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Disability Income Insurance > Group Insurance > Flashcards

Group Insurance Flashcards

1
Q

What is the policyowner responsible for (3)

A
  • Applying for coverage
  • Keeping the policy in force
  • Paying premiums
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2
Q

What are 5 provisions cited in the master policy

A
  • Explain eligibility requirements
  • Establish when coverage is effective
  • State the minimum number of persons and percentage of the group which must be covered
  • Establish coverage limits for members
  • Cite the duties of the master policyowner
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3
Q

What is the certificate of insurnace

A

It is evidence of coverage (basically the handbook)

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4
Q

When comparing individual policies to group contracts, generally group contracts have:

A
  • Higher maximums
  • Broader benefits
  • Fewer exclusions
  • Less stringent underwriting
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5
Q

Does COB affect payments from individual disability insurance

A

No

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6
Q

Who pays if a child is enrolled under both parents

A

The parent with the earliest birth date in a calendar year pays first (January will pay before February)

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7
Q

What are three employment-related groups

A
  • Individual employer groups
  • Multiple employer trusts (MET)
  • Multiple employer welfare arrangements (MEWA)
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8
Q

What is a MEWA

A

It is a type of trust, that provides benefits to employees of two or more employers within a specific industry

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9
Q

Does an employee have to become a member of MEWA

A

Yes, if they want to receive benefits, then they become a member of the trust

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10
Q

Can MEWA be both fully insured and ASO

A

Yes

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11
Q

What is different about a MET from a MEWA

A

A met is a type of MEWA, but it has to be fully insured

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12
Q

What are three requirements in order for an association to provide group health insurance

A
  • Have had an existence for at least one year
  • Have a constitution and bylaws
  • Did not get together in order to have insurance
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13
Q

Who is the policyholder in associations

A

The association is the policyholder

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14
Q

What are two requirements for self-funded groups

A
  • The law of large numbers enables accurate estimates of losses
  • Enough assets to cover any losses
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15
Q

What if a self insurer does not have enough in assets to cover employees

A

Then they must have stop-loss insurance

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16
Q

To underwrite group insurance, what does the underwriter take into consideration

A
  • Who is eligible to enroll (high risk versus low risk)
  • Geographic area
  • Composition of the group (age and gender)
  • Percentage of eligible members participating
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17
Q

Define adverse selection

A

When people with high risk join and raise the premium price, then low risk members will leave due to the higher premiums

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18
Q

Under a contributory plan, where the member pays part of the premium, how many members must participate

A

75%

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19
Q

Under a noncontributory plan, where the member does not pay any part of the premium, how many members must participate

A

100%

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20
Q

Define persistency factors

A

The insurer will consider whether the group changes insurers frequently, because we don’t want a group that moves around a lot, because the initial underwriting numbers cost more

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21
Q

How are the premiums for groups determined

A

They are based on their experience rating

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22
Q

What does experience rating take into account

A
  • Average age of the group members
  • Coverage limits and deductibles
  • Occupational hazards
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23
Q

Define doctrine of comity

A

The state in which a group policy is delivered to the policyowner has regulatory jurisdiction, which means that the policy has to follow the laws of that state regardless of where members are living

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24
Q

What happens if the group changes carriers before the renewal (mid-year change). How are claims paid?

A
  • The new plan would pay the difference between the amount it would have paid and the amount payable under the original plan (basically cover any amounts leftover, so the member doesn’t notice a difference)
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25
Q

Define the no loss-no gain statues

A

Prohibit the replacing carrier from denying benefits to members who have existing claims filed with the previous carriers

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26
Q

What does COBRA stand for

A

Consolidated Omnibus Budget Reconciliation Act (COBRA)

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27
Q

Once your coverage is terminated, how long do you have to elect COBRA coverage

A

60 days

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28
Q

Under COBRA how much will you have to pay

A

100% of the premium plus 2% admin fees

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29
Q

What are 3 reasons to have COBRA coverage for 18 months

A
  • Reduction in hours
  • Termination of employment
  • Layoff
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30
Q

What is the reason to have COBRA coverage for 29 months

A

Disability

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31
Q

What are 5 reasons that a dependent could receive coverage for 36 months

A
  • Employee’s death
  • Divorce
  • Separation
  • Eligibility for Medicare
  • Child aged off
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32
Q

What are 3 reasons why a member may not be eligible for COBRA

A
  • Termination was due to the member not paying premiums
  • Employee gains group coverage or Medicare
  • Employer terminates all group plans
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33
Q

What does HIPAA stand for

A

Health Insurance Portability and Accountability Act of 1996

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34
Q

As far as gaining new coverage, what was one of the purposes of HIPAA

A

Made insurance portable, by allowing members that have changed jobs to obtain new group health coverage without having to satisfy a new pre-existing condition period or a new probationary period

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35
Q

What are 3 examples of PHI that HIPAA says you can’t share

A
  • Individual’s health (mental and physical)
  • Care provided to the individual
  • Payments made for the individual to receive care
36
Q

When can a covered entity share PHI (2)

A
  • With written authorization of the patient

- As permitted under the Rule

37
Q

When does a covered entity have to provide PHI upon request to: (2)

A
  • An individual or representative

- Department of Health and Human Services

38
Q

What must covered entities state in their privacy noticies

A
  • It’s duties to protect privacy
  • An individuals’ rights
  • Contact information if an individual needs more information or has a complaint
39
Q

What plans are not subject to HIPAA

A

Pretty much everything but Medical, dental and Medicare

40
Q

Under HIPAA, a group health plan may not discriminate on what? (6)

