Homework answers / question archive / Chapter 11 Health and Disability Insurance True/False Questions 1)  Affordable health care has become one of the most important issues of our time

Chapter 11 Health and Disability Insurance True/False Questions 1)  Affordable health care has become one of the most important issues of our time

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Chapter 11 Health and Disability Insurance

True/False Questions

1)  Affordable health care has become one of the most important issues of our time.

2. The United States has the lowest per capita medical expenditures of any industrialized country in the world.

3. Currently over 43 million Americans have no health insurance.

4. One reason for the high cost of health care is the use of sophisticated and expensive technologi

5. More than 1,100 different health insurance forms are now in use in the United States.

6. Hospitals, doctors, and patients have enough incentive to make the most economical use of health care services

7. Nothing is being done to contain the costs of health care.

8. The best way to avoid the high cost of illness is to stay well.

9. To stay healthy, get sufficient rest, relaxation, and exercise.

10. The number of Americans without basic health insurance has been decreasing since the 1980s.

11. Approximately 10 million people in the United States have no adequate health insurance.

 12. Health insurance includes both medical expense insurance and disability income insurance 

13. Most people are more likely to lose their income due to death than due to disa 

 14. The fact is that for all age groups disability is more likely than death.

15. Group health insurance plans comprise more than 85 percent of all health insurance issued by health and life insurance companies.

16. Group health insurance will cover you but not your immediate family.

17. Group health insurance covers all of your health insurance needs.

 18. Individual health insurance covers either one person or family.

19. Make sure you have enough insurance, but don't over insure. 

 20. If your group health policy will pay only about half the going rate for surgical procedures in your area, then you don't need individual coverage for the other half.

 21. Very few group health policy contracts have a coordination of benefits provision. 

 22. The coordination of benefits is a method of integrating the benefits payable under more than one health insurance plan so that the benefits received from all sources are limited to 100 percent of allowable medical expenses. 

23. Under federal law, coverage under a former spouse's medical plan can be continued for 36 months if the former spouse works for a company with 20 or more employee. 

24. Employees of the federal government and churches are covered by the Consolidated Omnibus Budget Reconciliation Act of 1986. 

25. Disability income insurance benefits provide regular cash income lost by employees as the result of an accident, illness, or pregnancy.

26. Just about every worker is covered by disability income insurance.

27. Disability income insurance is probably the most coveted form of available insurance protection

28. Disability can cause even greater financial problems than death. 

 29. Basically, the word disability has only one definition. 

30. Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job 

31. Disability benefits begin on the first day you are disabled. 

 32. Generally, disability income policies with shorter waiting periods have lower premiums.

33. You should seek a disability policy that pays benefits for life.

 34. Disability income benefits begin on the 10th day you are disabled.

35. You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

 36. Look for a disability income policy that waives premiums while you are disabled.

 37. The premium for noncancelable and guaranteed renewable coverages is higher, but the coverages are well worth the extra cost.

38. Very few employers provide disability income protection for their employees through the group insurance plans

39. In most cases, your employer pays part or all of the cost of disability income protection plan.

 

 40. Unfortunately, most salaried workers in the United States do not participate in the Social Security programs.

41. A good health insurance plan should offer basic coverage for hospital and doctor bills.

 42. A good health insurance plan should provide at least 120 days' hospital room and board in full.

43. A good health insurance plan should provide at least 30 days' hospital room and board in full.

44. A good health insurance plan should provide at least $100,000 lifetime maximum for each family member

45. A good health insurance plan should pay at least 50 percent for out-of-hospital expenses.

46. A good health insurance plan should impose no unreasonable exclusions.

47. A good health care plan should limit your out-of-pocket expenses to no more than

$1,000 a year.

 48. More people have hospital insurance than any other kind of health insurance.

 49. People often buy surgical expense insurance in combination with hospital expense insurance 

 50. Physician expense insurance coverage never includes visits to the doctor's office, x-rays, and lab tests

 51. Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance.

