Question 1

Blue Cross and Blue Shield are two types of HMOs.

Accepted Answer

A) True 
 B)False

Question 2

Administrative costs in the United States consume half of the health care dollars. spent.

Accepted Answer

A) True 
 B)False

Question 3

What is a typical copayment amount for individuals?

Accepted Answer

A)  $0-5 
B)  $20-30 
C)  $35-50 
D)  $75-100 
E)  $100-200 
A)  $0-5 
B)  $20-30 
C)  $35-50 
D)  $75-100 
E)  $100-200

Question 4

Larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of 20%. If his total bill is $7,000, how much will his insurance pay?

Accepted Answer

A)  $800 
B)  $1,000 
C)  $2,200 
D)  $4,800 
E)  $6,000 
A)  $800 
B)  $1,000 
C)  $2,200 
D)  $4,800 
E)  $6,000

Question 5

The set amount that you must pay toward medical expenses before the insurance company pays benefits is called

Accepted Answer

A)  Reimbursement. 
B)  Reasonable and customary charges. 
C)  Deductible. 
D)  Internal limit. 
E)  Indemnity. 
A)  Reimbursement. 
B)  Reasonable and customary charges. 
C)  Deductible. 
D)  Internal limit. 
E)  Indemnity.

Question 6

If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers

Accepted Answer

A)  Duration of benefits to age 65. 
B)  A plan that provides 70-80% of your take-home pay. 
C)  Accident and sickness coverage. 
D)  Guaranteed renewability. 
E)  A short elimination period. 
A)  Duration of benefits to age 65. 
B)  A plan that provides 70-80% of your take-home pay. 
C)  Accident and sickness coverage. 
D)  Guaranteed renewability. 
E)  A short elimination period.

Question 7

This health insurance provision sets specific levels of repayment for certain services.

Accepted Answer

A)  Assigned benefits 
B)  Copayment 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits 
A)  Assigned benefits 
B)  Copayment 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits

Question 8

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

Accepted Answer

A)  $0 
B)  $3,500 
C)  $5,000 
D)  $3,000 
E)  $2,500 
A)  $0 
B)  $3,500 
C)  $5,000 
D)  $3,000 
E)  $2,500

Question 9

In which circumstances may the right to elect continued coverage under COBRA exist for a covered spouse or dependent?

Accepted Answer

A)  Divorce. 
B)  Legal separation. 
C)  Loss of dependent child status. 
D)  The covered employee's death. 
E)  All of these. 
A)  Divorce. 
B)  Legal separation. 
C)  Loss of dependent child status. 
D)  The covered employee's death. 
E)  All of these.

Question 10

Individuals over the age of 65 who are eligible for medicare may also be interested in purchasing more coverage called

Accepted Answer

A)  Medicare Part A. 
B)  Medicare Part B. 
C)  Medicaid. 
D)  Medigap. 
E)  Statewide health coverage. 
A)  Medicare Part A. 
B)  Medicare Part B. 
C)  Medicaid. 
D)  Medigap. 
E)  Statewide health coverage.

Question 11

Jenny wants health insurance that sets the amount that she must pay toward medical expenses before the insurance starts paying benefits. She is concerned about a

Accepted Answer

A)  Deductible. 
B)  Coinsurance. 
C)  Vision care policy. 
D)  Hospital indemnity policy. 
E)  Dread disease policy. 
A)  Deductible. 
B)  Coinsurance. 
C)  Vision care policy. 
D)  Hospital indemnity policy. 
E)  Dread disease policy.

Question 12

Which of the following is true about an elimination period?

Accepted Answer

A)  Premiums for a plan with an elimination period of 30 days will be less than premiums for a plan with an elimination period of 45 days. 
B)  Premiums for a plan with an elimination period of 50 days will be the same as premiums for a plan with an elimination period of 75 days. 
C)  Premiums for a plan with an elimination period of 40 days will be less than premiums for a plan with an elimination period of 75 days. 
D)  Premiums for a plan with an elimination period of 90 days will be the same as premiums for a plan with an elimination period of 60 days. 
E)  Premiums for a plan with an elimination period of 90 days will be less than premiums for a plan with an elimination period of 60 days. 
A)  Premiums for a plan with an elimination period of 30 days will be less than premiums for a plan with an elimination period of 45 days. 
B)  Premiums for a plan with an elimination period of 50 days will be the same as premiums for a plan with an elimination period of 75 days. 
C)  Premiums for a plan with an elimination period of 40 days will be less than premiums for a plan with an elimination period of 75 days. 
D)  Premiums for a plan with an elimination period of 90 days will be the same as premiums for a plan with an elimination period of 60 days. 
E)  Premiums for a plan with an elimination period of 90 days will be less than premiums for a plan with an elimination period of 60 days.

