Personal Finance Chapter 12
Stop-Loss Provision. Pete's health insurance policy specifies that he should pay 25% of expenses associated with a long-term illness, and he has a stop-loss provision of $55,358 in his policy. If Pete incurs expenses of $98,200, how much would he owe? Pete would owe $_____. (Round to the nearest dollar.)
$24,550 ($98,200 x 25% = $24,550) under the stop of $55,358
Medicaid: (Select the best answer below.) A. covers medical services to low income individuals. B. represents optional medical insurance. C. is used to cover expenses associated with nursing facilities. D. can only be used with pre-approval.
A. covers medical services to low income individuals.
The Medicare Prescription Act: (Select the best answer below.) A. now covers some prescription drugs that were not covered before. B. has premium and deductible amounts that change every three years. C. replaces Medicare B. D. allows seniors to purchase various forms of coverage from government subsidized firms.
A. now covers some prescription drugs that were not covered before.
Affordable Care Act. Briefly describe some of the significant features of the Affordable Care Act. Some of the significant features include: (Select all that apply.) A. requiring U.S. citizens to obtain health insurance and thus access to medical care. B. allowing certain retirees to obtain prescription drugs at substantial discounts. C. allowing anyone 65 and older to receive medical care for free. D. preventing anyone from being denied coverage due to a preexisting medical condition. E. preventing anyone from being denied coverage due to a preexisting medical condition. F. allowing young adults to remain on their parent's health insurance until age 30.
A. requiring U.S. citizens to obtain health insurance and thus access to medical care. B. allowing certain retirees to obtain prescription drugs at substantial discounts. D. preventing anyone from being denied coverage due to a preexisting medical condition. E. preventing anyone from being denied coverage due to a preexisting medical condition.
To qualify for Medicaid, individuals: (Select the best answer below.) A. must be on public assistance. B. must meet federal guidelines. C. must be age 65 or older. D. must meet Medicare guidelines.
B. must meet federal guidelines.
Health insurance received a lot of attention recently because: (Select the best answer below.) A. children require more health care and the birth rate is increasing. B. most employers offer health care. C. it has become so expensive. D. climate change has increased disease rates.
C. it has become so expensive.
Individuals financially benefit from having health insurance because it: (Select the best answer below.) A. is a critical component of financial planning. B. allows them to have various medical tests if they are needed. C. provides protection against the high expenses of health care that could eliminate wealth. D. limits the individual's potential health problems.
C. provides protection against the high expenses of health care that could eliminate wealth.
