Module 10 Quiz

What is a typical copayment amount for individuals?

$20-$30

Coordination of benefits (COB) provision applies to

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

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

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

?

Preferred provider organization (PPO)

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.

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

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

A policy that pays you back for actual expenses is called

a reimbursement plan

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

all are possibilities

Which of the following activities is NOT a step being taken to reduce health care costs?

all can reduce

Nancy is studying the health insurance plan options offered by her employer. She wants a policy that will have the insurance pay a percentage of her medical expenses after she meets her deductible. She should review the

coinsurance

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

comprehensive major medical policy

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

The set amount that you must pay toward medical expenses before the insurance company pays benefits is called

deductible

The type of health insurance coverage that pays for some or all of the daily costs of room and board

hospital

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

Most people receive health insurance under a group plan from

plan offered by employer

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