Deck 11: Health, Disability, and Long-Term Care Insurance

Question 1

Affordable health care has become one of the most important social issues of our time.

Answer 1

True

Question 2

A recent study by Americans for Long-Term Care Security found that one out of five Americans over age 30 is at risk of needing some form of long-term care within the next 12 months.

Answer 2

False

Question 3

Physician expense insurance coverage excludes visits to the doctor's office,x-rays,and lab tests.

Answer 3

False

Question 4

A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin.

Question 5

A good health insurance plan should offer basic coverage for hospital and doctor bills.

Question 6

More people have hospital insurance than any other kind of health insurance.

Question 7

Hospital expense insurance pays part or the full amount of hospital bills for room,board,and other charges.

Question 8

The best way to avoid the high cost of illness is to stay well.

Question 9

The United States has the lowest per capita medical expenditures of any industrialized country in the world.

Question 10

Group health insurance will cover you,but not your immediate family.

Question 11

People often buy surgical expense insurance in combination with hospital expense insurance.

Question 12

Health club membership is a form of protection to alleviate the financial burdens individuals suffer from illness or injury.

Question 13

A good health insurance plan should impose no unreasonable exclusions.

Question 14

Individual health insurance covers either one person or a family.

Question 15

One reason for the high cost of health care is the use of sophisticated and expensive technologies.

Question 16

Surgical expense insurance pays part or the full amount of the surgeon's fees for an operation.

Question 17

Basic health insurance coverage includes hospital expense insurance,surgical expense insurance,and physician expense insurance.

Question 18

The prescription to stay healthy includes getting sufficient rest,relaxation,and exercise.

Question 19

Physician expense insurance helps pay for physician's care that does not involve surgery.

Question 20

Very few group health insurance policy contracts have a coordination of benefits provision.

Question 21

A hospital indemnity policy pays benefits directly to the hospital only when you are hospitalized.

Question 22

Two sources of government health insurance are Medicare and Medicaid.

Question 23

Medicare covers routine checkups,dental care,most immunizations,cosmetic surgery,routine foot care,eyeglasses,and hearing aids.

Question 24

Dread disease and cancer policies are usually very good values.

Question 25

Medicare covers the cost of care received outside the United States,Canada,and Mexico.

Question 26

Medicare originally had two parts: hospital insurance and medical insurance.

Question 27

Medicare does not cover the medical expenses of private-duty nursing care.

Question 28

Care in a skilled nursing facility beyond 100 days per benefit period is approved and covered by Medicare.

Question 29

Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible.

Question 30

Long-term care insurance was virtually unknown 50 years ago,but it is now growing faster than any other form of insurance.

Question 31

Preferred provider organizations combine the best elements of the fee-for-service and HMO systems.

Question 32

Medicare hospital insurance is financed from a portion of the Social Security tax.

Question 33

Blue Shield plans provide hospital care benefits on essentially a "service type" basis.

Question 34

The hospital indemnity policy is a good substitute for basic or major medical protection.

Question 35

A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount.

Question 36

Blue Cross plans provide for surgical and medical services performed by physicians.

Question 37

A stop-loss provision requires the policyholder to pay up to a certain amount,after which the insurance company pays 100 percent of all remaining covered expenses.

Question 38

Medigap insurance,intended to supplement Medicare,is sold and serviced by the federal government.

Question 39

To get Medicare medical insurance,you must sign up for it and pay a monthly premium.

Question 40

Medicaid is administered by each state within certain broad federal requirements and guidelines.

Question 41

Every year,40% of the adult U.S.population suffers a long-term disability.

Question 42

Medicaid is financed by both state and federal funds.

Question 43

Very few members of the Medicaid population are also covered by Medicare.

Question 44

The premium for noncancelable and guaranteed renewable coverage is higher,but the coverages are well worth the extra cost.

Question 45

Many employers provide disability income protection for their employees through group insurance plans.

Question 46

Generally,disability income policies with shorter waiting periods have lower premiums.

Question 47

Once a person is eligible,Medicaid provides more benefits than does Medicare.

Question 48

Because Medicaid coverage is very limited,people using it need to purchase supplemental insurance.

Question 49

Disability income insurance provides regular cash income lost by employees as the result of an accident or illness.

Question 50

Unfortunately,most salaried workers in the United States do not participate in Social Security programs.

Question 51

Disability income insurance is probably the least neglected form of available insurance protection.

Question 52

Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.

Question 53

Medicaid differs from Medicare because eligibility for Medicaid depends on having very low income and assets.

Question 54

Title XIX of the Social Security Act provides for a program of medical assistance to certain low-income individuals and families.

Question 55

Disability benefits begin on the first day you are disabled.

Question 56

Medicare supplement insurance is a government-sponsored program.

Question 57

You should look for a disability income policy that waives premium payments while you are disabled.

Question 58

Medicare was never intended to pay all medical costs.

Question 59

You should seek a disability policy that pays benefits for life.

Question 60

The affordability of health care is one of the most important _____ issues of our time?

A)social
B)economic
C)personal
D)business
E)financial

Question 61

Which of the following groups has undertaken innovative activities to contain the costs of health care?