 52. The maximum benefits payable under major medical insurance are high-up to $1 million. 

 53. A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin.

54. Hospital expense insurance pays part or all of hospital bills for room, board, and other charges.

 55. Surgical expense insurance pays part or all of the surgeon's fees for an operation 

 56. Physician expense insurance helps pay for physician's care that does not involve surgery

 57. Physician expense insurance is expensive, therefore, it should be avoide 

58. Hospital expense insurance, surgical expense insurance, and physician expense insurance are called basic health insurance coverage 

59. The maximum benefits payable under major medical insurance are limited to under $50,000 

 60. A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount. 

 61. A stop-loss provision requires the policyholder to pay up to a certain amount, after which the insurance company pays 100 percent of all remaining covered expense

62. Comprehensive major medical insurance is a type of major medical insurance that has a very high deductible amount.

63. A hospital indemnity policy pays benefits only when you are hospitalized and only to the hospital where the care was provided. 

64. The hospital indemnity policy is a good substitute for basic or major medical protection.

 65. Dread disease and cancer policies are usually very good values.

66. Long-term care insurance was virtually unknown 25 years ago, but now it is growing faster than any other form of insuranc

 67. Most health insurance policies are sold to individuals and families

68. Blue Cross plans provide for surgical and medical services performed by physicians.

69. Blue Shield plans provide hospital care benefits on essentially a "service type" basis.

70. Preferred Provider Organizations combine the best elements of the fee-for-service and HMO systems

71. Public opinion polls consistently show that Americans are reasonably happy with the nation's health care system 

72. Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible.

73. Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government.

74. Medicaid is administered by each state within certain broad federal requirements and guidelines.

75. Medicare does not cover the expenses of private-duty nursing care.

76. Two sources of government health insurance are Medicare and Medicaid.

77. President Franklin D. Roosevelt established Medicare for people who are at least 60 years old.

78. Local IRS offices take applications for Medicare and provide information about the program.

79. Medicare has two parts: hospital insurance (Part A) and medical insurance (Part B).

80. Hospital insurance (Part A) is financed from a portion of the Social Security tax.

 81. Medicare hospital insurance (Part A) helps pay for doctors' services and a variety of other medical services and supplies not covered by hospital insurance 

 82. Medicare medical insurance (Part B) helps pay for doctors' services and a variety of other medical services and supplies not covered by hospital insurance. 

 83. To get medical insurance (Part B) you must sign for it and pay a monthly premium. 

 84. Medicare covers all medical costs but only if you are at least 65 years of age.

85. Skilled nursing care is approved and covered by Medicare

86. Medicare covers routine checkups, dental care, most immunizations, cosmetic surgery, routine foot care, eyeglasses, and hearing aids. 

 87. Medicare covers the cost of care received outside the United States, Canada, and Mexico.

 88. Medicare was never intended to pay all medical costs.

89. Medigap or MedSup insurance is not sold or serviced by the federal government or state governments

 90. Medicare Supplement insurance is a government-sponsored program. 

 91. Title XIX of the Social Security Act provides for a program of medical assistance to certain low-income individuals and families.

92. Medicaid is financed by both state and federal funds

93. Very few members of the Medicaid population are also covered by Medicare.

 94. Medicaid differs from Medicare because eligibility for Medicaid depends on having very low income and assets.

95. Once a person is eligible, Medicaid provides more benefits than does Medicare.

96. Because Medicaid coverage is very limited, people using it need to purchase supplemental insurance.

97. Nearly 70% of consumers believe the Medicare program would not go broke if fraud and abuse were eliminated 

98. The Department of Health and Human Services maintains one of the richest and most reliable sources of information on the Internet.

 99. Unfortunately, the federal government does not provide any medical information on the Internet.

100. Healthfinder, Medlineplus, and JIH Health Information are just a few sources provided by the American Medical Association.

Multiple Choice Questions

101. What has become one of the most important issues of our time?

A) Affordable health care

B) Affordable housing

C) Affordable automobiles

D) Affordable vacations

102. Which country has the highest per capita medical expenditures of any industrialized country in the world?

A) Australia

B) Britain

C) Canada

D) Denmark

E) U.S.A. 

103. Which one(s) of the following groups has (have) undertaken innovative activities to contain the costs of health care?

A) Employers

B) labor unions

C) health insurers

D) Consumers

E) All of the above have undertaken activities.

