increased due to advanced demand-and-supply distribution of health care facilities. 
D) has decreased due to increased regulation and decreased administrative costs. 
E) has decreased due to the reduction in the health care costs.

Question 16

The Affordable Care Act (ACA)requires insurance companies to adhere to:

Accepted Answer

A) the pure community rating approach for individuals and small businesses. 
B) the adjusted community rating approach for individuals and small businesses. 
C) the modified community rating approach for SEC registered corporations. 
D) the unadjusted community rating approach for SEC registered corporations. 
E) the cost-of-living adjustment (COL
A) for individuals and small businesses. 
A) the pure community rating approach for individuals and small businesses. 
B) the adjusted community rating approach for individuals and small businesses. 
C) the modified community rating approach for SEC registered corporations. 
D) the unadjusted community rating approach for SEC registered corporations. 
E) the cost-of-living adjustment (COL
A) for individuals and small businesses.

Question 17

The community rating approach to health insurance premium pricing _____.

Accepted Answer

A) advocates offering Social Security Medicare program to all individuals irrespective of their age 
B) favors the government's contribution to the health savings account (HS
A)  
C) prohibits insurance companies from varying rates based on health status or claims history 
D) considers only medical insurance coverage from a private insurance company 
E) offers consumer directed health plans that go one step beyond a flexible-benefit plan 
A) advocates offering Social Security Medicare program to all individuals irrespective of their age 
B) favors the government's contribution to the health savings account (HS
A)  
C) prohibits insurance companies from varying rates based on health status or claims history 
D) considers only medical insurance coverage from a private insurance company 
E) offers consumer directed health plans that go one step beyond a flexible-benefit plan

Question 18

Blue Cross provides hospital coverage and Blue Shield provides prescription pharmacy coverage.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following changes would tend to increase the premium on a disability policy?

Accepted Answer

A) A shorter elimination period 
B) Use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited" 
C) Decreasing the benefit level to 50% from 66% of prior earnings 
D) Decreasing the payment period until age 65 to a maximum of 2 years 
E) Mandatory disability insurance in which the employer pays the entire premium 
A) A shorter elimination period 
B) Use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited" 
C) Decreasing the benefit level to 50% from 66% of prior earnings 
D) Decreasing the payment period until age 65 to a maximum of 2 years 
E) Mandatory disability insurance in which the employer pays the entire premium

Question 20

Which of the following is true of the health care industry?

Accepted Answer

A) In the fee-for-service plans,the health care provider is the same as the insurer. 
B) In a traditional indemnity plan,the premium cost is low if it is a high-deductible plan. 
C) In managed care plans,employers contract with the health care service provider. 
D) In traditional indemnity plans,the government waives the doctor's fees or the hospital charges. 
E) A group health insurance is a contract between pharmaceutical companies and the health care provider. 
A) In the fee-for-service plans,the health care provider is the same as the insurer. 
B) In a traditional indemnity plan,the premium cost is low if it is a high-deductible plan. 
C) In managed care plans,employers contract with the health care service provider. 
D) In traditional indemnity plans,the government waives the doctor's fees or the hospital charges. 
E) A group health insurance is a contract between pharmaceutical companies and the health care provider.

Employers set up a salary reduction agreement with the employees if:

All group insurance plans extend health insurance benefits to retirees.

An exclusive provider organization (EPO)is _____.

You would have a better chance of choosing your own doctor with a preferred provider organizations (PPO)plan than with a health maintenance organizations (HMO)plan.

Medicare and Medicaid cover ___________.

Long-term care is a term used to describe _____.

Which of the following is a public assistance program that provides health insurance benefits only to those who are unable to pay for health care?

Disability income insurance will provide income to a disabled or ill person ___________.

Long-term-care insurance provides protection against the cost of extended hospital stays.

Employees should consider risk assumption for certain health risks because:

Premiums for workers' compensation insurance are paid by the employees.

Group health insurance premiums are _____.

Living a healthy lifestyle is an example of loss prevention and control.

During the past few decades,the percentage of our income spent on health care:

The Affordable Care Act (ACA)requires insurance companies to adhere to:

The community rating approach to health insurance premium pricing _____.

Blue Cross provides hospital coverage and Blue Shield provides prescription pharmacy coverage.

Which of the following changes would tend to increase the premium on a disability policy?

Which of the following is true of the health care industry?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 9: Insuring Your Health

Employers set up a salary reduction agreement with the employees if:

All group insurance plans extend health insurance benefits to retirees.

An exclusive provider organization (EPO)is _____.

You would have a better chance of choosing your own doctor with a preferred provider organizations (PPO)plan than with a health maintenance organizations (HMO)plan.

Medicare and Medicaid cover ___________. ​

Long-term care is a term used to describe _____.

Which of the following is a public assistance program that provides health insurance benefits only to those who are unable to pay for health care?

Disability income insurance will provide income to a disabled or ill person ___________. ​

Long-term-care insurance provides protection against the cost of extended hospital stays.

Employees should consider risk assumption for certain health risks because:

Premiums for workers' compensation insurance are paid by the employees.

Group health insurance premiums are _____.

Living a healthy lifestyle is an example of loss prevention and control.

During the past few decades,the percentage of our income spent on health care:

The Affordable Care Act (ACA)requires insurance companies to adhere to:

The community rating approach to health insurance premium pricing _____.

Blue Cross provides hospital coverage and Blue Shield provides prescription pharmacy coverage.

Which of the following changes would tend to increase the premium on a disability policy?

Which of the following is true of the health care industry?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Medicare and Medicaid cover ___________.

Disability income insurance will provide income to a disabled or ill person ___________.