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Health Insurance and Employee Benefits Quiz

#1

Which of the following is a common type of health insurance plan?

Health Maintenance Organization (HMO)
Explanation

Focuses on preventive care and cost control.

#2

What is the purpose of a Health Savings Account (HSA)?

To save for qualified medical expenses
Explanation

Tax-advantaged savings account for medical expenses.

#3

What is the purpose of a Health Reimbursement Arrangement (HRA)?

To reimburse employees for qualified medical expenses
Explanation

Employer-funded plan covering medical costs.

#4

What does EOB stand for in health insurance?

Explanation of Benefits
Explanation

Summary of services, costs, and payments.

#5

What is the purpose of a dependent care flexible spending account (FSA)?

To pay for childcare or eldercare expenses with pre-tax dollars
Explanation

Funds used for dependent care expenses.

#6

What does COBRA stand for in the context of health insurance?

Consolidated Omnibus Budget Reconciliation Act
Explanation

Legislation allowing continued coverage post-employment.

#7

Which of the following is NOT typically covered by a standard health insurance policy?

Cosmetic surgery
Explanation

Considered elective and not medically necessary.

#8

What is a deductible in health insurance?

The amount you pay before your insurance kicks in
Explanation

Initial amount paid by the insured before coverage begins.

#9

Which of the following is a feature of a Preferred Provider Organization (PPO)?

Offers a broad network of healthcare providers
Explanation

Provides access to a wide range of medical services.

#10

What is the 'out-of-pocket maximum' in health insurance?

The maximum amount you pay out-of-pocket each year
Explanation

Upper limit on personal expenditure within a policy period.

#11

What is the purpose of a copayment in health insurance?

To share the cost of healthcare services with the insurer
Explanation

Fixed amount paid by the insured for each service.

#12

Which of the following statements about Flexible Spending Accounts (FSAs) is true?

Funds are contributed after-tax
Explanation

Contributions made with post-tax income.

#13

Which of the following is typically NOT covered by Medicare?

Long-term care services
Explanation

Often excluded, separate policies may cover it.

#14

What is the purpose of a Health Maintenance Organization (HMO)?

To focus on preventive care and cost control
Explanation

Emphasizes preventive healthcare services.

#15

Which of the following statements about Health Insurance Marketplaces (Exchanges) is true?

They offer a variety of health insurance plans from different insurers
Explanation

Platforms for comparing and purchasing insurance.

#16

What is the purpose of a Medicaid program?

To offer health insurance to low-income individuals and families
Explanation

Government program for those with limited income.

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