104. What are some possible reasons for high and rising costs of health?

A) the use of sophisticated and high-priced equipment

B) medical personnel who command high earnings

C) innovative but costly treatment for some illnesses

D) the increasing number and longevity of elderly people.

E) All are possible reasons for high health care cost

105. What can you do to reduce your health care costs?

A) Stay well.

B) Gain a little extra weight.

C) Smoke and drink.

D) Live dangerously.

E) Don't seek medical care.

106. The nation's health care costs in 2002 were estimated at $ billion.

A) 1,540 (or $1.5 trillion)

B) 638

C) 538

D) 480

E) 378 

107. Why have a growing number of students been without health insurance?

A) Because insurance companies refuse to insure them

B) Because students are young and healthy

C) Because students don't need health insurance

D) Because students don't care if they get sick

E) Because an older student population is not covered by family policies

108. Health insurance includes

A) life insurance.

B) Disability insurance.

C) personal liability insurance.

D) An annuity.

E) An endowmen. 

109. Because you are young and healthy now, you may overlook the very real need for

A) Disability income insurance.

B) health insurance.

C) Dental insurance.

D) vision care insurance.

E) liability insurance.  

110. Most health insurance policies in the United States are sold to

A) victims of communicable diseases.

B) individuals with families.

C) single individuals with no dependents.

D) Employees and their dependents.

E) Employers, who in turn offer the benefits to employees.

111. Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

A) group health

B) individual health

C) hospital expense

D) surgical expense

E) physician's expense

112. Which type of health insurance policy may not cover all of your health insurance needs or may deny benefits if you lose your job?

A) group health

B) individual health

C) Basic health

D) Comprehensive medical

E) Disability income

113. Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

A) Comprehensive major medical

B) major medical expense

C) physician's expense

D) Disability income

E) surgical expense 

114. Which type of insurance is probably the most neglected form of available insurance protection?

A) life

B) liability

C) Disability

D) Car

E) home and property

115. Definition of disability

A) is universally accepted.

B) varies.

C) is standardized by American Council of Life Insurance.

D) is provided by the Insurance Information Institute.

116. Good disability plans pay when you are

A) unable to work at your regular job.

B) unable to work at any job.

C) on an extended vacation.

D) ill even for a short period.

E) fired from your regular job.

117. With disability income insurance, benefits usually begin

A) on the first day of disability.

B) Between 30 and 90 days after the disability occurs.

C) on the 10th day of disability.

D) one year after the start of the disability.

118. The waiting period in disability income insurance is called period.

A) Exclusion

B) no benefit

C) Coverage

D) trade-off

E) Elimination

119. Generally, disability income policies with longer waiting periods

A) have higher premiums.

B) have lower premiums.

C) have about the same premium.

D) Are issued by smaller insurance companies.

E) Are issued by larger insurance companies.

120. The premium for noncancelable and guaranteed renewable disability income insurance is higher,

A) therefore, younger people should skip these coverages.

B) hence, the insurance companies enjoy better profit margins.

C) therefore, very few older workers should carry these coverages.

D) But the coverages are well worth the extra cost. 

121. In most employer-sponsored disability income insurance plans,

A) your employer pays part or all of the cost.

B) you pay all the cost.

C) your union pays all the cost.

D) the Social Security Administration pays most of the premium.

E) the Veterans Administration foots the bill.

122. The availability and extent of disability income insurance

A) is better on the West Coast than on the East Coast.

B) does not vary much in the United States.

C) varies widely in different parts of the country, depending on employers.

D) is mandated by federal laws.

E) is mandated by state laws.

123. Most insurers limit benefits from all sources to no more than percent of your take-home pay.

A) 30-40

B) 40-50

C) 50-60

D) 60-70

E) 70-80 

124. Which type of health insurance pays part or all of hospital bills for room, board, and other charges?

A) surgical expense

B) hospital expense

C) physician's expense

D) Basic health

E) major medical

125. Which type of health insurance pays part or all of the surgeon's fee for an operation?

A) surgical expense

B) hospital expense

C) physician's expense

D) Basic expense

E) major medical expens

126. Which type of health insurance pays for physician's care that does not involve surgery?

A) surgical expense

B) hospital expense

C) physician's expense

D) Basic expense

E) major medical expense

127. A good health insurance plan should

A) provide at least one year's hospital room and board in full.

