Deck 11: Managing Health Expenses

Question 1

Open-enrollment periods are common in group health care plans.

Answer 1

True

Question 2

Medicaid is a health care program for low income individuals.

Answer 2

True

Question 3

HMOs generally require that your primary care physician must order all procedures and approve referrals to medical specialists.

Answer 3

True

Question 4

The most obvious health related financial loss is the need for income replacement when one is unable to work.

Question 5

Less than 50 percent of Americans are covered by some type of private or government health care plan.

Question 6

Health care plan is a generic name for any program that pays for or provides reimbursement for direct health care expenditures.

Question 7

Medicare is the only federal health care program currently in place.

Question 8

The United States spends a higher percentage of its gross domestic product than any other country

Question 9

A group health care plan is sold collectively to an entire group of persons rather than individuals.

Question 10

Health maintenance organizations provide health care rather than health insurance.

Question 11

It is becoming increasingly common for health care plans to offer lower rates to persons with a healthy lifestyle.

Question 12

Traditional health insurance plans are often referred to as basic indemnity plans.

Question 13

Medicare (Part A) covers prescription drugs

Question 14

You can make changes in your group health care plan at any time during the year

Question 15

Both Medicare Part A and Part B pay 100 percent of covered expenses

Question 16

The official name of the 2010 health insurance reform law is Obamacare.

Question 17

Young adults may stay on a parent's health care plans until age 22 or graduating from college whichever comes first.

Question 18

Choosing your Medicare plan through a private company that combines Medicare Parts A and B into one plan called a Medicare Advantage plan can broaden health care benefits.

Question 19

Medicare (Part B) requires a monthly premium for coverage.

Question 20

The hospitalization portion of Medicare (Part A) requires a monthly premium from the insured.

Question 21

If one is covered by workers' compensation,he or she probably does not need additional health insurance coverage.

Question 22

An HSA is a tax-deductible savings account into which individuals and/or their employers can deposit tax-sheltered funds for use to pay medical bills including the deductibles and other out-of-pocket costs required by a high-deductible plan.

Question 23

Long-term care insurance replaces a portion of the income lost when you cannot work because of illness or injury.

Question 24

HMOs have dollar limits on their coverage

Question 25

An HRA is a tax-deductible savings account into which individuals and/or their employers can deposit tax-sheltered funds for use to pay medical bills including the deductibles and other out-of-pocket costs required by a high-deductible plan.

Question 26

The health benefits provided under Medicaid differ from state to state.

Question 27

Long-term care insurance that provides coverage if a lower number of activities of daily living are unperformable will cost less.

Question 28

Workers' compensation covers a full range of health care losses for job-related injuries and illnesses.

Question 29

Married couples who are both covered by a health care plan at work should maintain both plans for even broader coverage.

Question 30

The claims procedures for nearly all health care plans include patient payment for the health service with the insurance reimbursing the patient after the appropriate forms are filed.

Question 31

Traditional health insurance provides protection against financial loss resulting from the perils of illness and injury.

Question 32

Medicaid pays for the costs of custodial nursing home care.

Question 33

Combining a health savings account with a high deductible health care plan is a way to save money on the cost of a health care plan.

Question 34

A copayment differs from a deductible in that the copayment typically requires you to pay a specific dollar amount each time you have a specific covered expense item.

Question 35

By selecting a longer waiting period,the purchaser of long-term care insurance can afford long-term coverage and still keep the premiums affordable.

Question 36

Long-term care insurance policies can be written to cover in-home care.

Question 37

A preferred provider organization is a group of health care providers who contract with a health insurance company to provide services at a discount.

Question 38

Long-term care insurance premiums are lower for younger individuals.

Question 39

A certificate of insurance,rather than an insurance policy,is received by those with group health care coverage.

Question 40

A student who has lost group health care coverage under his or her parent's employer group plan due to the parent leaving the job is eligible to continue coverage through COBRA rights.

Question 41

To make it possible for consumers to comply with the individual mandate to buy health insurance the Affordable Care Act established ______ run by their states or the federal government.

A)health insurance exchanges
B)health maintenance organizations
C)Medicaid
D)Medicare

Question 42

Increasing the waiting period on a disability income policy from 30 to 90 days can significantly reduce the premium.

Question 43

When illness or injuries strike which of these issues may affect your finances?

A)direct health care expenses
B)recuperative care costs
C)rehabilitation costs
D)All of these

Question 44

Social Security disability income payments are available to covered workers who are either partially or totally disabled.

Question 45

A residual clause will allow a reduced level of disability income benefits when partial,rather than full,disability strikes.

Question 46

Disability income insurance plans may cover long-term but not short-term disability.

Question 47

A health care proxy is a legal document in which an individual designates another person to make health care decisions if the individual is rendered incapable of making his or her wishes known.

Question 48

A living will addresses financial issues should one become mentally incapacitated.

Question 49

You might want to seek out disability income policies with a cost-of-living clause,which will increase your benefit amount to keep up with inflation.

Question 50

A special power of attorney gives the designated person virtually absolute power to manage your financial affairs.

Question 51

The benefit period in a disability income policy is the minimum period of time for which benefits will be paid

Question 52

A living will is a written statement indicating that its signer does not wish extraordinary medical measures to be taken if he or she has no reasonable expectation of recovery from a desperate medical problem.

