Exam Questions Ch11 Health, Disability, and Long-Term Care - Personal Finance 13e Answer Key + Test Bank by Jack Kapoor. DOCX document preview.
Personal Finance, 13e (Kapoor)
Chapter 11 Health, Disability, and Long-Term Care Insurance
1) The United States has the lowest per capita medical expenditures of any industrialized country in the world.
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
2) Affordable health care has become one of the most important social issues of our time.
Difficulty: 1 Easy
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
3) One reason for the high and rising costs of health care is the use of sophisticated and expensive technologies.
Difficulty: 1 Easy
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
4) One way to reduce your own medical costs is to stay well.
Difficulty: 1 Easy
Topic: Personal costs of health care
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
5) The prescription to stay healthy includes getting sufficient rest, relaxation, and exercise.
Difficulty: 1 Easy
Topic: Personal costs of health care
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
6) Health club membership is a form of protection to alleviate the financial burdens individuals suffer from illness or injury.
Difficulty: 2 Medium
Topic: Personal costs of health care
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
7) Group health insurance will cover you, but not your immediate family.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
8) Individual health insurance covers either one person or a family.
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
9) Very few group health insurance policies have a coordination of benefits provision.
Difficulty: 2 Medium
Topic: Coordination of benefits
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
10) A good health insurance plan should offer basic coverage for hospital and doctor bills.
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
11) A good health insurance plan should impose no unreasonable exclusions.
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
12) More people have hospital insurance than any other kind of health insurance.
Difficulty: 1 Easy
Topic: Insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
13) People often buy surgical expense insurance in combination with hospital expense insurance and physician expense insurance.
Difficulty: 1 Easy
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
14) Physician expense insurance coverage excludes visits to the doctor's office, x-rays, and lab tests.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
15) Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
16) A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin.
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
17) Hospital expense insurance pays part or the full amount of hospital bills for room, board, and other charges.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
18) Surgical expense insurance pays part or the full amount of the surgeon's fees for an operation.
Difficulty: 1 Easy
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
19) Physician expense insurance helps pay for physician's care that does not involve surgery.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
20) A recent study by Americans for Long-Term Care Security found that one out of five Americans over age 30 is at risk of needing some form of long-term care within the next 12 months.
Difficulty: 3 Hard
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
21) A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount.
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
22) 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 expenses.
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
23) A hospital indemnity policy pays benefits directly to the hospital only when you are hospitalized.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
24) The hospital indemnity policy is a good substitute for basic or major medical protection.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
25) Dread disease and cancer policies are usually very good values.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
26) Long-term care insurance was virtually unknown 50 years ago, but it is now growing faster than any other form of insurance.
Difficulty: 1 Easy
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
27) Blue Cross plans provide for surgical and medical services performed by physicians.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
28) Blue Shield plans provide hospital care benefits on essentially a "service type" basis.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
29) Preferred provider organizations combine the best elements of the fee-for-service and HMO systems.
Difficulty: 1 Easy
Topic: Preferred provider and other organizations
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
30) Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
31) Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government.
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
32) Medicaid is administered by each state within certain broad federal requirements and guidelines.
Difficulty: 2 Medium
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
33) Medicare does not cover the medical expenses of private-duty nursing care.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
34) The two best-known sources of government health insurance are Medicare and Medicaid.
Difficulty: 2 Medium
Topic: Medicare and its supplements; Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
35) Medicare originally had two parts: hospital insurance and medical insurance.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
36) Medicare hospital insurance is financed from a portion of the Social Security tax.
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
37) To get Medicare medical insurance, you must sign up for it and pay a monthly premium.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
38) Care in a skilled nursing facility beyond 100 days per benefit period is approved and covered by Medicare.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
39) Medicare covers routine checkups, dental care, most immunizations, cosmetic surgery, routine foot care, eyeglasses, and hearing aids.
Difficulty: 3 Hard
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
40) Medicare covers the cost of care received outside the United States, Canada, and Mexico.
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
41) Medicare was never intended to pay all medical costs.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
42) Medicare supplement insurance is a government-sponsored program.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
43) Title XIX of the Social Security Act provides for a program of medical assistance to certain low-income individuals and families, known as Medicaid.
Difficulty: 2 Medium
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
44) Medicaid is financed by both state and federal funds.
Difficulty: 1 Easy
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
45) Very few members of the Medicaid population are also covered by Medicare.