B) provide at least $2 million lifetime maximum for each family member.

C) pay 100 percent for out-of-hospital expenses.

D) offer basic coverage for hospital and doctor bills. 

128. Which type of insurance is usually bought in combination with hospital and surgical insurance?

A) Disability income

B) Comprehensive major medical

C) major medical expense

D) hospital indemnity

E) physician's expense

129. Which type of insurance protects against the large expenses of a serious injury or a long illness?

A) Disability income

B) major medical expense

C) hospital indemnity

D) physician's expense

E) interim medical 

130. A good health insurance plan should

A) offer basic coverage for hospital and doctor bills.

B) provide at least 120 days' total room and board in full.

C) provide at least $1 million lifetime maximum for each family member.

D) impose no unreasonable exclusions.

E) offer all of the above. 

131. Which one of the following provisions requires that the policyholder pay a basic amount before the policy benefits begin?

A) Coinsurance

B) stop loss

C) Deductible

D) self insurance

E) incontestable

132. is a type of major medical insurance that has a very low deductible amount and is offered without any separate basic plan.

A) Comprehensive major medical insurance

B) Major Medical expense insurance

C) Physician's expense insurance

D) Hospital expense insurance

E) Surgical expense insurance 

133. Which health insurance policy pays benefits only when you are hospitalized, but pays these benefits in cash which you can use as you like?

A) hospital indemnity

B) interim or short-term

C) Disability income

D) Comprehensive major medical

E) major medical expense

134. Which type of health policy is like buying a lottery ticket?

A) major medical expense insurance

B) Comprehensive expense insurance

C) interim expense insurance

D) hospital indemnity insurance

E) physician's expense insurance 

135. Dental expense insurance provides reimbursement for

A) oral examinations.

B) fillings.

C) Extractions.

D) inlays.

E) All of the above provide reimbursement. 

136. According to your textbook, supplemental hospital indemnity plans

A) are almost always excellent buys.

B) should never be purchased.

C) do not justify the premium cost.

D) should be purchased only by older people.

E) are meant for couples with two or three children. 

137. Which type of health insurance is simply a bad buy?

A) Individual health insurance

B) Group health insurance

C) Dread disease and cancer policy

D) Dental insurance

E) Vision insurance

138. In choosing health insurance, ideally, you should

A) get a basic plan and a major supplementary plan.

B) get dental and vision plans.

C) buy dread disease and cancer insurance plans.

D) purchase nursing home insurance.

E) purchase accident insurance.

139. Which plan provides benefits for surgical and medical services performed by physicians?

A) Blue Cross

B) Blue Shield

C) Medicare

D) Medicaid

E) HMO

140. Health insurance is available from

A) private insurance companies.

B) Blue Cross and Blue Shield.

C) HMOs.

D) PPOs.

E) All of the above offer health insurance.

141. Which one of the following is not a source of health insurance?

A) fraternal organizations

B) trade unions

C) government programs such as Medicare

Health Insurance Industry Association 

142. Most private insurance companies sell health insurance policies to

A) individuals.

B) families.

C) Employers.

D) Employees.

143. Which plan provides hospital care benefits on essentially a "service type" basis?

A) Blue Cross

B) Blue Shield

C) managed care

D) Medicare

E) Medicaid

144. Which plan provides benefits for surgical and medical services performed by physicians?

A) Blue Cross

B) Blue Shield

C) home health agencies

D) home health associations

145. Which health care institution directly employs or contracts with selected medical care specialists to give you health care services in exchange for a fixed, prepaid monthly premium?

A) Blue Cross

B) Blue Shield

C) Medicare

D) Medicaid

E) HMO

146. Which health care program is administered by the Centers for Medicare and Medicaid, Services a federal agency?

A) Blue Cross

B) Blue Shield

C) Medicare

D) Medicaid

E) HMO

147. Hospital insurance (Part A. and medical insurance (Part B. are characteristics of A) Blue Cross.

B) Blue Shield.

C) Medicare.

D) Medicaid.

E) HMO. 

