#1
Which of the following is not a type of health insurance plan?
Healthcare Accounting Organization (HAO)
ExplanationHAO is not a recognized type of health insurance plan.
#2
What is the main function of a Health Maintenance Organization (HMO)?
To manage and coordinate healthcare services for members
ExplanationHMOs focus on managing and coordinating healthcare services.
#3
What is a Health Savings Account (HSA) primarily used for?
To pay for medical expenses with pre-tax dollars
ExplanationHSAs are used to pay for medical expenses with pre-tax dollars.
#4
Which of the following is not a typical coverage area for health insurance plans?
Automobile repairs
ExplanationHealth insurance plans typically do not cover automobile repairs.
#5
Which of the following is a characteristic of a Point of Service (POS) health insurance plan?
It requires referrals to see specialists
ExplanationPOS plans require referrals to see specialists.
#6
Which federal program provides health coverage to low-income individuals and families?
Medicaid
ExplanationMedicaid provides health coverage to low-income individuals and families.
#7
What is the purpose of a Preferred Provider Organization (PPO)?
To offer discounted rates for using in-network providers
ExplanationPPOs offer discounted rates for using in-network providers.
#8
What is COBRA in relation to health insurance?
A federal law that allows individuals to continue their group health insurance coverage after leaving employment
ExplanationCOBRA allows continuation of group health insurance after leaving employment.
#9
Which of the following is true regarding pre-existing conditions under the Affordable Care Act (ACA)?
Insurers cannot charge higher premiums for pre-existing conditions
ExplanationACA prohibits insurers from charging higher premiums for pre-existing conditions.
#10
What does the term 'out-of-pocket maximum' refer to in health insurance?
The maximum amount of money an individual can spend on healthcare in a year
ExplanationOut-of-pocket maximum refers to the maximum amount an individual can spend on healthcare in a year.
#11
Which of the following is a characteristic of a High Deductible Health Plan (HDHP)?
It typically has higher deductibles and lower premiums
ExplanationHDHPs have higher deductibles and lower premiums.
#12
What is the purpose of a Health Reimbursement Arrangement (HRA)?
To reimburse employees for healthcare expenses
ExplanationHRAs reimburse employees for healthcare expenses.
#13
What is a Health Care Sharing Ministry (HCSM)?
An organization where members contribute funds to cover each other's medical expenses
ExplanationHCSM is an organization where members contribute funds to cover each other's medical expenses.
#14
What is a Health Care Flexible Spending Account (FSA) used for?
To save pre-tax dollars for eligible medical expenses
ExplanationFSAs save pre-tax dollars for eligible medical expenses.
#15
What is the main purpose of a High Deductible Health Plan (HDHP)?
To encourage cost-saving behaviors by requiring higher out-of-pocket expenses
ExplanationHDHPs encourage cost-saving behaviors by requiring higher out-of-pocket expenses.