#1
Which of the following is a common type of health insurance plan?
Health maintenance organization (HMO)
ExplanationHMOs emphasize preventive care and require members to choose a primary care physician.
#2
What does the term 'premium' refer to in health insurance?
Monthly cost of the insurance policy
ExplanationPremium is the monthly amount paid for health insurance coverage.
#3
In health insurance, what is the purpose of a deductible?
Initial out-of-pocket cost before insurance coverage kicks in
ExplanationDeductible is the amount paid by the insured before the insurance coverage begins.
#4
What is the difference between a copayment and coinsurance in health insurance?
Copayment is a fixed amount, while coinsurance is a percentage
ExplanationCopayment is a fixed payment, while coinsurance is a percentage of the covered expenses.
#5
Which government program provides health coverage for individuals aged 65 and older in the United States?
Medicare
ExplanationMedicare provides health coverage for individuals aged 65 and older in the United States.
#6
What is the purpose of the Affordable Care Act (ACA) in the United States?
To expand access to affordable health insurance and improve the healthcare system
ExplanationACA aims to enhance access to affordable health insurance and improve the healthcare system.
#7
What is the 'grace period' in health insurance policies?
A period of extended coverage after the policy has lapsed
ExplanationGrace period is a time of extended coverage after the health insurance policy has lapsed.
#8
What is a Health Savings Account (HSA) commonly used for in relation to health insurance?
Covering out-of-pocket medical expenses with pre-tax dollars
ExplanationHSAs allow covering out-of-pocket medical costs with pre-tax funds.
#9
In health insurance, what does the term 'exclusion' refer to?
A list of services or conditions not covered by the policy
ExplanationExclusion refers to a list of services or conditions not covered by the insurance policy.
#10
What is a pre-existing condition in the context of health insurance?
A condition that existed before the policy's effective date
ExplanationPre-existing condition is a health issue existing before the insurance policy's effective date.
#11
How does the coordination of benefits work in health insurance?
It is a process of sharing medical costs between multiple insurance plans
ExplanationCoordination of benefits involves sharing medical costs among multiple insurance plans.
#12
In health insurance, what does 'underwriting' involve?
Evaluating an applicant's risk and determining coverage eligibility
ExplanationUnderwriting assesses an applicant's risk and determines eligibility for coverage.