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Health Insurance Fundamentals Quiz

#1

What is the deductible in health insurance?

The amount paid by the insured before the insurance coverage kicks in
Explanation

Initial amount paid by insured before insurance benefits begin

#2

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

Consolidated Omnibus Budget Reconciliation Act
Explanation

Federal law allowing continuation of group health insurance after employment loss

#3

What does EOB stand for in health insurance?

Explanation of Benefits
Explanation

Document detailing benefits paid or denied for medical services

#4

What is a copayment (copay) in health insurance?

A fixed amount the insured pays for covered medical services
Explanation

Fixed amount paid for each medical service

#5

What is a premium in health insurance?

A monthly or yearly fee paid to the insurance company to maintain coverage
Explanation

Fee paid to maintain insurance coverage

#6

What is a Health Insurance Claim?

A request for payment submitted to the insurance company by a healthcare provider
Explanation

Request for payment submitted by healthcare provider to insurance company

#7

Which of the following is NOT typically covered by a basic health insurance plan?

Cosmetic surgery
Explanation

Optional surgical procedures not usually covered by basic plans

#8

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

To save money for medical expenses on a tax-advantaged basis
Explanation

Tax-advantaged savings account for medical expenses

#9

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

To manage and coordinate healthcare services for its members
Explanation

Organize and oversee healthcare services for members

#10

What does the term 'coinsurance' mean in health insurance?

A percentage of medical costs the insured pays after meeting the deductible
Explanation

Percentage of medical costs paid by insured after deductible

#11

What is a pre-existing condition in the context of health insurance?

A condition for which the insured received treatment before the insurance coverage started
Explanation

Condition treated before insurance coverage began

#12

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

To reimburse employees for qualified medical expenses
Explanation

Reimburse employees for medical expenses

#13

What is the main difference between an HMO and a PPO?

HMOs require referrals to see specialists, while PPOs do not
Explanation

Referral requirements for specialist care differ between these insurance models

#14

What is the main difference between an EPO and a PPO?

EPOs typically require referrals to see specialists, while PPOs do not
Explanation

Referral requirements differ between these insurance plans

#15

What does the term 'out-of-pocket maximum' mean in health insurance?

The maximum amount the insured pays out of pocket each year, after which the insurance covers 100% of covered expenses
Explanation

Maximum annual amount insured pays before insurance covers 100%

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