Difficulty: 2 Medium
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
46) Medicaid differs from Medicare because eligibility for Medicaid depends on having very low income and assets.
Difficulty: 3 Hard
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
47) Because Medicaid coverage is very limited, people using it need to purchase supplemental insurance.
Difficulty: 3 Hard
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
48) Disability income insurance provides regular cash income lost by employees as the result of an accident or illness.
Difficulty: 2 Medium
Topic: Disability insurance coverages and provisions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
49) Once a person is eligible, Medicaid provides more benefits than does Medicare.
Difficulty: 3 Hard
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
50) Disability income insurance is probably the least neglected form of available insurance protection.
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
51) Every year, 12% of the adult U.S. population suffers a long-term disability.
Difficulty: 3 Hard
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
52) 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.
Difficulty: 1 Easy
Topic: Disability income policy comparisons
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
53) Disability benefits begin on the first day you become disabled.
Difficulty: 2 Medium
Topic: Disability insurance coverages and provisions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
54) Generally, disability income policies with shorter waiting periods have lower premiums.
Difficulty: 2 Medium
Topic: Disability insurance coverage considerations
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
55) You should seek a disability income policy that pays benefits for life.
Difficulty: 2 Medium
Topic: Disability insurance coverage considerations
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
56) You should look for a disability income policy that waives premium payments while you are disabled.
Difficulty: 2 Medium
Topic: Disability insurance coverage considerations
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
57) The premium for noncancelable and guaranteed renewable coverage for a disability income policy is higher, but the coverages are well worth the extra cost.
Difficulty: 2 Medium
Topic: Disability insurance coverage considerations
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
58) Many employers provide disability income protection for their employees through group insurance plans.
Difficulty: 1 Easy
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
59) Most salaried workers in the United States do not participate in the Social Security program.
Difficulty: 1 Easy
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
60) It is best for you to get routine care and recommended preventive services from a primary care provider rather than a hospital's emergency department.
Difficulty: 2 Medium
Topic: Health insurance claims and payments
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
61) 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) United States
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
62) Which of the following groups has undertaken innovative activities to contain the costs of health care?
A) Employers
B) Labor unions
C) Health insurers
D) Consumers
E) All of these
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
63) Which of the following is an innovative way concerned groups are containing health care costs?
A) Incentives to encourage preventive care
B) Encouragement of prepaid group practices
C) Establishment of community health education programs
D) Encouragement by doctors for patients to pay cash for routine medical care
E) All of these
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
64) What are some possible reasons for high and rising costs of health care?
A) The use of sophisticated and expensive technologies
B) Rapid average earnings growth for health care professionals
C) Duplication of tests
D) The increasing number and longevity of elderly people
E) All of these
Difficulty: 1 Easy
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Analyze
Accessibility: Keyboard Navigation
Gradable: automatic
65) What is one of the best ways for you to avoid the high cost of illness?
A) Get sufficient rest.
B) Gain a little extra weight.
C) Smoke and drink.
D) Drive dangerously.
E) Avoid relaxation.
Difficulty: 1 Easy
Topic: Personal costs of health care
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember; Understand
Accessibility: Keyboard Navigation
Gradable: automatic
66) Most group health insurance plans in the United States are sponsored by:
A) victims of communicable diseases.
B) individuals with families.
C) single individuals with no dependents.
D) elderly individuals.
E) employers.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
67) Which type of health insurance plan may not provide benefits for the major portion of your medical care bills?
A) Group health insurance
B) Life insurance
C) Medicare
D) Medicaid
E) Disability income insurance
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
68) Harry Morgan gets a bad case of the flu and ends up in the hospital for three days. Which part of his basic health insurance coverage should help pay for this stay?
A) Hospital expense
B) Surgical expense
C) Physician expense
D) Major medical expense
E) Medicare Part B
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Analyze
Accessibility: Keyboard Navigation
Gradable: automatic
69) Joe Johnson needs surgery for appendicitis. Which part of his basic health insurance coverage should help pay for the surgeon's fees?
A) Hospital expense
B) Surgical expense
C) Physician expense
D) Major medical expense
E) Medicare Part B
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Analyze
Accessibility: Keyboard Navigation
Gradable: automatic
70) Julie Cumbie was playing softball and got hurt sliding into second base. She gets an x-ray at her doctor's office to make sure her ankle isn't broken. Which part of her basic health insurance coverage should help pay for this x-ray?
