Question 1

An arrangement in which the preferred provider organization (PPO)pays the provider a specific sum for each day a patient is hospitalized is called a

Accepted Answer

A)  discount on charge arrangement. 
B)  per diem rate arrangement. 
C)  co-payment. 
D)  flat-fee arrangement. 
A)  discount on charge arrangement. 
B)  per diem rate arrangement. 
C)  co-payment. 
D)  flat-fee arrangement.

Question 2

Medicare basic coverage (Part A) covers

Accepted Answer

A)  hospital expenses, including surgeries. 
B)  outpatient hospital care. 
C)  physical therapy. 
D)  All of the above. 
A)  hospital expenses, including surgeries. 
B)  outpatient hospital care. 
C)  physical therapy. 
D)  All of the above.

Question 3

What are some of your considerations in choosing a long-term care insurance policy?

Accepted Answer

You should look at your family's health

Question 4

Which of the following is true regarding Medicare?

Accepted Answer

A)  Eligibility for the plan is based on both need and age. 
B)  The entire plan is free to qualified participants. 
C)  Part of the program is optional and has a charge. 
D)  Virtually all medical expenses are paid for those covered. 
A)  Eligibility for the plan is based on both need and age. 
B)  The entire plan is free to qualified participants. 
C)  Part of the program is optional and has a charge. 
D)  Virtually all medical expenses are paid for those covered.

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

Additional types of insurance commonly offered through employers include

Accepted Answer

A)  dental insurance. 
B)  fitness insurance. 
C)  vision insurance. 
D)  Both A and C are correct 
A)  dental insurance. 
B)  fitness insurance. 
C)  vision insurance. 
D)  Both A and C are correct

Question 7

Use the following two columns of items to answer the matching questions below:
-health insurance

Accepted Answer

A) covers health care expenses incurred by policyholders to limit their potential liabilities and ensure that they will receive the necessary medical care 
B) the nation's largest health care insurer 
A) covers health care expenses incurred by policyholders to limit their potential liabilities and ensure that they will receive the necessary medical care 
B) the nation's largest health care insurer

Question 8

If you are no longer covered under your parents' or guardian's health insurance plan,the Affordable Care Act requires you to

Accepted Answer

A)  visit the university's infirmary at least once per semester for a check-up. 
B)  purchase a prescription coverage plan. 
C)  purchase an individual health insurance plan or face a tax penalty. 
D)  purchase an individual health care plan from medicaid. 
A)  visit the university's infirmary at least once per semester for a check-up. 
B)  purchase a prescription coverage plan. 
C)  purchase an individual health insurance plan or face a tax penalty. 
D)  purchase an individual health care plan from medicaid.

Question 9

Which of the following statements about the Medicare Prescription Drug Improvement and Modernization Act of 2003 is not true?

Accepted Answer

A)  Seniors may purchase various forms of coverage for prescription drugs. 
B)  The act provides coverage for seniors and people with disabilities. 
C)  Low-income seniors are subject to a $250 deductible. 
D)  Individuals can establish a health-savings account. 
A)  Seniors may purchase various forms of coverage for prescription drugs. 
B)  The act provides coverage for seniors and people with disabilities. 
C)  Low-income seniors are subject to a $250 deductible. 
D)  Individuals can establish a health-savings account.

Question 10

When considering an HMO or PPO,which of the following would you not consider regarding the cost of the plan?

Accepted Answer

A)  Monthly premiums 
B)  Coinsurance 
C)  Number of doctors accepting new patients 
D)  Maximum out-of-pocket expenses per year 
A)  Monthly premiums 
B)  Coinsurance 
C)  Number of doctors accepting new patients 
D)  Maximum out-of-pocket expenses per year

Question 11

The cost of health care has risen dramatically in recent years due to all of the following,except

Accepted Answer

A)  people living longer and requiring attention for longer periods of time. 
B)  the high cost of technology in health care. 
C)  reduced litigation costs. 
D)  the bureaucratic processes of reimbursement and claim handling. 
A)  people living longer and requiring attention for longer periods of time. 
B)  the high cost of technology in health care. 
C)  reduced litigation costs. 
D)  the bureaucratic processes of reimbursement and claim handling.

Question 12

Which of the following statements is not true of disability insurance?