Question 13

Anna contributes pretax dollars to an account managed by her employer for her health care expenses. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does she have?

Accepted Answer

A)  FSA 
B)  HRA 
C)  Medicaid 
D)  Medicare 
E)  Self-funded health plan 
A)  FSA 
B)  HRA 
C)  Medicaid 
D)  Medicare 
E)  Self-funded health plan

Question 14

A flexible spending account (FSA) is funded by an employer.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a government health care program?

Accepted Answer

A)  Health maintenance organization (HMO) 
B)  Home health care agency 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO) 
A)  Health maintenance organization (HMO) 
B)  Home health care agency 
C)  Hospital and medical service plan 
D)  Medicare 
E)  Preferred provider organization (PPO)

Question 16

FSAs and HSAs provide tax advantages for health care expenses.

Accepted Answer

A) True 
 B)False

Question 17

A health insurance policy with this provision lists coverage in terms of services, not dollar amounts.

Accepted Answer

A)  Assigned benefits 
B)  Benefit limits 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits 
A)  Assigned benefits 
B)  Benefit limits 
C)  Exclusions and limitations 
D)  Internal limits 
E)  Service benefits

Question 18

Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from

Accepted Answer

A)  A public income insurance program. 
B)  Her health insurance plan. 
C)  Medicare. 
D)  Social Security. 
E)  Worker's compensation. 
A)  A public income insurance program. 
B)  Her health insurance plan. 
C)  Medicare. 
D)  Social Security. 
E)  Worker's compensation.

Question 19

Which of the following is TRUE about long-term care insurance?

Accepted Answer

A)  It covers help at home but not in a nursing home. 
B)  It covers a stay in a nursing home but not help at home. 
C)  The older you are when you enroll, the higher the annual premium. 
D)  Insurance plans are sold primarily to individuals in the 20-40 age group. 
E)  These plans typically pay for all costs. 
A)  It covers help at home but not in a nursing home. 
B)  It covers a stay in a nursing home but not help at home. 
C)  The older you are when you enroll, the higher the annual premium. 
D)  Insurance plans are sold primarily to individuals in the 20-40 age group. 
E)  These plans typically pay for all costs.

Question 20

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

Accepted Answer

A)  Dental expense. 
B)  Surgical expense. 
C)  Hospital expense. 
D)  Physician expense. 
E)  Major medical expense. 
A)  Dental expense. 
B)  Surgical expense. 
C)  Hospital expense. 
D)  Physician expense. 
E)  Major medical expense.

Blue Cross and Blue Shield are two types of HMOs.

Administrative costs in the United States consume half of the health care dollars. spent.

What is a typical copayment amount for individuals?

Larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of 20%. If his total bill is $7,000, how much will his insurance pay?

The set amount that you must pay toward medical expenses before the insurance company pays benefits is called

If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers

This health insurance provision sets specific levels of repayment for certain services.

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

In which circumstances may the right to elect continued coverage under COBRA exist for a covered spouse or dependent?

Individuals over the age of 65 who are eligible for medicare may also be interested in purchasing more coverage called

Jenny wants health insurance that sets the amount that she must pay toward medical expenses before the insurance starts paying benefits. She is concerned about a

Which of the following is true about an elimination period?

Anna contributes pretax dollars to an account managed by her employer for her health care expenses. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does she have?

A flexible spending account (FSA) is funded by an employer.

Which of the following is a government health care program?

FSAs and HSAs provide tax advantages for health care expenses.

A health insurance policy with this provision lists coverage in terms of services, not dollar amounts.

Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from

Which of the following is TRUE about long-term care insurance?

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

Personal Financial Planning in Action

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Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

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Home and Automobile Insurance

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Investing Fundamentals and Bonds

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Exam 9: Health and Disability Insurance

Blue Cross and Blue Shield are two types of HMOs.

Administrative costs in the United States consume half of the health care dollars. spent.

What is a typical copayment amount for individuals?

Larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of 20%. If his total bill is $7,000, how much will his insurance pay?

The set amount that you must pay toward medical expenses before the insurance company pays benefits is called

If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers

This health insurance provision sets specific levels of repayment for certain services.

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

In which circumstances may the right to elect continued coverage under COBRA exist for a covered spouse or dependent?

Individuals over the age of 65 who are eligible for medicare may also be interested in purchasing more coverage called

Jenny wants health insurance that sets the amount that she must pay toward medical expenses before the insurance starts paying benefits. She is concerned about a

Which of the following is true about an elimination period?

Anna contributes pretax dollars to an account managed by her employer for her health care expenses. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does she have?

A flexible spending account (FSA) is funded by an employer.

Which of the following is a government health care program?

FSAs and HSAs provide tax advantages for health care expenses.

A health insurance policy with this provision lists coverage in terms of services, not dollar amounts.

Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from

Which of the following is TRUE about long-term care insurance?

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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