A) Hospital expense
B) Surgical expense
C) Physician expense
D) Major medical expense
E) Medicare Part B
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Analyze
Accessibility: Keyboard Navigation
Gradable: automatic
71) Jamal Walker developed a serious infection and spent 6 months in his hospital's intensive care unit. What part of his health insurance policy would be the most useful for helping to pay for this?
A) Hospital expense
B) Surgical expense
C) Physician expense
D) Major medical expense
E) Medicare Part B
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Analyze
Accessibility: Keyboard Navigation
Gradable: automatic
72) Nathan Drummond has three different insurance policies. He has been injured in an accident and has incurred $30,000 in medical bills. There is a provision in all of his insurance contracts that ensures the total benefits he receives from all sources is limited to 100% of allowable medical expenses. What is this provision called?
A) Coordination of benefits
B) Deductible
C) Coinsurance
D) Stop-loss provision
E) Waiver of premium
Difficulty: 2 Medium
Topic: Coordination of benefits
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
73) Sophie Bennett must pay $500 for doctor's visits each year before her insurance company will make any payments for doctor's visits. What is this requirement called?
A) Coordination of benefits
B) Deductible
C) Coinsurance
D) Stop-loss provision
E) Waiver of premium
Difficulty: 2 Medium
Topic: Insurance terminology
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
74) Sophie Bennett is required to pay 20 percent of her medical costs after the deductible has been paid. What is this requirement called?
A) Coordination of benefits
B) Deductible
C) Coinsurance
D) Stop-loss provision
E) Waiver of premium
Difficulty: 2 Medium
Topic: Insurance terminology
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
75) Sophie Bennett has personally paid a total of $6,000 in medical costs this year, which is the out-of-pocket limit listed in her insurance plan. At this point, there is a provision in her insurance contract that requires her insurance company to pay 100% of her medical costs for the remainder of the year. What provision is this likely to be?
A) Coordination of benefits
B) Hospital indemnity clause
C) Coinsurance
D) Stop-loss provision
E) Major medical expense provision
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
76) Raymond Carter has a type of all-inclusive health insurance that has a very low deductible and pays for hospital, surgical, medical, and other bills under one plan. What type of insurance does he have?
A) Comprehensive major medical
B) Hospital indemnity
C) Long-term care
D) Cancer
E) Disability income
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
77) Chris Jones has an insurance policy that pays benefits to him in cash when he is hospitalized. What type of insurance would this be?
A) Comprehensive major medical
B) Hospital indemnity
C) Long-term care
D) Cancer
E) Disability income
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
78) Karen Bloomberg was seriously injured in a car accident and is paralyzed from the waist down. Luckily, she has an insurance policy that will pay for someone to come in and help with her daily activities such as bathing, dressing, and household chores. What type of insurance policy is this likely to be?
A) Comprehensive major medical
B) Hospital indemnity
C) Long-term care
D) Cancer
E) Disability income
Difficulty: 2 Medium
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
79) Joan Wilder receives a phone call from a salesperson who tries to sell her an insurance policy by scaring her about her high risk of death from this disease. She knows that this type of insurance policy is notoriously a poor value, so she politely declines. What type of insurance policy did this salesperson likely try to sell her?
A) Comprehensive major medical
B) Hospital indemnity
C) Long-term care
D) Cancer
E) Disability income
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
80) Which provision in a health insurance policy states that you will pay a flat dollar amount each time you receive a covered medical service?
A) Daily benefit
B) Benefit period
C) Policy limit
D) Elimination period
E) Copayment
Difficulty: 1 Easy
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
81) Marcia Fuller has an insurance policy that she and her three daughters, ages 5, 9, and 11, are entitled to benefits under. Which provision in her insurance policy is defined by this list of covered members?
A) Eligibility
B) Assigned benefits
C) Benefit limits
D) Guaranteed renewable
E) Exclusions and limitations
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
82) Dean Thomas has an insurance policy that cannot be cancelled unless he fails to pay his premium when due. Which provision in his insurance policy would specify this?
A) Eligibility
B) Assigned benefits
C) Benefit limits
D) Guaranteed renewable
E) Exclusions and limitations
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
83) Darren Chase has an insurance policy that will only pay for a maximum of 60 days of hospitalization during a year. Which provision in his insurance policy would specify this?
A) Eligibility
B) Assigned benefits
C) Benefit limits
D) Guaranteed renewable
E) Exclusions
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
84) Benjamin Northcutt has an insurance policy that does not cover cosmetic surgery like the nose job he would like to have. Which provision in his insurance policy would specify this?