Question 53

An any-occupation policy will cost more than an own-occupation policy,everything else being equal.

Question 54

Employers are more likely to offer short-term rather than long-term disability income insurance as a free employee benefit.

Question 55

Most companies will not write disability income insurance policies for more than 60 to 80 percent of the insured's after-tax earnings.

Question 56

Many employers provide income protection during a period of disability,but most are for only short periods of time.

Question 57

Long-term disability income insurance is probably the type of insurance most often overlooked by individuals and families

Question 58

The greater your age when a disability income policy is purchased,the more you might need inflation protection.

Question 59

As a result of the health care reform Patient Protection and Affordable Health Care Act which of the following aspects of health care plans will no longer be allowed?

A)charging men and women different rates
B)payout maximums
C)denial of coverage for preexisting conditions
D)All of these.

Question 60

Under the Affordable Care Act,a health policy that cost 8 percent of your income for premiums or 9.5 percent of family income if obtained through an employer is referred to as

A)Medicare.
B)benchmark premium.
C)individual shared responsibility fee.
D)affordable health insurance.

Question 61

Under the Affordable Care Act,all health care plans must include

A)ten specified essential health benefits
B)up to ten family members
C)disability income insurance
D)no out-of-pocket spending requirements

Question 62

Medicare Part A

A)is a hospitalization program for persons over 65.
B)requires no premiums.
C)provides custodial care in a nursing home.
D)is a hospitalization program for persons over 65 and requires no premiums.

Question 63

Which of the following government programs is jointly funded by federal and state governments?

A)Social Security disability income
B)Medicare
C)Medicaid
D)Veterans Administration hospitals

Question 64

Under the Affordable Care Act,your level of income used to calculate the maximum tax penalty if you do not have a health care plan is your

A)adjusted gross income
B)modified adjusted gross income
C)gross income
D)taxable income.

Question 65

Drawbacks of an HMO include

A)limited choice of physicians
B)no coverage for preventive treatments
C)limited availability through group plans.
D)higher deductibles and copayments compared to other plans

Question 66

The period of time each year when you can make changes in your selection of health care plans available from your employer is called a(n)

A)benefit period.
B)waiting period
C)open-enrollment period.
D)eligibility window

Question 67

Medicare Part B covers all of the following except

A)outpatient care.
B)doctor office visits
C)chiropractic services.
D)hospitalization

Question 68

Under the Affordable Care Act,all health care plans must cover ten essential benefits of adequate coverage and be labeled as a

A)comprehensive health care plan
B)quality healthcare plan
C)health maintenance plan
D)full-coverage health plan

Question 69

Traditional health insurance plans typically have ____ and ____ requirements that result in out-of-pocket costs for the insured.

A)deductibles; coinsurance
B)Medicare; Medicaid
C)HMOs; PPOs
D)POS; PSN

Question 70

As a result of the health care reform Patient Protection and Affordable Health Care Act a child may stay on a parent's health care plan until age

A)18.
B)21 or graduating from college whichever comes sooner.
C)21 or graduating from college whichever comes later.
D)26.

Question 71

A group of physicians and hospitals who have banded together to offer a health insurance contract in areas where there is no available HMO is called a

A)preferred-provider network
B)individual practice organization
C)cooperative health care group
D)provider-sponsored network

Question 72

Which of the following is not true of Medicare Part B?

A)Is supplementary health care coverage
B)Does not cover outpatient care
C)Requires the payment of monthly premiums
D)Covers doctor office visits

Question 73

Which of the following is a general term used to describe an HMO,health insurance or another plan that pays for or provides reimbursement for direct health care expenditures? A legal document that directs life support measures,such as a respirator,to be removed is called

A)hospitalization
B)Medicare
C)health insurance
D)a health care plan

Question 74

Which of the following best describes a preexisting condition?

A)An exclusion
B)Cancer, heart condition, or other serious disease
C)An injury that results from an accident
D)A previously diagnosed medical condition

Question 75

The cost of a health maintenance organization is generally a(n)

A)monthly fee and coinsurance.
B)annual premium and a deductible
C)monthly premium, deductible, and coinsurance
D)monthly fee, a deductible, and copayments

Question 76

Preventive health care and catching medical problems early is encouraged by

A)government health care plans.
B)health maintenance organizations (HMOs).
C)preferred provider organizations (PPOs).
D)private health insurance.

Question 77

Health care plans for Medicare eligible people that are purchased through a private company and provide both Medicare Parts A and B coverage are called.

A)Medicare Advantage Plans
B)Medicaid Plans
C)S-CHIP Plans
D)Medicare Part D Plans

Question 78

______ provide(s) preventative care as well as other types of care for a set monthly fee which is considered to be advance payment for the care received

A)Traditional health insurance
B)Consumer-driven health insurance
C)Health maintenance organization (HMO)
D)Preferred provider organization (PPO)

Question 79

Which of the following is not a characteristic of Medicare Part A?

A)Available to eligible persons 65 or older
B)Requires monthly premium payments
C)Available to individuals with kidney disorders
D)Provides benefits for hospitalization

Question 80

Open enrollment period requirements are generally waived for such family changes as

A)births
B)adoptions
C)marriages
D)All of these