148. What is covered by Medicare?

A) intermediate and custodial nursing care

B) out-of-hospital prescription drugs

C) private-duty nursing

D) physician charges above Medicare's approved amount

E) None of the above are covered.

149. Which health care plan is administered by each state within certain broad federal requirements and guidelines?

A) Blue Cross

B) Blue Shield

C) Medicare

D) Medicaid

E) HMO 

150. Hospital insurance (Part A. of Medicare is financed from part of the 

taxes.

A) state income

B) federal excise

C) individual income

D) Corporate income

E) Social Security

151. Medigap is sold or serviced by

A) Medicare.

B) Medicaid.

C) private insurance companies.

D) Health Care Financing Administration.

E) National Institutes of Health.

152. Which one of the following is a correct statement about nation's health care system?

A) Most Americans are very satisfied with the nation's health care system.

B) Most Americans are somewhat satisfied.

C) Most Americans don't care one way or the other.

D) Americans are unhappy with our health care system.

E) All Americans enjoy the best health care available anywhere in the world. 

153. Which one of the following is a source of government health insurance?

A) Blue Cross

B) Blue Shield

C) Medicare

D) HMO

E) PPO

154. Which one of the following is a source of government health insurance?

A) Blue Cross

B) Blue Shield

C) National Institutes of Health

D) HMO

E) Medicaid

155. Medicare, a federal health insurance program was established in 1965 for

A) people 65 or older.

B) people of any age with permanent kidney failure.

C) people with certain disabilities.

D) all of the above.

156. Jose Gonzales just turned 65 this year. He should apply for Medicare benefits at a local

A) office of the National Institutes of Health.

B) IRS office.

C) Social Security office.

D) county medical hospital.

E) None of the above

157. Hospital insurance is which part of Medicare?

A) Part A

B) Part B

C) Part C

D) Part D

E) None of the above 

158. Medical insurance is which part of Medicare?

A) Part A

B) Part B

C) Part C

D) Part D

E) None of the above

159. Which one of the following is not covered by Medicare?

A) Care in a skilled nursing facility beyond 100 days per benefit period.

B) Intermediate and custodial nursing care as would be needed in a nursing home.

C) Private duty nursing

D) Care received in England

E) All of the above would not be covered by Medicare.

160. Hospital insurance (Part A) of Medicare helps pay for

A) inpatient hospital care

B) inpatient care in a skilled nursing facility.

C) home health care.

D) hospice care.

E) all of the above.

161. Medicare medical insurance (Part B) helps pay for

A) inpatient hospital care

B) doctors' services and other medical services and supplies not covered by hospital insurance.

C) home health care.

D) hospice care.

E) none of the above.

162. Medicare medical insurance (Part B) for people 65 or over is

A) mandatory

B) financed by corporations.

C) voluntary, and you must sign up for coverage.

D) state supported and partially funded by the National Institutes of Health.

E) None of the above.

163. Which of the following is correct about Medigap or MedSup insurance?

A) It is sold and serviced by the federal government.

B) It is sold and serviced by the state government.

C) It is sold and serviced by both the federal and state governments.

D) Private insurance companies sell Medicap Insurance policies.

E) None of the above. 

164. Which of the following statement is correct about Medicaid

A) The Social Security Act created Medicaid in 1965.

B) Medicaid is a program of medical assistance to certain low-income individuals and families.

C) Medicaid is administered by each state within certain federal guidelines.

D) Medicaid if financed by both state and federal funds.

E) All of the statements are correct. 

165. Which of the following statements is correct about Medicaid?

A) Many members of the Medicaid population are also covered by Medicare.

B) Once eligible, Medicaid provides more benefits than does Medicare.

C) Medicaid coverage is so comprehensive, people using it do not need to purchase supplemental insurance.

D) Medicaid is financed by both state and federal funds.

E) All of the above.

Essay Questions

166. Why are the costs of health insurance and health care increasing?

167. What is the importance of health insurance and disability insurance in personal financialplanning?

168. What is disability income insurance? What are the major sources of disability income insurance?

169. What are the five basic types of health insurance? What are their benefits and limitations?

170. What are private sources of health care insurance?

171. What are government sources of health care insurance?