A) Eligibility
B) Assigned benefits
C) Benefit limits
D) Guaranteed renewable
E) Exclusions and limitations
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
85) A good health insurance plan should:
A) impose unreasonable exclusions.
B) provide at least a $2 million lifetime maximum for each family member.
C) pay 100 percent for out-of-hospital expenses.
D) provide at least 120 days' hospital room and board in full.
E) limit your out-of-pocket expenses to no more than $1,000 per year.
Difficulty: 3 Hard
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
86) Which type of insurance is usually bought in combination with hospital expense and surgical expense insurance?
A) Disability income
B) Comprehensive major medical
C) Umbrella
D) Hospital indemnity
E) Physician's expense
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
87) Which type of health insurance includes two features (a deductible provision and a coinsurance provision) to help keep the premium within the policyholder's means?
A) Disability income
B) Major medical expense
C) Hospital indemnity
D) Physician's expense
E) Surgical expense
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
88) A good health insurance plan should:
A) pay at least 90 percent for out-of-hospital expenses after a yearly deductible.
B) provide at least 100 days' hospital room and board in full.
C) provide at least a $1 million lifetime maximum for each family member.
D) impose unreasonable exclusions.
E) limit out-of-pocket expenses to no more than $10,000 a year.
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
89) 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
Difficulty: 2 Medium
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
90) ________ is a type of major medical insurance that has a very low deductible amount and is offered without a 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
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
91) Which health insurance policy pays benefits only when you are hospitalized, but pays these benefits in cash which you can use for medical, nonmedical, or supplementary expenses?
A) Hospital indemnity
B) Interim or short-term
C) Disability income
D) Comprehensive major medical
E) Major medical expense
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
92) Dental expense insurance provides reimbursement for:
A) oral examinations.
B) fillings.
C) extractions.
D) inlays.
E) All of these
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
93) According to your textbook, the average benefit paid under a hospital indemnity policy:
A) is almost always excellent buys.
B) should be purchased at an early age.
C) does not justify the premium cost.
D) should be purchased only by older people.
E) is meant for couples with two or three children.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
94) Which type of health insurance is notoriously a poor value?
A) Individual health
B) Group health
C) Dread disease
D) Dental
E) Vision
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
95) Which of the following statements is not true?
A) Physician expense insurance coverage normally excludes visits to the doctor's office, x-rays, and lab tests.
B) Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance.
C) A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin.
D) A good health insurance plan should impose no unreasonable exclusions.
E) A hospital indemnity policy is not a substitute for basic or major medical protection.
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
96) Which one of the following would be your best selection if you could only choose one of the following types of insurance?
A) A basic plan combined with a major medical expense plan
B) Combined dental and vision plan
C) Dread disease and cancer plan
D) Long-term care
E) Accident
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
97) Which type of insurance protects your ability to earn income?
A) Life
B) Liability
C) Disability income
D) Car
E) Home and property
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
98) Health insurance is not available from:
A) private insurance companies.
B) Blue Cross and Blue Shield.
C) HMOs.
D) PPOs.
E) home health care agencies.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
99) Which one of the following is not a provider of health insurance?
A) Fraternal organizations
B) Trade unions
C) Government programs such as Medicare
D) Health Insurance Industry Association
E) Blue Cross and Blue Shield
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
100) Most private insurance companies sell health insurance policies to ________, who in turn offer them as fringe benefits.
A) individuals
B) families
C) employers
D) employees
E) non-profit organizations
Difficulty: 3 Hard
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
101) Which health insurance plan directly employs or contracts with selected physicians to provide managed health care services in exchange for a fixed, prepaid monthly premium?
A) Blue Cross
B) Blue Shield
C) Medicare
D) Medicaid
E) HMO
Difficulty: 2 Medium
Topic: Health maintenance organizations
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
102) Hospital insurance (Part A) and medical insurance (Part B) are characteristics of:
A) Blue Cross.
B) Blue Shield.
C) Medicare.
D) Medicaid.
E) HMO.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
103) Which medical expense is covered by Medicare?
A) Acupuncture
B) Immunizations
C) Private-duty nursing
D) Routine checkups
E) Hospice care
Difficulty: 3 Hard
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
104) Medigap is sold or serviced by:
A) Medicare.
B) Medicaid.
