Exam

Question 1

Healthcare problems in the US

Answer 1

Preventable medical care, high costs, lack of insurance coverage, etc.

Question 2

Deductible

Answer 2

The amount you pay for covered health care services before your insurance plan starts to pay.

Question 3

Family Deductible

Answer 3

The maximum amount that a family needs to meet for coinsurance to kick in for everyone in the family.

Question 4

Coinsurance

Answer 4

The percentage of costs of a covered health care service you pay (20%, for example) after you’ve paid your deductible.

Question 5

Managed Care

Answer 5

Used to describe a group of activities intended to reduce the cost of providing health care and providing American health insurance while improving the quality of that care.

Question 6

Cafeteria Plans

Answer 6

An employer-sponsored benefit that lets employees pay certain qualified medical expenses, such as, health insurance premiums for medical, dental, and vision coverage on a pre-tax basis.

Question 7

Coordination of Benefits

Answer 7

The transmission from any entity to a health plan for the purpose of determining the relative payment responsibilities of a health plan for health care claims or payment information.

Question 8

Eligibility Period

Answer 8

Conditions that must be met in order for an individual or group to be considered eligible for insurance coverage.

Question 9

Flexible Spending Accounts

Answer 9

An arrangement through your employer that lets you pay for many out-of-pocket medical expenses with tax-free dollars. Allowed expenses include insurance copayments and deductibles, qualified prescription drugs, insulin, and medical devices.

Question 10

Health Savings Accounts

Answer 10

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.

Question 11

Pre-Existing Conditions

Answer 11

A health problem, like asthma, diabetes, or cancer, you had before the date that new health coverage starts. Insurance companies can’t refuse to cover treatment for your pre-existing condition or charge you more.

Question 12

Major Medical

Answer 12

A specific type of health insurance plan that will help cover your medical expenses. It often covers preventive care services, urgent care visits, emergency room visits, prescription medications, and other routine medical expenses.

Question 13

Long Term Care Insurance

Answer 13

Provides coverage for the costs of long-term care associated with the activities of daily living, such as eating, bathing, dressing, and other needs.

Question 14

Disability Insurance

Answer 14

Replaces a portion of your income when you can’t work.

Question 15

The Nature of Group Insurance

Answer 15

Provide coverage to a group of members, usually comprised of company employees or members of an organization.

Question 16

Self Insurance

Answer 16

A type of plan in which an employer takes on most or all of the cost of benefit claims. The insurance company manages the payments, but the employer is the one who pays the claims.

Question 17

Employee Retirement Income Security Act (ERISA)

Answer 17

Protects retirement savings from mismanagement and abuse, and clarifies that those in charge of those savings be held to a high standard

Question 18

Pension Benefit Guarantee Corporation

Answer 18

Insures and guarantees private sector workers’ pensions.

Question 19

Qualified Plans

Answer 19

A retirement plan established by an employer that is designed to provide retirement income to designated employees and their beneficiaries

Question 20

Defined Benefit Plans

Answer 20

Provide a fixed, pre-established benefit for employees at retirement.

Question 21

Defined Contribution Plans

Answer 21

A retirement plan in which the employee and/or the employer contribute to the employee’s individual account under the plan.

Question 22

401K

Answer 22

An employer-sponsored retirement savings plan that offers significant tax benefits while helping you plan for the future. With a 401(k), an employee sets a percentage of their income to be automatically taken out of each paycheck and invested in their account.

Question 23

403B

Answer 23

A retirement plan for certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers. A 403(b) plan allows employees to contribute some of their salary to the plan.

Question 24

Simplified Employee Pension

Answer 24

Provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings.