Deck 7: Private Health Insurance

Question 1

The first private insurance company is the U.S. was

A) Blue Cross/Blue Shield
B) Aetna
C) AARP
D) United Health

Answer 1

Blue Cross/Blue Shield

Question 2

The dominance of employment-based insurance is commonly attributed to the events following

A) WWI
B) WWII
C) Korean War
D) Vietnam War

Answer 2

WWII

Question 3

In 1964 what percentage of the population had coverage for surgical insurance?

A) 55%
B) 62%
C) 71%
D) 82%

Answer 3

71%

Question 4

Premiums are the

A) Monthly or annual amounts paid by employers and individuals who purchase insurance
B) Bonuses and benefits for those who are insured
C) Incentives paid to employers and individuals who are insured
D) Community benefits for those in the community that encourage individuals to be insured

Question 5

Community rating is based on

A) Health care use and expenditures of a specific group
B) Unequal benefit levels, cost sharing and lifetime limits
C) Average health care use and expenditures of a community
D) None of the above

Question 6

Preferred provider organizations are

A) Traditional form of managed care requiring a primary care physician
B) A fixed per member per month provider for an individuals enrolled in the providers panel
C) A less restrictive form of managed care as they do not require a primary care physician as gatekeeper
D) Fee for service organization that retrospectively pays for services received

Question 7

Small employer health insurance (for firms with less than 50 employees) is characterized by

A) Lower premiums and many choices
B) Premiums and choices the same as larger employers
C) Regulated by the federal government to ensure dental coverage
D) Higher premiums and fewer choices

Question 8

The dominant type of employment based coverage

A) Fee for Service
B) Health Maintenance Organizations
C) Preferred Provider Organizations
D) Point of Service

Question 9

Employer based benefits are

A) Thriving offering plentiful benefits
B) Offering fewer plans with greater cost sharing
C) No longer offered
D) Used only as a recruitment tool

Question 10

Rand Health Insurance Experiment (HIE)

A) Was a failure
B) Determined Price elasticity for health insurance
C) Yielded the first scientifically valid estimates of individual price sensitivity to the level of copayment and deductible for individual health services
D) Proved that copayments and deductibles did not impact levels of health service sought

Question 11

Private insurance has been the predominate source of insurance coverage in the U.S. since the first Blue Cross plan in 1929.

Question 12

The rate of employment based insurance was at 75% in 2010.

Question 13

The annual average premium for family coverage in 2012 was $15,073.

Question 14

Employment-based and individual insurance coverage are very similar.

Question 15

Community rating is the practice of setting premiums based on use and expenditures of a particular group.

Question 16

All employers offer health insurance to their employees.

Question 17

Firms with sufficient financial reserves and positive outlook have the choice to self-insure rather than purchase insurance for their employees.

Question 18

Dependent cover is automatically provided to employees at no additional cost when insurance is provided.

Question 19

Employment -based benefits are on the increase.

Question 20

Managed care has existed in the United States for more than 70 years.