Chapter 5 Continued 2

Question 1

Does not describe principal goal of preferred provider organization

Provide subscriber a choice of physicians
Provide subscriber a choice of hospitals
Provide medical services at reduced cost
Provide medical services only from p hysicians in network

Answer 1

Provide medical services only fro physicians in the network

Question 2

Unbundled and paid for separately

Answer 2

Fee for service

Question 3

Which does NOT describe principal goal of preferred provider organization

Provide subscriber a choice of physicians
Provide subscriber a choice of hospitals
Provide medical services at reduced cost
Provide medical services only from physicians in the network

Answer 3

Provide medical services only from physicians in the network

Question 4

What is NOT a benefit of a pos plan

Allows employee to use hmo provided doctor
Allows the employee to use a doctor not covered under the hmo
With point of service plan employees do not have to make a decision between hmo or ppo plans that lock them in
It allows guaranteed acceptance of all applicants

Answer 4

It allows guaranteed acceptance of all applicants

Question 5

Can individual who belongs to pos plan use out of network physician

Yes but they must use the pos physician first
Yes but they must use the hmo physician first
Yes and they must use any preferred physician even if not part of hmo
No

Answer 5

Yes and they may use any preferred physician even if not part of the hmo

Question 6

In ppo all network providers are considered

Answer 6

Preferred

Question 7

Ppo=

Answer 7

Fee for service basis

Question 8

In network provider =

Answer 8

Lower out of pocket costs

Question 9

Out of network provider =

Answer 9

Higher out of pocket costs

Question 10

Annual contribution limit of dependent care flexible spending act is set by

Answer 10

Irs

Question 11

Other than for a qualified life event when can a change be made in bed it’s for a fsa

Answer 11

During the open enrollment period

Question 12

What is not true regarding fsa

Use it or lose it

Provides opp to receive benefits on pretax basis
Itis cafeteria plan
Does not have limits on contributions

Answer 12

Does not have limits on contributions

Question 13

Clients wants to know tax implications for contributions to a hsa
Advise her that contributions are

Answer 13

Tax deductible

Question 14

To be eligible for a health savings acct individual must be covered by a

Answer 14

High deductible health plan

Question 15

Assuming that all of following ppl are covered by a high deductible health plans nd are not claimed as dependents on anyone’s tax returns which would not be eligible for a health savings account

Jenny is 60 and also has a long term care ins plan
Joe is 40 and is not covered by any other health ins
Amanda is 67 and is covered by a basic medical expense policy
Andy is 55 and is covered under a dental care policy

Answer 15

Amanda is 67 and is covered by a basic medical expense policy

Question 16

To be eligible for a hsa individual must be covered by a

Answer 16

High deductible health plan

Question 17

must be have other health ins except for specific injury accident disabili dental care or long term care ins must not be eligible for Medicare (usually 65) cant be claimed as dependent on someone else’s tax return

Answer 17

To be eligible for hsa acct

Question 18

Hsa are designed

Help individuals save for qualified health expenses
Individual interest income
Insure against catastrophic losses

Answer 18

Help individuals save for qualified health expenses

Question 19

What is penalty tax for non qualified distributions from a health savings acct

Answer 19

20%

Question 20

What age may an individual make withdrawal from an hsa for non health purposes without being penalized

Answer 20

After 65

Question 21

Which of the following individual is eligible for a health savings acct

Person eligible for Medicare
Person insured under high deductible health plan
Child claimed as a dependent on her parent’s tax returns
Person insured under group health ins plan

Answer 21

Person under high deductible health plan

Question 22

Hsa holder who is 65 decides to use obey in acct for a onhealth expense
Which is true

There will be a tax and a 20% penalty
There will be a 205 penalty
There will be a tax
There will be no taxes and no penalties

Answer 22

There will be a tax

Question 23

Hsa holder who uses money for non health pays tax plus 20% penalty before 65

Answer 23

And after 65 withdrawal used for a non health purpose will be taxed but not penalized