#1
What is the basic purpose of health insurance?
To protect against financial loss due to medical expenses
ExplanationFinancial protection against medical expenses.
#2
What is the role of a health insurance premium in the context of insurance policies?
It is the amount paid by the insured to the insurance company for coverage
ExplanationAmount paid by insured for insurance coverage.
#3
What is the purpose of a Health Reimbursement Arrangement (HRA) in health insurance?
To reimburse employees for eligible medical expenses
ExplanationEmployee reimbursement for eligible medical expenses.
#4
In health insurance, what is a 'network'?
The list of healthcare providers, hospitals, and facilities that have agreed to provide services at discounted rates
ExplanationList of providers offering discounted services.
#5
Which government program provides health coverage for individuals aged 65 and older in the United States?
Medicare
ExplanationHealth coverage for individuals aged 65 and older.
#6
What is the term for the maximum amount a policyholder will have to pay out-of-pocket for covered medical expenses in a given year?
Out-of-pocket maximum
ExplanationMaximum annual out-of-pocket medical expenses.
#7
What does the term 'pre-existing condition' mean in the context of health insurance?
A condition that existed before purchasing insurance
ExplanationCondition existing before obtaining insurance coverage.
#8
In the United States, what is the purpose of the Affordable Care Act (ACA)?
All of the above
ExplanationComprehensive goals of the Affordable Care Act.
#9
What is the primary goal of risk pooling in health insurance?
To share the financial risk of illness among a large group of people
ExplanationSharing financial risk among a large group.
#10
In health insurance, what does the term 'co-insurance' refer to?
The percentage of costs shared by the insured and the insurance company after the deductible is met
ExplanationCost-sharing percentage after meeting the deductible.
#11
Which of the following is a key consideration when choosing a health insurance plan?
Network of healthcare providers
ExplanationImportance of healthcare provider network in plan selection.
#12
What is the primary function of a Health Maintenance Organization (HMO) in health insurance?
To control costs through a network of preferred providers
ExplanationCost control through a preferred provider network.
#13
What is the purpose of a Health Savings Account (HSA) in health insurance?
To save money for qualified medical expenses with tax advantages
ExplanationSaving for medical expenses with tax advantages.
#14
What is the primary difference between a Health Savings Account (HSA) and a Flexible Spending Account (FSA)?
HSA funds are contributed pre-tax, and unused funds can roll over, while FSA funds have a use-it-or-lose-it rule
ExplanationTax advantages and fund rollover in HSA vs. FSA.