Question 1

Dependent children _____ will usually be covered by their parents' health insurance policy.

Accepted Answer

Dependent children are typically covered by their parents' health insurance policy up to a certain age, often specified by the policy or regulations.

Question 2

A coordination of benefits provision in a health care policy _____ by collecting benefits in multiple payments for health care.

Accepted Answer

A coordination of benefits provision is designed to prevent overinsurance and the duplication of benefits by ensuring that the total amount paid does not exceed 100% of the covered charges.

Question 3

A(n)_____ covers the cost of visits to a doctor's office or for a doctor's hospital visits, including consultation with a specialist.

Accepted Answer

Regular medical expense insurance is designed to cover the costs associated with visits to a doctor's office or for a doctor's visits to the hospital, including consultations with specialists.

Question 4

Patrick's monthly take-home pay is $5,000. His net worth is $125,000. He estimated that he would receive Social Security benefits worth $1,000 and company disability benefits $2,000 if he becomes disabled. The additional disability benefit that he needs to arrange for is:

Accepted Answer

The answer of Patrick's monthly take-home pay is $5,000. His...

Question 5

Medicare Part B covers:

Accepted Answer

Medicare Part B covers imaging, laboratory tests, and prosthetic devices among other services. Post-hospital medical services are covered under Medicare Part A, while therapy, rehabilitation, home health care, inpatient hospital services, and dental care are not covered under Medicare Part B.

Question 6

In order to qualify for disability insurance under Social Security, a person must be:

Accepted Answer

To qualify for disability insurance under Social Security, a person must be unable to carry out the duties of any job, not just their current job. Additionally, there is no specific time requirement for how long a person must be ill or expected to be disabled.

Question 7

The _____ represents the initial amount that's not covered by the policy and thus must be paid by the insured.

Accepted Answer

The deductible is the amount that the insured must pay out of pocket before the insurance company pays for any expenses. It represents the initial amount not covered by the policy.

Question 8

Medicare Part A provides:

Accepted Answer

The answer of Medicare Part A provides:
...

Question 9

A good health insurance plan embodies more than financing medical expenses, lost income, and replacement services; it incorporates:

Accepted Answer

A good health insurance plan often includes measures for risk reduction, such as promoting healthy behaviors or preventive care, which can be seen as forms of risk avoidance. This goes beyond just the financial aspects of insurance to include broader health management and risk mitigation strategies.

Question 10

Disability income policies usually have a(n)_____, which is a time delay from the date of the issuance of the policy until benefit privileges are activated.

Accepted Answer

The answer of Disability income policies usually have a(n)_____, which...

Question 11

_____ is a health care plan in which subscribers\users contract with the provider organization, which uses a designated group of providers meeting specific selection standards to furnish health care services for a monthly fee.

Accepted Answer

The description given in the question matches the definition of a managed care plan. The users contract with a provider organization and pay a monthly fee for access to a network of designated providers who meet specific selection standards. This type of plan is known for coordinating and managing care to control costs and improve quality.

Question 12

Medicare and Medicaid cover:

Accepted Answer

Medicare and Medicaid may cover some aspects of long-term care, but the extent of coverage can vary widely, often covering less than half of the total costs. Medicare typically has limited long-term care benefits, mainly covering short-term rehabilitation, while Medicaid may cover more but is need-based.

Question 13

If you are laid off, your group health insurance:

Accepted Answer

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), if you are laid off, you have the right to continue your group health insurance coverage for a limited period provided you pay the premiums. This law applies to employers with 20 or more employees.

Question 14

Disability income insurance will provide income to a disabled or ill person:

Accepted Answer

Disability income insurance typically includes a waiting period (also known as an elimination period) before benefits are paid out. This period can vary depending on the policy but is designed to ensure that the disability is long-term.

Question 15

Michael's estimated current monthly take-home pay is $4,500. His total existing monthly benefit is $2,950. Michael's estimated monthly disability benefit is:

Accepted Answer

Michael's estimated monthly disability benefit would be the difference between his current monthly take-home pay ($4,500) and his total existing monthly benefit ($2,950), which equals $1,550.

Question 16

The purchasing power of income from a long-term disability policy is protected by:

Accepted Answer

The cost-of-living adjustment (COLA) provision in a long-term disability policy is specifically designed to protect the purchasing power of the income benefits by adjusting them in line with inflation or increases in the cost of living, ensuring that the value of the benefits does not erode over time.

Question 17

Which of the following changes would tend to increase the premium on a disability policy?

Accepted Answer

A shorter elimination period means the insurance company starts paying benefits sooner after a disability occurs, increasing the insurer's risk and thus the premium.

Question 18

A _____ is a hybrid form of health maintenance organization (HMO)that allows members to go outside of the HMO network for care.

Accepted Answer

A point-of-service (POS) plan is a hybrid form of health maintenance organization (HMO) that allows members to go outside of the HMO network for care. This means that members have more flexibility in choosing their healthcare providers compared to traditional HMO plans. However, going outside of the network may result in higher out-of-pocket costs for the member.

Question 19

The ACA's provisions relating to long-term care include the Community Living Assistance Services and Support Program (CLASS), which will be administered by:

Accepted Answer

The answer of The ACA's provisions relating to long-term care...

Quiz 9: Insuring Your Health

Dependent children _____ will usually be covered by their parents' health insurance policy.

A coordination of benefits provision in a health care policy _____ by collecting benefits in multiple payments for health care.

A(n) _____ covers the cost of visits to a doctor's office or for a doctor's hospital visits, including consultation with a specialist.