#1
Which of the following is a common type of health insurance plan?
Health Maintenance Organization (HMO)
ExplanationFocuses on preventive care and cost control.
#2
What is the purpose of a Health Savings Account (HSA)?
To save for qualified medical expenses
ExplanationTax-advantaged savings account for medical expenses.
#3
What is the purpose of a Health Reimbursement Arrangement (HRA)?
To reimburse employees for qualified medical expenses
ExplanationEmployer-funded plan covering medical costs.
#4
What does EOB stand for in health insurance?
Explanation of Benefits
ExplanationSummary 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
ExplanationFunds used for dependent care expenses.
#6
What does COBRA stand for in the context of health insurance?
Consolidated Omnibus Budget Reconciliation Act
ExplanationLegislation allowing continued coverage post-employment.
#7
Which of the following is NOT typically covered by a standard health insurance policy?
Cosmetic surgery
ExplanationConsidered elective and not medically necessary.
#8
What is a deductible in health insurance?
The amount you pay before your insurance kicks in
ExplanationInitial 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
ExplanationProvides 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
ExplanationUpper 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
ExplanationFixed 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
ExplanationContributions made with post-tax income.
#13
Which of the following is typically NOT covered by Medicare?
Long-term care services
ExplanationOften 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
ExplanationEmphasizes 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
ExplanationPlatforms for comparing and purchasing insurance.
#16
What is the purpose of a Medicaid program?
To offer health insurance to low-income individuals and families
ExplanationGovernment program for those with limited income.