CHAPTER 1 HEALTH INSURANCE

is issued a policy (A person covered by an individual health plan is issued a policy.)

A person covered with an individual health plan

20 (An employer MUST have 20 employees for a terminated employee to be eligible for COBRA.)

How many employees must an employer have for a terminated employee to be eligible for COBRA?

Taxable income ( Disability insurance benefits from a group policy paid for by an employer is considered taxable income.)

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?

May 30 (The "effective date" is the health insurance coverage start date.)

Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage?

Master policy (A single contract for Group Medical Insurance issued to an employer is known as a master policy.)

What is the contract called that is issued to an employer for a Group Medical Insurance plan?

When the recipient pays the premiums (Group disability benefits are tax free to the insured when the premiums are paid by the recipient.)

When are group disability benefits considered to be tax-free to the insured?

When contribution or participation rules have been violated (According to HIPAA, a group health policy renewal can be denied when participation or contribution rules have been violated.)

When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?

The amount contributed by the owner ( An individual with a Health Savings Account (HSA) can make all of these decisions EXCEPT how much the employer will contribute.)

Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make?

Temporary employee (A temporary employee is typically NOT eligible for coverage in a group health policy.)

Which of the following is typically NOT eligible for coverage in a group health policy?

Employer (An employer would be a possible applicant and contract policyholder of a single master contract or master policy for group health benefits.)

Which of the following would be considered a possible applicant and contract policyholder for group health benefits?