C) private insurance companies.
D) the federal government.
E) State governments.
Difficulty: 3 Hard
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
105) Which one of the following is a correct statement about the administrative costs of the health care system in the U.S.?
A) Consumes 1% of healthcare dollars
B) Considered ethical to spend a high percentage on administrative costs
C) Americans pay less for health care than those living in Canada's socialized system
D) Includes enrolling beneficiaries and checking eligibility
E) Includes rebates to customers for good health checkups
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
106) Which one of the following is a source of government health insurance?
A) Blue Cross
B) Blue Shield
C) Medicare
D) HMO
E) PPO
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
107) Which one of the following is a source of government health insurance that is administered by each state?
A) Blue Cross
B) Blue Shield
C) National Institutes of Health
D) HMO
E) Medicaid
Difficulty: 1 Easy
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
108) Hospital insurance is which part of Medicare?
A) Part A
B) Part B
C) Part C
D) Part D
E) Part E
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
109) Medical insurance is which part of Medicare?
A) Part A
B) Part B
C) Part C
D) Part D
E) Part E
Difficulty: 1 Easy
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
110) The hospital insurance portion 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 these
Difficulty: 3 Hard
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
111) Medicare medical insurance helps pay for:
A) inpatient hospital care.
B) doctors' services.
C) home health care.
D) hospice care.
E) inpatient care in a skilled nursing facility.
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
112) Medicare medical insurance 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) paid for by state governments.
Difficulty: 3 Hard
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
113) Which of the following statements is not 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 is financed by both state and federal funds.
E) Medicaid is provided to wealthy individuals.
Difficulty: 3 Hard
Topic: Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
114) Because you feel young and healthy now, you may overlook the very real need for which type of insurance?
A) Disability income
B) Automobile
C) Dental
D) Vision care
E) Liability
Difficulty: 1 Easy
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
115) Disability:
A) is universally unacceptable.
B) has several definitions.
C) is determined by the American Council of Life Insurance.
D) has been formalized by the National Disability Council.
E) is provided by the Insurance Information Institute.
Difficulty: 2 Medium
Topic: Disability definitions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
116) Good disability plans pay when you are:
A) unable to work at your regular job.
B) unable to work at any job.
C) unable to work at a related job.
D) ill even for a short period.
E) fired from your regular job.
Difficulty: 2 Medium
Topic: Disability income policy comparisons
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
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.
E) on the 15th day of disability.
Difficulty: 2 Medium
Topic: Disability insurance coverages and provisions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
118) The waiting period in disability income insurance is called the ________ period.
A) exclusion
B) no benefit
C) coverage
D) trade-off
E) elimination
Difficulty: 2 Medium
Topic: Disability definitions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
119) Generally, disability income policies with longer waiting periods:
A) have higher premiums.
B) have lower premiums.
C) have about the same premium as those with shorter periods.
D) are issued by smaller insurance companies.
E) are issued by larger insurance companies.
Difficulty: 1 Easy
Topic: Disability insurance coverage considerations
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
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.
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
121) Most insurers limit disability benefits from all sources of insurance 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
Difficulty: 2 Medium
Topic: Disability insurance coverages and provisions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
122) John Gleason is permanently disabled while on the job. Which of the following is the most likely source of disability income for John?
A) His employer
B) Social Security
C) Worker's compensation
D) An individual insurance policy
E) His health insurance policy
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
123) Which one of the following is true regarding group health insurance?
A) Provides coverage for you and your immediate family
B) Covers all of your health insurance needs
C) Comprises 100% of all health insurance issued by health and life insurance companies
D) Typically covers all of an individual's medical costs
E) Always requires proof of insurability
Difficulty: 3 Hard
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
124) Which of the following is not a way that you can reduce your own medical costs?
A) Ask your physician and pharmacist if a less expensive generic drug is available.
B) Save time and do not review billing statements from medical providers.
C) Practice preventative care and stay well.
D) Consider participating in a flexible spending account if your employer offers it.
E) Ask your doctor if you can follow up by phone instead of visiting the office.
Difficulty: 2 Medium
Topic: Personal costs of health care
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
125) Which of the following is not a key provision of the Patient Protection and Affordable Care Act of 2010?
