Finance Quiz #9

Cynthia was charged $300 for a specialist office visit. Her indemnity policy will pay $125. What amount will she have to pay?

$175

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

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

How much does a private income insurance program pay for loss of normal income from a disability?

40-60%, with some plans paying up to 75%

Which of the following is incorrect?

A bad disability policy pays you if you cannot work at your regular job.

A policy that pays you back for actual expenses is called

A reimbursement plan.

Who is most likely to use a home health care agency?

An elderly neighbor.

This health insurance provision lets your insurer make direct payments to your doctor or hospital.

Assigned benefits

Coordination of benefits (COB) provision applies to

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

The insurance that helps pay hospital, surgical, medical, and other bills with a low deductible is known as a(n)

Comprehensive major medical policy.

Under the Patient Protection and Affordable Care Act of 2010, which of the following is NOT correct?

Employers must offer continuing coverage through COBRA for up to 24 months after you leave your job.

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

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

Jacob is concerned that his out-of-pocket health care expenses will be quite high, so he is considering adding contributions to a tax-free account that he can use with his high-deductible policy to cover catastrophic expenses. What kind of plan does he have?

HSA

Cameron, age 25, sustained a debilitating hand injury and was unable to perform his job as a viola player in the local orchestra for 45 days. His employer has a disability income insurance policy that pays 70% of take-home pay with an elimination period of 60 days and coverage to age 65. Given this information, which of the following is true for Cameron?

He will not be eligible for any disability income because his disability ended before the elimination period ended.

Steve's employer offers a health plan that stresses preventive services and covers routine immunizations and checkups, screening programs, and diagnostic tests. What kind of plan does his employer offer?

Health maintenance organization (HMO)

The type of health insurance coverage that pays for some or all of the daily costs of room and board during a hospital stay is

Hospital expense.

A provision in a health insurance policy that sets specific levels of repayment for certain services is called

Internal limit.

Jack needs comprehensive medical coverage. However, his income is very low. What plan should he investigate?

Medicaid

Individuals over the age of 65 who are eligible for medicare may also be interested in purchasing more coverage called

Medigap.

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.

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

Physician expense.

This type of plan combines features of Health maintenance organizations and PPOs. It uses a network of participating physicians and medical professionals who have contracted to provide services for certain fees.

Point-of-service (POS) plan

Yvonne's employer offers a health plan that has a group of doctors and hospitals that agree to provide specified medical services to members at prearranged fees. This health plan offers some flexibility since members can either visit a physician from a list or go to their own doctors. What kind of plan does her employer offer?

Preferred provider organization (PPO)

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.

A health insurance policy with this provision lists coverage in terms of services, not dollar amounts.

Service benefits

The Health Insurance Portability and Accountability Act of 1996

Sets federal standards to ensure that workers do not lose their health insurance if they change jobs.

Mark was severely injured while on vacation and expects to be unable to work for at least 12 months. Because of his injury, he should expect to be eligible for disability income from

Social Security.

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.

Which of the following is TRUE about long-term care insurance?

The older you are when you enroll, the higher the annual premium.

Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from

Worker's compensation.