A)Employers
B)Labor unions
C)Health insurers
D)Consumers
E)All of these

Question 62

Chris Jones has an insurance policy that pays benefits in cash when he is hospitalized.What type of insurance would this be?

A)Comprehensive major medical
B)Hospital indemnity
C)Long-term care
D)Cancer
E)Disability income

Question 63

Joe Johnson needs surgery for appendicitis.Which part of his basic health insurance coverage should help pay for the surgeon's fees?

A)Hospital expense
B)Surgical expense
C)Physician expense
D)Major medical expense
E)Medicare Part B

Question 64

Julie Cumbie was playing softball and got hurt sliding into second base.She gets an x-ray at her doctor's office to make sure her ankle isn't broken.Which part of her basic health insurance coverage should help pay for this x-ray?

A)Hospital expense
B)Surgical expense
C)Physician expense
D)Major medical expense
E)Medicare Part B

Question 65

Which of the following is an innovative way concerned groups are containing health care costs?

A)Incentives to encourage preventive care
B)Encouragement of prepaid group practices
C)Establishment of community health education programs
D)Encouragement by doctors to pay cash for routine medical care
E)All of these

Question 66

Sophie Bennett has personally paid a total of $5,000 in medical costs this year,which is the out-of-pocket limit listed in her insurance plan.At this point,there is a provision in her insurance contract that requires her insurance company to pay 100% of her medical costs for the remainder of the year.What provision is this likely to be?

A)Coordination of benefits
B)Hospital indemnity clause
C)Coinsurance
D)Stop-loss provision
E)Major medical expense provision

Question 67

Raymond Carter has a type of all-inclusive health insurance that has a very low deductible and pays for hospital,surgical,medical,and other bills under one plan.What type of insurance does he have?

A)Comprehensive major medical
B)Hospital indemnity
C)Long-term care
D)Cancer
E)Disability income

Question 68

Jamal Walker developed a serious infection and spent 6 months in his hospital's intensive care unit.What part of his health insurance policy would be the most useful for helping to pay for this?

A)Hospital expense
B)Surgical expense
C)Physician expense
D)Major medical expense
E)Medicare Part B

Question 69

Sophie Bennett is required to pay 20 percent of her medical costs after the deductible has been paid.What is this requirement called?

A)Coordination of benefits
B)Deductible
C)Coinsurance
D)Stop-loss provision
E)Waiver of premium

Question 70

Harry Mayhue gets a bad case of the flu and ends up in the hospital for three days.Which part of his basic health insurance coverage should help pay for this stay?

A)Hospital expense
B)Surgical expense
C)Physician expense
D)Major medical expense
E)Medicare Part B

Question 71

What are some possible reasons for high and rising costs of health care?

A)The use of sophisticated and expensive technologies
B)Rapid average earnings growth for health care professionals
C)Duplication of tests
D)The increasing number and longevity of elderly people
E)All of these

Question 72

Nathanial Drummond has three different insurance policies.He has been injured in an accident and has incurred $30,000 in medical bills.There is a provision in all of his insurance contracts that ensures the total benefits he receives from all sources is limited to 100% of allowable medical expenses.What is this provision called?

A)Coordination of benefits
B)Deductible
C)Coinsurance
D)Stop-loss provision
E)Waiver of premium

Question 73

Each year,Sophie Bennett must pay $500 for doctor's visits before her insurance company will make any payments for doctor's visits.What is this requirement called?

A)Coordination of benefits
B)Deductible
C)Coinsurance
D)Stop-loss provision
E)Waiver of premium

Question 74

Karen Blumenthall was seriously injured in a car accident and is paralyzed from the waist down.Luckily,she has an insurance policy that will pay for someone to come in and help with her daily activities such as bathing,dressing,and household chores.What type of insurance policy is this likely to be?

A)Comprehensive major medical
B)Hospital indemnity
C)Long-term care
D)Cancer
E)Disability income

Question 75

What can you do to responsibly reduce your personal health care costs?

A)Get some exercise.
B)Gain a little extra weight.
C)Smoke and drink.
D)Drive dangerously.
E)Avoid relaxation.

Question 76

Joan Wilder receives a phone call from a salesperson who tries to sell her an insurance policy by scaring her about her high risk of death from this disease.She knows that this type of insurance policy is notoriously a poor value,so she politely declines.What type of insurance policy did this salesperson likely try to sell her?

A)Comprehensive major medical
B)Hospital indemnity
C)Long-term care
D)Cancer
E)Disability income

Question 77

Most group health insurance plans in the United States are sponsored by:

A)victims of communicable diseases.
B)individuals with families.
C)single individuals with no dependents.
D)elderly individuals.
E)employers, who in turn offer the benefits to employees.

Question 78

Which country has the highest per capita medical expenditures of any industrialized country in the world?

A)Australia
B)Britain
C)Canada
D)Denmark
E)United States

Question 79

Which provision in a health insurance policy states that you will pay a flat dollar amount each time you receive a covered medical service?

A)Daily benefit
B)Benefit period
C)Policy limit
D)Elimination period
E)Copayment

Question 80

Which type of health insurance plan may not cover all of your health insurance needs and may deny benefits if you lose your job?

A)Group health insurance
B)Life insurance
C)Medicare
D)Medicaid
E)Disability income insurance