A) Offers tax credits for small businesses to make employee coverage more affordable
B) Eliminates copayments for preventive services
C) Encourages insurance companies to drop people from coverage when they get sick
D) Restricts the use of annual limits to ensure access to needed care in all plans
E) Increases funds for Community Health Centers
Difficulty: 2 Medium
Topic: Medical costs; Health care laws and regulations
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
126) Renee Carson's health insurance policy includes a $500 deductible and a coinsurance provision requiring her to pay 20 percent thereafter. Her medical bills total $7,000. What amount is she required to pay personally?
A) $1,800
B) $500
C) $1,300
D) $5,000
E) $7,000
Explanation: $7,000 − $500 = $6,500; $6,500 × 20% =$1,300; $500 + $1,300 = $1,800
Difficulty: 3 Hard
Topic: Health insurance claims and payments
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Apply
Accessibility: Keyboard Navigation
Gradable: automatic
127) The Affordable Health Act of 2010 requires new health plans to allow young people to remain on their parents' insurance policy until what age?
A) 23
B) 24
C) 25
D) 26
E) 27
Difficulty: 1 Easy
Topic: Health care laws and regulations
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
128) Every year, what percent of the adult U.S. population suffers a long-term disability?
A) 12
B) 14
C) 18
D) 23
E) 25
Difficulty: 2 Medium
Topic: Disability definitions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
129) As a national average, a year in a nursing home can cost over:
A) $32,000.
B) $49,000.
C) $63,000.
D) $97,000.
E) $100,000.
Difficulty: 2 Medium
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
130) Physician expense insurance coverage excludes which of the following:
A) Visits to the doctor's office
B) X-rays
C) Surgery
D) Lab tests
E) General physician care
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
131) Up to how many days of care in a skilled nursing facility are covered by Medicare?
A) 30
B) 60
C) 85
D) 100
E) 120
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
132) Medicare covers the cost of care in what countries besides the United States?
A) Japan
B) India
C) Germany
D) Mexico and Canada
E) Mexico, Canada, and Germany
Difficulty: 2 Medium
Topic: Medicare and its supplements
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
133) According to The Center for Medicare and Medicaid Services, health insurance includes both medical expense insurance and:
A) disability income insurance.
B) unemployment income insurance.
C) retirement income insurance.
D) life insurance.
E) dental insurance.
Difficulty: 2 Medium
Topic: Insurance terminology
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
134) Group health insurance plans comprise about ________ percent of all the health insurance issued by health and life insurance companies.
A) 60
B) 70
C) 80
D) 90
E) 100
Difficulty: 2 Medium
Topic: Insurance terminology
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
135) A sign that your group health coverage needs supplementing would be:
A) it covers a minor portion of your dental bills.
B) it covers a major portion of your hospital charges.
C) it covers a major portion of your doctor bills.
D) it covers over 50% of the going rate for surgical procedures.
E) it covers a minor portion of your hospital, doctor, and surgical charges.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
136) Which of the following factors has not contributed to rising health costs?
A) An aging population
B) An overweight population
C) The cost of prescription drugs
D) The growing number of insured
E) Advancements in medical technology
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
137) In the U.S., administrative costs consume nearly ________ percent of health care dollars.
A) 1
B) 5
C) 10
D) 11
E) 15
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
138) If your employer pays the premium for long-term care, then the ________ treats it as a tax-deductible expense for the employer.
A) National Association of Insurance Commissioners
B) U.S. Administration on Aging
C) Medicare.gov
D) Longtermcare.gov
E) Health Insurance Portability and Accountability Act of 1996
Difficulty: 2 Medium
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
139) Which of the following is not listed in your book as offering group health insurance plans?
A) Large government employers
B) Health and fitness clubs
C) Labor unions
D) Professional associations
E) Large private employers
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
140) Which type of health insurance covers diagnosing and treating glaucoma, eyeglasses, and eye surgery?
A) Surgical expense
B) Vision care
C) Physician's expense
D) Medicare Part B
E) Major medical
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
141) Which provision in a health insurance policy prevents you from collecting benefits from two or more group policies that would in total exceed the actual charges?
A) Coordination of benefits
B) Assigned benefits
C) Benefit limits
D) Guaranteed renewable
E) Exclusions and limitations
Difficulty: 2 Medium
Topic: Coordination of benefits
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.; 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
142) Which provision in a health insurance policy explains the circumstances under which the insurance company can end your health insurance policy?
A) Coordination of benefits
B) Assigned benefits
C) Cancellation and termination
D) Guaranteed renewable
E) Exclusions and limitations
Difficulty: 2 Medium
Topic: Coordination of benefits
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.; 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
143) If you are 35 years old now, your chances of experiencing a three-month or longer disability before you reach age 65 are _____percent, according to the National Association of Insurance Commissioners.
