Question 1

All of the following statements about the Medicare prescription drug benefit are true EXCEPT

Accepted Answer

A) Beneficiaries are required to pay a monthly premium for the benefit. 
B) The plan provides protection against catastrophic prescription drug expenditures. 
C) Coverage is limited to when a beneficiary is hospitalized or a resident of rest home. 
D) The plan has a coverage gap before a beneficiary has coverage for catastrophic costs.

Question 2

Which of the following statements about the financing of the Social Security program is (are)true?
I.Although the self-employed pay an OASDI tax rate that is twice the employee rate,they are allowed certain deductions that reduce the effective tax rate.
II.The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 3

Which of the following statements concerning Medicare Prescription Drug Plans is (are)true?
I.The monthly premium is based on the health status of the beneficiary and the number of prescriptions the beneficiary needs.
II.After the beneficiary has paid an initial deductible,Medicare pays the entire cost of all prescription drugs the beneficiary needs.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 4

Which of the following statements about a worker's primary insurance amount is (are)true?
I.It is the monthly amount paid to a worker who elects early retirement at age 62.
II.It is equal to 50 percent of the worker's final average pay that was subject to Social Security taxes.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 5

Marco,a risk manager in California,is interviewing for a new position in the state of Washington.When Marco asked about methods of providing workers compensation,the answer surprised him.In Washington,employers can self-insure the risk or obtain coverage through a state fund.Private insurers do not market workers compensation insurance in Washington.Washington uses a

Accepted Answer

A) competitive state fund. 
B) guaranty fund. 
C) reinsurance facility. 
D) monopoly state fund.

Question 6

Which of the following statements about the coverage of health care services under Part A of Medicare is (are)true?
I.Services in the patient's home are covered if the patient requires skilled care and meets certain conditions.
II.Hospice care is available for beneficiaries with a terminal illness.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 7

Which of the following statements about the characteristics of social insurance programs is true?

Accepted Answer

A) They are designed to provide a floor of income with respect to the risks that are covered. 
B) The method of determining benefits is determined by insurance contractual provisions. 
C) Participants are required to satisfy a means test to receive benefits. 
D) With few exceptions,participation in social insurance programs is voluntary.

Question 8

Prior to the passage of workers compensation laws,all of the following common law defenses could be used by employers to avoid financial responsibility for work-related injuries EXCEPT

Accepted Answer

A) contributory negligence. 
B) the fellow-servant doctrine. 
C) assumption of the risk. 
D) joint and several liability.

Question 9

Which of the following statements about Medigap policies is (are)true?
I.Insurers are required to have an open enrollment period of 6 months from the date an applicant first enrolls in Medicare Part B and is age 65 or older.
II.Most policies are of limited value because they largely duplicate benefits already provided by Medicare.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 10

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT

Accepted Answer

A) a divorced spouse,age 55,who was married to the retired worker for 6 years. 
B) a retired worker's 63 year-old spouse who is no longer caring for children. 
C) a retired worker's 52 year-old spouse who is caring for a 12 year-old daughter of the retired worker. 
D) a retired worker's unmarried 20 year-old son who has been severely disabled because of an automobile accident while he was in elementary school.

Question 11

Which of the following statements about the financial status of Medicare Part A is (are)true?
I.Part A has serious financial problems.
II. Reforms instituted by Congress have reduced total Part A expenditures in recent years.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 12

Which of the following statements about the medical insurance (Part B.portion of Medicare is (are)true? I.Participation in Part B of Medicare is voluntary.
II.It is provided at no cost to anyone who is fully insured under Medicare.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 13

One insured status under Social Security requires you to have earned at least six credits duing the last 13 calendar quarters ending with the quarter of death,disability,or entitlement to retirement benefits.This insured status is

Accepted Answer

A) disability insured. 
B) temporarily insured. 
C) fully insured. 
D) currently insured.

