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Health Insurance Principles and Considerations Quiz

#1

What is a deductible in health insurance?

The total amount of money you must pay out-of-pocket before your insurance coverage begins
Explanation

Initial payment before insurance kicks in

#2

Which of the following is not typically covered by health insurance?

Cosmetic surgery
Explanation

Non-medically necessary procedures

#3

What is the Affordable Care Act (ACA) also known as?

Obamacare
Explanation

Legislation for healthcare reform

#4

What is a co-payment (co-pay) in health insurance?

A fixed amount you pay for a covered health care service
Explanation

Fixed fee per covered service

#5

What is coinsurance in health insurance?

A percentage of the cost you pay for a covered service
Explanation

Percentage of covered service cost paid by the insured

#6

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

Consolidated Omnibus Budget Reconciliation Act
Explanation

Legislation providing continuation of coverage

#7

What is the difference between HMO and PPO health insurance plans?

HMO plans typically require referrals to see specialists, while PPO plans do not
Explanation

Referral requirement for specialists

#8

What is the Health Savings Account (HSA) primarily used for?

To pay for qualified medical expenses with pre-tax dollars
Explanation

Pre-tax savings for medical costs

#9

What is the purpose of a formulary in health insurance?

To list the medications covered by the insurance plan and their tier levels
Explanation

Medication coverage and tiers

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