Chatpter 5 Part 3

Question 1

High deductible health plans are often used in coordination with

Answer 1

Medical savings accounts
Health savings accounts
Health reimbursements accounts

Question 2

Higher deductible health plan features higher annual deductibles and out of pocket limits than traditional health plans which means

Answer 2

Lower premiums

Question 3

Except for preventative care the annual deductible must be met before

Answer 3

The plan will pay benefits

Question 4

Hdhp credits a portion of health plan premium into the coordinating msa hsa or hra

Answer 4

On a monthly basis
Deductible may be paid with funds from coordinating account plan

Question 5

How do employer contributions to a health savings account affect the insureds taxes

Employer contributions are taxed to individual insured as earned income
Employer contributions are deducted from individual insureds tax calculation
Employer contributions are not included int he individual insureds taxable income

Answer 5

Employer contributions are not included in the individual insureds taxable income

Question 6

Person must obtain coverage under qualified health insurance plan with established minimum deductibles

Answer 6

1500 for singles and 3000 for families in 2023

Question 7

Contribution limits are

Answer 7

3850 for singles and 7750 for families

Question 8

When opening account individual must be under the age of

Answer 8

Medicare eligibility

Question 9

For taxpayers aged 55 years and older additional contribution amount is allowed

Answer 9

1000 up to

Question 10

Insd set aside by employers to reimburse employees for qualified medical expenses such as deductibles or con insurance amounts

Answer 10

Health reimbursement accounts hra

Question 11

How are employer contributions to health reimbursement accounts treated in regards to taxation

They are tax deductible
They are taxed as a regular business expense
They are treated as income tax for the employer
They are excluded from all taxation

Answer 11

Contributions to hra are tax deductible

Question 12

Who determines the eligibility and contribution limits of an hra

Insurer
Employer
Employee
State

Answer 12

Employer

Question 13

Employers can reduce health plan costs by coupling a health reimbursement account hra with

High deductible health plan
Low deductible health plan
Ira
Nothing no coupling

Answer 13

High deductible health plan

Question 14

What size comprises are eligible for health reimbursement accounts hra

Companies of all sizes
Small employers only
Sole proprietors only
Companies with at least 100 employees only

Answer 14

Companies of all sizes

Question 15

Who determines eligibility and contribution limits in hra

Answer 15

Employer determines both

Question 16

Which is available to employs of all sizes

Hra
Msa
Lpa
Hsa

Answer 16

Hra

Question 17

Insured has 1000 hra account through employer

Incurred 740 in medical expenses first year of plan. How much will insured be able to roll over toward next years expenses

0
250
750
1000

Answer 17

250

Question 18

When employee covered under health reimbursement account changes employers the hra

Stays with employer
Follows employee
Returns to insurer
Is split between employee and employer

Answer 18

Stays with the employer

Question 19

Hra allow employees to roll over unused benefits to the following calendar year in

Answer 19

Addition to new benefits

Question 20

Which is true about hra

Account does not allow roll over of unused balances at end of year

Account allows rollover of unused balances at end of year at employer’s discretion

Account allows rollover of unused balances at the end of the year at the employees discretion

Answer 20

Allows rollover of unused balances at end of year at employer’s discretion

Question 21

Insured has 500 left in his health reimbursement account when he quit his job

What happens to that money

It my be rolled over into hra with new employer
Insured can use up to 500 as long as he has qualified medical expenses
Insured can have access to 500 at previous employer’s discretion

Answer 21

Insured can have access to 500 at previous employers discretion

Question 22

Hra have no statutory limit and

Answer 22

Limits may be set by employer

Question 23

Designed to replace lost income in event of this contingency and is vital component in comprehensive ins program

Answer 23

Disability income ins

Question 24

May be purchased individually or through an emp on group basis

Answer 24

Disability income ins

Question 25

G period imposed on insured from onset of disability until benefit pay amends commence

Answer 25

Elimination period

Question 26

Deductible measured in days instead of dollars; purpose is to eliminate coverage for short term disabilities in which insured will be able to return to work in relatively short period of time

Answer 26

Elimination period

Question 27

Elimination period found in most policies range from

Answer 27

30 to 180 days

Question 28

Just as higher deductible amount results in lower premiums for medical ins a longer elimination period translates into

Answer 28

A lower premium for disability income ins

Question 29

Important consideration in selecting elimination period is that

Answer 29

Payments are made in arrears

Question 30

Money owed should’ve been paid earlier

Answer 30

Arrears

Question 31

Time deductible designed to eliminate overage for short term disabilities and reduce the filing of excessive claims

Answer 31

Elimination period

Question 32

Another type of waiting period imposed under some disability incom policies

Answer 32

Probationary period

Question 33

Probationary period Does not replace elimination but

Answer 33

In addition to it