Fin Chapter 9

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

$2,500

Peter has a health insurance policy that includes a deductible of $1,000, a coinsurance of 20%, and a stop-loss of $4,000. If his total bill is $20,000, how much will he pay?

$4,000

Sandy went to the doctor three times, and each appointment cost $200. Her copayment was $25 per visit. How much was Sandy required to pay in total for her three visits?

$75

Georgia is considering between two health insurance policies. One includes a deductible of $600 and the other includes a coinsurance of 20%. If a bill is $4,000, how much will she be required to pay under the policy with the coinsurance?

$800

A policy that pays you back for actual expenses is called

A reimbursement plan.

Which of the following about individual health insurance policies is NOT correct?

All insurance companies that offer this type of policy are required to charge the same rates.

Coordination of benefits (COB) provision applies to

Combining the benefits of two insurance policies issued for a married couple.

Jenny wants health insurance that sets the amount that she must pay toward medical expenses before the insurance starts paying benefits. She is concerned about a

Deductible

Anna contributes pretax dollars to an account managed by her employer for her health care expenses. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does she have?

FSA

The duration of benefits for a disability income insurance plan can be

For only a few years. Until age 65. For life. All of these are possibilities.

If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers

Guaranteed renewability.

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

HRA

Medicaid covers

Lab services. Skilled nursing and home health services. Prescription drugs. Eyeglasses. All of these.

The type of health insurance coverage that takes up where basic health insurance coverage leaves off is

Major medical expense.

Which of the following is a government health care program?

Medicare

After you have reached a certain limit that you must pay for the deductible and coinsurance, the insurance company covers 100% of any additional cost. This is called

Out-of-pocket limit.

What is the primary purpose of medical expense insurance?

Pay actual medical costs for illness or injury.

A health insurance plan should include all of the following "must-haves" except

Provide a lifetime maximum level of coverage of up to $50,000.

Fran is interested in purchasing a major medical policy that limits the total out-of-pocket amount that she will have to pay. She should consider a

Stop-loss provision.

The type of health insurance coverage that may specify the maximum payment amount for each type of operation is

Surgical expense.