A) 25%
B) 30%
C) 40%
D) 50%
E) 75%
Difficulty: 3 Hard
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
144) To qualify for disability income under Social Security, you must be totally disabled for ________ months or more, and you must be unable to do any work.
A) 1
B) 3
C) 6
D) 9
E) 12
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
145) Jose Gonzales is purchasing disability income insurance. He should aim for a benefit amount that, when added to other income, will equal ________ percent of his gross pay.
A) 40
B) 50 to 60
C) 60 to 70
D) 70 to 80
E) 90
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
146) Which of the following is not a source of disability income?
A) Your employer
B) Social Security
C) Worker's compensation
D) Unemployment compensation
E) Group union disability benefits
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
147) People are more likely to lose their incomes due to ________ than death.
A) retirement
B) unemployment
C) a layoff
D) disability
E) war
Difficulty: 2 Medium
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
148) According to the Government Accountability Office, fraud and abuse account for nearly ________ percent of all dollars spent on health care.
A) 10
B) 11
C) 15
D) 20
E) 25
Difficulty: 3 Hard
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
149) By 2026, annual health care spending is expected to grow to almost ________ percent of GDP.
A) 1
B) 10
C) 11
D) 15
E) 20
Difficulty: 3 Hard
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
150) Which of the following requires large employers to provide health insurance coverage to all employees?
A) The COBRA of 1986
B) The HIPAA of 1996
C) The Centers for Medicaid Services
D) The Centers for Medicare Services
E) The Tax Cuts and Jobs Act of 2017
Difficulty: 2 Medium
Topic: Health care laws and regulations
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
151) A recent industry survey estimated that ________ percent of employed Americans are enrolled in some form of managed care.
A) 85
B) 75
C) 50
D) 40
E) 25
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
152) Which of the following plans is a hybrid that combines characteristics of both HMOs and PPOs?
A) Medicaid
B) PPO
C) POS
D) HMO
E) Medicare
Difficulty: 3 Hard
Topic: Types of medical insurance coverage
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
153) What should you do if your health insurer denies medical treatment or coverage?
A) Write a formal complaint letter.
B) Review your policy and explanation of benefits.
C) Contact your insurer and keep detailed records of your contacts.
D) Request documentation from your doctor to support your case.
E) All of these
Difficulty: 2 Medium
Topic: Policy holder rights and protections
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: automatic
154) In the case of divorce, federal law provides that coverage under a former spouse's medical plan can be continued for ________ months if the former spouse works for a company with 20 or more employees.
A) 12
B) 36
C) 48
D) 60
E) indefinitely
Difficulty: 2 Medium
Topic: Health care laws and regulations
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
155) Services that may be available in your community to help meet long-term care needs include:
A) visiting nurses
B) home health aides
C) home-delivered meals
D) adult day care centers
E) All of these
Difficulty: 3 Hard
Topic: Long-term care insurance
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
156) Which of the following is true regarding the difference between a reimbursement policy and an indemnity policy for health insurance provisions?
A) A reimbursement policy is based on the actual expenses you incur.
B) An indemnity policy is based on the actual expenses you incur.
C) A reimbursement policy is based on specified benefits regardless of actual expenses.
D) An indemnity policy is based on actual expenses regardless of specified benefits.
E) There is no difference between these two.
Difficulty: 3 Hard
Topic: Health insurance policy provisions
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
157) Home health care does not include:
A) home health agencies
B) doctor offices
C) home care aid organizations
D) hospices
E) facilities that care for the terminally ill
Difficulty: 2 Medium
Topic: Health care agencies and services
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: automatic
158) Besides preventive care, HMOs provide a comprehensive range of other health care services. What are they?
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: manual
159) The Wilson family has health insurance coverage that pays 50 percent of out-of-hospital expenses after a $1,200 deductible per person. Mrs. Wilson incurred doctor and prescription medication expenses of $3,850. What amount would the insurance company pay and what amount will the Wilson family pay?
Difficulty: 3 Hard
Topic: Health insurance claims and payments
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Apply
Accessibility: Keyboard Navigation
Gradable: manual
160) Jacob, an assembly line worker at a motorcycle manufacturing plant, has take-home pay of $1,200 a week. He is injured in an accident that kept him off work for 12 weeks. His disability insurance coverage replaces 60 percent of his earnings after a six-week waiting period. What total amount would he receive in disability benefits?
