Personal Finance Ch. 12

Employers that offer health insurance to their employees as part of their benefits package:

are purchased from private insurance companies

To qualify for Medicaid, individuals:

must meet federal guidelines

The Medicare Prescription Act:

now covers some prescription drugs that were not covered before

A flexible spending account is an account established by the employer for an employee:

to use pre-tax income to pay for medical expenses

Health insurance protects net worth by minimizing the chance that you will have to reduce savings or incur debt

true

The cost of health care has risen dramatically in recent years due to what?

- High cost of R&D in health care and Pharma - People are living longer and requiring attention for longer periods of time

Which of the following is true about private health insurance plans?

Hospital insurance provides coverage for individuals who require care from a hospital up to a specified limit.

When considering an HMO or PPO you should ask about:

any coinsurance or co-pay amounts

Medicaid

covers medical services to low income individuals

Health insurance is offered by:

government and private insurance companies

Medicare provides

health insurance to qualified individuals who are 65 or older

Part A of Medicare

is used to cover expenses associated with hospitalization

Health insurance received a lot of attention recently because:

it has become so expensive

Medigap insurance is provided by:

private insurance companies to cover medical expenses that are not covered by Medicare.

Individuals financially benefit from having health insurance because​ it:

provides protection against the high expenses of health care that could eliminate wealth

The factor that does not influence long-term insurance premiums is:

social security eligibility

Private health insurance refers to health insurance:

that can be purchased from private insurance companies

The purpose of long-term care insurance is to cover expenses associated with long-term health illness:

that cause individuals to help with everyday tasks

The factors that should be considered when purchasing long-term care insurance are:

the credit rating of the insurance company and the premium to be paid