Question: What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)?

Answer: Dread Disease insurance. Dread disease insurance provides benefits for ONLY specific types of illness such as cancer or stroke.

Question: All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT:

Answer: Health Reimbursement Arrangement Plan (HRA’s). Not for employees.

-Exceptions include:

-Selection 125 Plan

-Premium Only Plan

-Cafeteria Plan

Question: Jennifer is required to pay on a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a (n)

Answer: Deductible. A deductibles is a stated initial dollar amount that the individual insured is required to pay before insurance benefits are paid.

Question: Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay?

Answer: $900.00. In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied.

Question: Which of the following is NOT included under a health benefit plan?

Answer: Hospital Indemnity Plan.

-Exceptions include:

-Major medical policy

-Basic hospital policy

-Surgical Expense policy

Question: All of the following are characteristics of a major medical expense policy EXCEPT:

Answer:

Question: Distributions from a Health Savings Account (HSA) for a qualified medical expenses are:

Answer: Tax-Free.

Question: Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125?

Answer: $50.00. In this situation, the insured will have to pay a $25.00 deductible plus $25.00 coinsurance which equals $50.00.

Question: Major Medical expense plans provide coverage for each of the following EXCEPT:

Answer: Work-Related injuries. Work-related injuries are typically covered by Workers Compensation Insurance.

-Exceptions include:

-Medically necessary surgery

-Diagnostic test

-Blood and urine lab screens

Question: All of the following are qualifications for establishing a health savings account (HSA) EXCEPT:

Answer: Enroll in a health plan with a prescription drug benefit. Establishing an HSA does not require to do so.

-Exceptions include:

-Enrolled in a high deductible plan

-Be under the age of 65 (not enrolled in Medicare)

-Enrolled in a health plan that limits out of pocket expenses