Difficulty: 2 Medium
Topic: Disability insurance coverages and provisions
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Apply
Accessibility: Keyboard Navigation
Gradable: manual
161) Why does health care cost so much?
The high and rising costs of health care are attributable to many factors, including:
∙ The use of sophisticated, expensive technologies.
∙ Duplication of tests and sometimes duplication of technologies that yield similar results.
∙ Increases in the variety and frequency of treatments, including allegedly unnecessary tests.
∙ The increasing number and longevity of elderly people.
∙ Regulations that result in cost shifting rather than cost reduction.
∙ The increasing number of accidents and crimes that require emergency medical services.
∙ Limited competition and restrictive work rules in the health care delivery system.
∙ Labor intensiveness and rapid average earnings growth for health care professionals and executives.
∙ Using more expensive medical care than necessary, such as going to an emergency room with a bad cold.
∙ Built-in inflation in the health care delivery system.
∙ Aging baby boomers' use of more health care services, whether they're going to the doctor more often or snapping up pricier drugs, from Celebrex to Viagra.
∙ Other major factors that cost billions of dollars each year, including fraud, administrative waste, malpractice insurance, excessive surgical procedures, a wide range of prices for similar services, and double health coverage.
According to the Government Accountability Office, fraud and abuse account for nearly 10 percent of all dollars spent on health care.
Difficulty: 2 Medium
Topic: Medical costs
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: manual
162) What does health insurance include, and what is its importance in personal financial planning?
Difficulty: 2 Medium
Topic: Personal costs of health care
Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: manual
163) Name the five basic types of health insurance?
Difficulty: 2 Medium
Topic: Types of medical insurance coverage
Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: manual
164) Identify the sources of health care insurance.
Difficulty: 2 Medium
Topic: Group health insurance
Learning Objective: 11-04 Evaluate private sources of health insurance and health care.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: manual
165) What are the two best-known sources of government health care insurance?
Difficulty: 1 Easy
Topic: Medicare and its supplements; Medicaid
Learning Objective: 11-05 Appraise the sources of government health care programs.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: manual
166) What is disability income insurance? What are the major sources of disability income insurance?
Disability income insurance benefits provide regular cash income lost by employees as the result of an accident or illness. Sources of disability income insurance include your employer, Social Security, worker's compensation, the Veterans Administration pension disability benefits, civil service disability benefits for government workers, state vocational rehabilitation benefits, state welfare benefits for low-income people, Aid to Families with Dependent Children, group union disability benefits, automobile insurance that provides benefits for disability from an auto accident, and private insurance.
Difficulty: 3 Hard
Topic: Disability income and its sources
Learning Objective: 11-06 Recognize the need for disability income insurance.
Bloom's: Remember
Accessibility: Keyboard Navigation
Gradable: manual
167) What are some things that you can do to reduce your personal health care costs?
As health care costs continue to rise, there are a few steps that you can take to reduce your own medical costs.
∙ Consider participating in a flexible spending account if your employer offers it.
∙ Consider a high-deductible health plan that provides medical insurance coverage and a tax-free opportunity to save for future medical needs.
∙ Ask your physician and pharmacist if a less expensive generic drug is available.
∙ Consider using a mail-order or legitimate online pharmacy, especially if you will take a drug for a long period.
∙ Most states offer free or low-cost coverage for children under 19 who do not have health insurance. Visit www.insurekidsnow.gov or call 1-877-KIDS-NOW for more information.
∙ Many states offer State Pharmacy Assistance Programs that help pay for prescription drugs based on financial need, age, or medical condition.
∙ If your doctor wants you to return for a follow-up visit, ask if it is really necessary or can you follow up by phone.
∙ If your doctor suggests a nonurgent procedure, ask for information and some time to think about it. Research the suggested treatment on Web MD (www.webmd.com) and compare costs on Health Care Blue Book (www.healthcarebluebook.com) or New Choice Health (www.newchoicehealth.com).
∙ Review billing statements from medical providers for billing errors.
∙ Appeal unfair decisions by your health plan. (Read the accompanying How To feature box.)
∙ Practice preventive care and stay well.
Difficulty: 2 Medium
Topic: Personal costs of health care
Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing.
Bloom's: Understand
Accessibility: Keyboard Navigation
Gradable: manual