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

Question 1

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

Answer 1

False

Question 2

Make sure you have enough insurance, but don't over insure.

Answer 2

True

Question 3

The number of Americans without basic health insurance has been decreasing since the 1980s.

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

A good health insurance plan should impose no unreasonable exclusions.

Question 12

To stay healthy, you must get sufficient rest, relaxation, and exercise.

Question 13

Group health insurance plans comprise about 90 percent of all health insurance issued by health and life insurance companies.

Question 14

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

Question 15

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

Question 16

Health insurance includes both medical expense insurance and disability income insurance.

Question 17

Individual health insurance covers either one person or a family.

Question 18

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

Question 19

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

Question 20

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

Question 21

Dread disease and cancer policies are usually very good values.

Question 22

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

Question 23

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

Question 24

Two sources of government health insurance are Medicare and Medicaid.

Question 25

Medicare originally had two parts: hospital insurance (Part A) and medical insurance (Part B).

Question 26

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

Question 27

Preferred Provider Organizations combine the best elements of the fee-for-service and HMO systems.

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

A hospital indemnity policy pays benefits only when you are hospitalized and only to the hospital where the care was provided.

Question 33

Public opinion polls consistently show that Americans are happy with the nation's health care system.

Question 34

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

Question 35

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

Question 36

Medicare hospital insurance (Part A) is financed from a portion of the Social Security tax.

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

Long-term care insurance was virtually unknown 25 years ago, but now it is growing faster than any other form of insurance.

Question 39

Physician expense insurance is expensive, therefore, it should be avoided.

Question 40

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

Question 41

Medicaid is financed by both state and federal funds.

Question 42

To get Medicare medical insurance (Part B) you must sign up for it and pay a monthly premium.

Question 43

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

Question 44

Medicare Supplement insurance is a government-sponsored program.

Question 45

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

Question 46

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 47

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

Question 48

Look for a disability income policy that waives premiums while you are disabled.

Question 49

Disability benefits begin on the first day you are disabled.

Question 50

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

Question 51

Most people are more likely to lose their income due to death than due to disability.

Question 52

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

Question 53

Just about every worker is adequately covered by disability income insurance.

Question 54

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

Question 55

Medicare was never intended to pay all medical costs.

Question 56

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

Question 57

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

Question 58

Skilled nursing care beyond 100 days per benefit period is approved and covered by Medicare.

Question 59

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

Question 60

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

Question 61

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

A) The use of sophisticated and high-priced equipment
B) Medical personnel who command high earnings
C) Innovative but costly treatment for some illnesses
D) The increasing number and longevity of elderly people
E) All of these

Question 62

Most health insurance policies in the United States are sold to:

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 63

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

Question 64

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) U.S.A.

Question 65

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

Question 66

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

A) Get some exercise.
B) Gain a little extra weight.
C) Smoke and drink.
D) Live dangerously.
E) Don't seek medical care.

Question 67

Why are a growing number of students without health insurance?

A) Insurance companies refuse to insure them.
B) Students are young and healthy.
C) Students don't need health insurance.
D) Students don't care if they get sick.
E) Older students are not covered by family policies.

Question 68

In the U.S., administrative costs consume nearly 11 percent of health care dollars, compared to 1 percent under Canada's socialized system.

Question 69

Joe Johnson needs surgery for appendicitis. Which part of his basic insurance coverage should help pay for this surgery?

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

Question 70

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

A) Employers
B) Labor unions
C) Health insurers
D) Consumers
E) All of the parties listed

Question 71

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 clause in all of his insurance contracts that ensures he receives no more than a total of $30,000 in payments from his insurance companies. What is this clause called?

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

Question 72

The affordability of which one of these is one of the most important social issues of our time?

A) Health care
B) Clothing
C) Automobiles
D) Vacations
E) Day care

Question 73

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

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

Question 74

Health insurance includes:

A) life insurance.
B) disability insurance.
C) personal liability insurance.
D) an annuity.
E) an endowment.

Question 75

Which type of health insurance pays part or all of an insured's hospital bills for room, board, and other charges?

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

Question 76

Jamal Walker developed a serious infection and spent 6 months in his hospital's intensive care unit. What part of his 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
E) Medicare Part B

Question 77

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

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

Question 78

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

A) Group health
B) Individual health
C) Medicare
D) Medicaid
E) Private disability income

Question 79

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

Question 80

Julie Cumbie is playing softball and gets 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 insurance coverage should help pay for this x-ray?

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