U.E.T Taxila

COURSE TITLE : FREE 101

TRUE/FALSE QUESTIONS (1 TO 32)

Chapter 9

1)Health insurance is a form of protection that eases the financial burden people may experience as a result of someone's death.

2. All group health insurance plans provide the same level of protection.

3. COBRA and The Health Insurance Portability and Accountability Act of 1007 have improved health insurance coverage options for individuals and families.

4. Surgical expense coverage for health insurance includes surgeon's fees in a doctor's office.
5. A deductible is the amount you must pay before benefits become payable by the insurance company.

6. Long-term care insurance is used to pay for a stay in a nursing home but not for help at home.
7. The copayment provision deals with the amount that someone will pay for a bill such as 20 percent coinsurance

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8. The benefit limits provision identifies the minimum benefits that will be paid for days spent in the hospital.

9. With a guaranteed renewable health insurance policy, the insurer is permitted to raise premiums for all members of a group.

10. A health insurance policy that pays you back for actual expenses is called an indemnity policy.

11. A health insurance policy that pays you back for actual expenses is called a reimbursement policy.

12. Some policies consider the average fee for a service in a particular geographical area then use that amount to set a minimum payment for policyholders.

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13. Blue Cross and Blue Shield are two types of HMOs. .
14. A PPO is a type of managed care plan.
15. A PPO is another name for an HMO.

16. An employer self-funded health plan requires a low level of financial assets.

17. A Flexible Spending Account is funded by an employer.
18. A Health Reimbursement Account is an employer-funded plan.

19. FSAs, HRAs, and HSAs all provide tax advantages for health expenses.
20. If you have Medicare Part A and Medicare Part B, you should not need Medicare Part C.
21. Medicare typically covers routine checkups.

Medicare excludes routine checkups, dental care, most immunizations, and more.

22. Medicare is offered to certain low-income individuals and families.

Medicaid is offered to certain low-income individuals and families.

23. Disability income insurance covers your medical expenses when you are disabled.
24. A good disability income insurance plan will provide benefits if you cannot work at any job.

A good plan considers your regular job, not any job.

25. The financial problems caused by death are greater than those caused by disability.

26. The definition for Disability is stricter for Social Security than for employer plans.
27. The period before you can receive benefits in a disability plan is called the probationary period.

28. A disability policy with a longer elimination period typically charges lower premiums than a policy with a short elimination period.

29. Disability income insurance policies are required to provide benefits for disabled policyholders until age 65.

30. The United States has the fifth highest per capita medical expenditures in the world.
31. Administrative costs in the United States consume half of the health care dollars spent.

32. Health care costs have decreased because of aging baby boomers using fewer health care services.

33. What is the primary purpose of medical expense insurance?
34. Which of the following is correct?
35. Most people receive health insurance from
36. The Health Insurance Portability and Accountability Act of 1996
37. Coordination of benefits (COB) applies to
38. Which of the following about individual health insurance policies is correct?
39. Which of the following about individual health insurance policies is NOT correct?
40. COBRA stands for

41. The type of health insurance coverage that pays for some or all of the costs of room and board is
42. The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is
43. The type of health insurance coverage that may cover a specific amount for an operation is
44. The type of health insurance coverage that takes up where basic health insurance coverage leaves off is
45. Fran is interested in purchasing health insurance that limits the total out-of-pocket amount that she will have to pay. She should consider a
46. Jenny wants health insurance that limits the amount that she must pay before the insurance starts paying benefits. She is concerned about a
47. Miguel is concerned that the health insurance option he is considering plays upon unrealistic fears. He is most concerned about
48. 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. She should review the
49. The insurance that helps pay extensive hospital, surgical, medical, and other bills with a low deductible is known as a
50. Which of the following is NOT a type of health insurance available to individuals or employees?

51. This health insurance provision lets your insurer make direct payments to your doctor or hospital.
52. Which of the following is  about long-term care insurance?
53. This health insurance provision sets limits on the amount of repayment for certain services.
54. A health insurance policy with this provision lists coverage in terms of services, not dollar amounts.
55. Which of the following is INCORRECT about dread disease policies?
56. What is a typical copayment amount for individuals?
57. A policy that pays you back for actual expenses is called
58. After you have reached a certain limit, the insurance company covers 100 percent of any additional cost. This is called
59. The set amount that you must pay toward medical expenses before the insurance company pays benefits is called
60. A health insurance policy that will cover only a fixed amount of an expense is called
61. Brittany and Brandon are both charged $250 for an office visit to the same specialist. Brittany's reimbursement policy has a deductible of $300. Once she has met the deductible, the policy will cover the full cost of her visits. Brandon's indemnity policy will pay him $150, the maximum amount his plan provides for a visit to any specialist. Which of the following is correct?

62. A quality health insurance plan should do all of the following except
63. Which of the following is NOT a private health care plan?
64. Blue Cross and Blue Shield are
65. Xavier's employer offers a health plan that stresses preventative services and covers routine immunizations and checkups, screening programs, and diagnostic tests. What kind of plan does his employer offer?
66. 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?
67. This type of plan combines features of HMOs and PPOs. It uses a network of participating physicians and medical professionals who have contracted to provide services for certain fees. What kind of plan does his employer offer?
68. Which of the following is most likely to use a health maintenance organization?
69. Who is most likely to use a home health care agency?
70. Anna contributes pre-tax 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?

71. 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?
72. 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?
73. Individuals over the age of 65 who are eligible for federal government health plan coverage may also be interested in purchasing
74. Jack needs comprehensive medical coverage, however, his income is quite low. What plan should he investigate?
75. Medicare covers
76. A Medigap policy fills the gap between medical costs and payments from
77. Medicaid covers

78. Which of the following is INCORRECT?

79. All of the following are sources of disability income except

80. How much income is usually replaced with a private income insurance program for a disability?

81. Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from
82. Mark was severely injured 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
83. 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 percent of take-home pay with an elimination period of 60 days and coverage to age 65. Given this information, which of the following is  for Cameron?
84. Which of the following is  about the elimination period?
85. Disability income insurance plans offer benefits

86. 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
87. Rising health costs are due to all except
88. The average per employee cost for health care in 2008 was more than
89. How many people in the United States do not have health insurance?
90. Which of the following is NOT correct?
91. Georgia has a health insurance policy that includes a deductible of $750 and a coinsurance of 20 percent. If her total bill is $2,750, how much will she be required to pay?

92. Larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of 20 percent. If his total bill is $4,000, how much will his insurance pay?
93. Peter has a health insurance policy that includes a deductible of $1,000, a coinsurance of 20 percent and a stop-loss of $5,000. If his total bill is $25,000, how much will he pay?