Question 14

Which of the following statements about the role of physicians with respect to Medicare claims is (are)true?
I.Physicians who do not accept an assignment of Medicare claims can charge as much as 200 percent of the Medicare-approved fee.
II.Physicians who accept assignment agree to accept the Medicare-approved amount as payment in full.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 15

Which of the following statements about hospice benefits under the hospital insurance (Part A.portion of Medicare is (are)true? I.Hospice benefits are payable only while the beneficiary is hospitalized.
II.Hospice benefits are provided to persons who are terminally ill.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 16

As an alternative to the Original Medicare Plan,beneficiaries can elect to enroll in private health insurance plans that cover all services that the Original Medicare Plan covers except hospice care.These private health insurance plans that are an alternative to the Original Medicare Plan are called

Accepted Answer

A) Medigap Insurance Programs. 
B) PACE Programs. 
C) Medicare Advantage Plans. 
D) Medicare Prescription Drug Plans.

Question 17

Under one of the Medicare Advantage Plans,beneficiaries can receive care at a discounted rate by using health care providers that belong to the plan network.Care outside the network is also covered,but beneficiaries must pay higher out-of-pocket costs.This type of Medicare Advantage Plan is a

Accepted Answer

A) Point of Service (POS)plan. 
B) Medical Savings Account (MS
A) plan. 
C) Health Maintenance Organization (HMO)plan. 
D) Preferred Provider Organization (PPO)plan.

Question 18

Which of the following statements about the Social Security cost-of-living adjustment is (are)true?
I.The amount of the adjustment is limited to a maximum of 2.5 percent annually.
II.Increases are based on changes in the consumer price index.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 19

Which of the following statements regarding the Emergency Unemployment Compensation (UEC)program is true?

Accepted Answer

A) EUC benefits are limited to individuals who have exhausted regular state benefits and have annual incomes below the federal poverty level. 
B) EUC benefits are funded entirely by the federal government. 
C) EUC benefits are limited to employees who have lost their job because of a labor dispute. 
D) EUC benefits are available on a case-by-case based and awarded at the discretion of the Secretary of Labor.

Question 20

Which of the following statements about participation in the Social Security program is (are)true?
I.Most private sector employees are covered under the Social Security program.
II.Each employee has the right to "opt out" of the Social Security program if the employee does not wish to participate in the program.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Exam 18: Social Insurance

All of the following statements about the Medicare prescription drug benefit are true EXCEPT

Which of the following statements about a worker's primary insurance amount is (are) true? I.It is the monthly amount paid to a worker who elects early retirement at age 62. II.It is equal to 50 percent of the worker's final average pay that was subject to Social Security taxes.

Which of the following statements about the coverage of health care services under Part A of Medicare is (are) true? I.Services in the patient's home are covered if the patient requires skilled care and meets certain conditions. II.Hospice care is available for beneficiaries with a terminal illness.

Which of the following statements about the characteristics of social insurance programs is true?

Prior to the passage of workers compensation laws,all of the following common law defenses could be used by employers to avoid financial responsibility for work-related injuries EXCEPT

All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT

Which of the following statements about the financial status of Medicare Part A is (are) true? I.Part A has serious financial problems. II. Reforms instituted by Congress have reduced total Part A expenditures in recent years.

Which of the following statements about the medical insurance (Part B.portion of Medicare is (are) true? I.Participation in Part B of Medicare is voluntary. II.It is provided at no cost to anyone who is fully insured under Medicare.

One insured status under Social Security requires you to have earned at least six credits duing the last 13 calendar quarters ending with the quarter of death,disability,or entitlement to retirement benefits.This insured status is

Which of the following statements about hospice benefits under the hospital insurance (Part A.portion of Medicare is (are) true? I.Hospice benefits are payable only while the beneficiary is hospitalized. II.Hospice benefits are provided to persons who are terminally ill.

As an alternative to the Original Medicare Plan,beneficiaries can elect to enroll in private health insurance plans that cover all services that the Original Medicare Plan covers except hospice care.These private health insurance plans that are an alternative to the Original Medicare Plan are called

Under one of the Medicare Advantage Plans,beneficiaries can receive care at a discounted rate by using health care providers that belong to the plan network.Care outside the network is also covered,but beneficiaries must pay higher out-of-pocket costs.This type of Medicare Advantage Plan is a

Which of the following statements about the Social Security cost-of-living adjustment is (are) true? I.The amount of the adjustment is limited to a maximum of 2.5 percent annually. II.Increases are based on changes in the consumer price index.

Which of the following statements regarding the Emergency Unemployment Compensation (UEC) program is true?