Accepted Answer

A)  You should have it even if you are retired and living on a pension. 
B)  The amount of coverage should equal your disposable income. 
C)  If you are self-employed you should have disability insurance. 
D)  All of the above are true of disability insurance. 
A)  You should have it even if you are retired and living on a pension. 
B)  The amount of coverage should equal your disposable income. 
C)  If you are self-employed you should have disability insurance. 
D)  All of the above are true of disability insurance.

Question 13

Part D of Medicare represents a combination of Part A and Part B provided through private insurance companies.

Accepted Answer

A) True 
 B)False

Question 14

You must have Parts A and B of Medicare in order to qualify for Part D.

Accepted Answer

A) True 
 B)False

Question 15

In most HMOs,if a person sees a specialist without being referred by the primary care physician,the HMO will not pay for the treatment.

Accepted Answer

A) True 
 B)False

Question 16

Since health insurance is expensive,

Accepted Answer

A)  most employers pay for the entire cost as an employee benefit. 
B)  employees are usually required to pay the entire cost of the insurance. 
C)  the employer and employee typically share the cost of the health insurance. 
D)  the government along with the employer helps to subsidize employee health insurance costs. 
A)  most employers pay for the entire cost as an employee benefit. 
B)  employees are usually required to pay the entire cost of the insurance. 
C)  the employer and employee typically share the cost of the health insurance. 
D)  the government along with the employer helps to subsidize employee health insurance costs.

Question 17

Which of the following is not true about disability insurance?

Accepted Answer

A)  Employer paid disability insurance policies continue in force after you have separated from the employer. 
B)  Disability insurance protects your net worth. 
C)  Private disability insurance pays over and above social security disability should you become disabled. 
D)  A, B and C are all true. 
A)  Employer paid disability insurance policies continue in force after you have separated from the employer. 
B)  Disability insurance protects your net worth. 
C)  Private disability insurance pays over and above social security disability should you become disabled. 
D)  A, B and C are all true.

Question 18

Which of the following is not true regarding government regulations to allow individuals who change jobs to maintain health insurance coverage?

Accepted Answer

A)  You may continue your health insurance provided through an employer's plan for 18 months after you stop working for that employer. 
B)  Even if you retire, you may continue coverage for 18 months unless you qualify for Medicare. 
C)  If you change jobs, a new insurance company cannot deny you coverage based on your health, medical condition, previous claims, or disability. 
D)  When changing jobs, you are allowed to stop and start health care plans whenever you need to and still be guaranteed insurance coverage by a new provider. 
A)  You may continue your health insurance provided through an employer's plan for 18 months after you stop working for that employer. 
B)  Even if you retire, you may continue coverage for 18 months unless you qualify for Medicare. 
C)  If you change jobs, a new insurance company cannot deny you coverage based on your health, medical condition, previous claims, or disability. 
D)  When changing jobs, you are allowed to stop and start health care plans whenever you need to and still be guaranteed insurance coverage by a new provider.

Question 19

________ 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 20

If you are in the 20% 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)  $600 
B)  $400 
C)  $20 per month 
D)  $2,400 
A)  $600 
B)  $400 
C)  $20 per month 
D)  $2,400

Exam 12: Health and Disability Insurance

An arrangement in which the preferred provider organization (PPO)pays the provider a specific sum for each day a patient is hospitalized is called a

Medicare basic coverage (Part A) covers

What are some of your considerations in choosing a long-term care insurance policy?

Which of the following is true regarding Medicare?

When comparing auto insurance and health insurance,

Additional types of insurance commonly offered through employers include

Use the following two columns of items to answer the matching questions below: -health insurance

If you are no longer covered under your parents' or guardian's health insurance plan,the Affordable Care Act requires you to

Which of the following statements about the Medicare Prescription Drug Improvement and Modernization Act of 2003 is not true?

When considering an HMO or PPO,which of the following would you not consider regarding the cost of the plan?

The cost of health care has risen dramatically in recent years due to all of the following,except

Which of the following statements is not true of disability insurance?

Part D of Medicare represents a combination of Part A and Part B provided through private insurance companies.

You must have Parts A and B of Medicare in order to qualify for Part D.

In most HMOs,if a person sees a specialist without being referred by the primary care physician,the HMO will not pay for the treatment.

Since health insurance is expensive,

Which of the following is not true about disability insurance?

Which of the following is not true regarding government regulations to allow individuals who change jobs to maintain health insurance coverage?

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

If you are in the 20% 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?

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