A
  • Health status
  • Health history
  • Genetic information
  • Disability
  • Mental illness
  • Claims experience
41
Q

What is the maximum number of months that a plan can have a pre-existing conditions limitations

A

12 months

42
Q

What is the maximum number of months that a plan can have a pre-existing conditions limitations for late enrollees

A

18 months

43
Q

How can a member reduce the pre-existing condition limitation

A

If they have creditable coverage and enroll in new coverage within 63 days of termination from prior coverage

44
Q

What are examples of plans that are creditable

A
  • Group
  • COBRA
  • HMO
  • Individual
  • Medicare
  • Medicaid
45
Q

What are some examples of plans that are not creditable

A

Limited policies such as dental or vision

46
Q

Under the pre-existing conditions limitations, within how many months would a pre-existing conditions limitations be set

A

Limitations would only apply if it is a condition that was or should have been treated within 6 months prior to enrollment

47
Q

Can pregnancy be considered a pre-existing condition and thus excluded

A

No

48
Q

During open enrollment period, what is the pre-existing condition limitation

A

States that an insurer may look back no more than 6 months to determine if a pre-existing condition exists, and if found, can only exclude that condition for a maximum of 6 months (total of 12 month look back period)

49
Q

What is the look back period for a late enrollees

A

6 months before and 12 months after enrollment (total of 18 month look back period)

50
Q

How do commercial insurers pay for hospital and medical coverage

A

On a reimbursement basis

51
Q

Who is reimbursed in commercial insurance

A

The member is reimbursed for any portions that they paid

52
Q

How does the provider get paid in the reimbursement model for commercial insurance

A

The insured may assign the insurance proceeds to the provider so that they can be paid directly

53
Q

Define a closed panel HMO

A

It is an HMO that has its own doctors and members must see these doctors

54
Q

Define an open panel HMO

A

HMO will contract with doctors to provide services to their members, however, the contracted doctors may also treat other members who are not in the HMO

55
Q

What does each member in HMO have to choose

A

A PCP

56
Q

In an HMO, who is the gate keeper

A

The PCP and they offer referrals to specialists when necessary

57
Q

Do you have deductibles and coinsurance in HMO

A

No

58
Q

What does a member have to pay for when they go see a doctor in an HMO

A

They have to pay a copayment (could be a dollar amount or a percentage)

59
Q

Define an opt-out provision

A

Allows a member to see OON providers (benefits may be reduced and there may be a deductible)

60
Q

What is similar about PPO to an HMO

A

PPOs can also be formed on an open and closed panel basis.

61
Q

What is an open panel PPO

A

It is a fee-for-service model

62
Q

What does EPO stand for

A

Exclusive provider organization

63
Q

Define an EPO

A

You can use any provider within the EPO network, however, you cannot receive OON benefits

64
Q

Define a point-of-service (POS) plan

A

Allows a participant to seek treatment within an HMO or PPO network or from an OON on a major medical basis

65
Q

How does a POS plan work with OON

A

It’s like our coverage (higher OON deductibles and copays)

66
Q

What are two different types of POS plans

A
  • Open ended HMO

- Gatekeeper PPO

67
Q

What are the three payments for HMO, PPO and POS plan

A
  • HMO is a prepaid plan
  • PPO Fee for service plan
  • POS plan is a fee for service when using OON
68
Q

What type is more comprehensive

A

An HMO (ex - covering labs and home health care)

69
Q

What types may have a more limited range of services

A

PPOs and POSs

70
Q

What are three plan types that are forms of managed care

A
  • HMOs
  • PPOs
  • POSs
71
Q

What does managed care try and do to help control costs

A
  • Cost control techniques
  • Sharing of financial risk between providers and consumers
  • Management of the use of health care services
72
Q

In order to help control costs, how does managed care help shift some of the costs to the members

A
  • Deductibles
  • Coinsurance
  • Exclusions and limitations
  • Benefit maximums
73
Q

In order to help control costs, what are methods that managed care uses (besides shifting cost to the member)

A
  • Have a PCP act as a gatekeeper
  • Offer benefits that could result in a less costly claim
  • Provide prevention care benefits (physical exam)
74
Q

Who can select the surgeon for a second opinion

A

The insurer

75
Q

How do the costs work with a second opinion

A

Insurance would cover the second opinion or reduce benefits if the second opinion is not obtained or the member elects the surgery even though the second opinion said that they didn’t need one

76
Q

Define precertification

A

Prior authorization - the insured will provide full benefits if this is obtained

77
Q

What if no precertification is granted

A

Then benefits could be paid at a lower level or not at all

78
Q

Define concurrent review

A

Monitoring a patient’s hospital stay in terms of length and seeing if other alternatives will work

79
Q

What are 4 benefits included in workers comp

A
  • Medical
  • Disability income
  • Death or survivor
  • Rehab
80
Q

Can an employer self insurer for workers comp

A

Yes

81
Q

How are medical benefits covered under workers comp

A

Will cover medical, surgical, hospital, nursing, ambulance, drugs, and medical devices without any time limit, dollar limit, deductible or copay (basically cover everything without having the member pay)

82
Q

What are two things that determine how much and for how long workers comp will pay for disability income

A
  • How much in wages the member lost

- Whether the disability is total or partial and permanent or temporary

83
Q

What is provided under death and survivor benefits under workers comp

A

Covers the cost of burial and provides income to the unmarried spouse and dependent children

84
Q

How does sick leave and vacation work if a member is off work due to disability

A

The member will accrue sick and vacation leave while they are off of work

85
Q

Under HIPAA, can the limitations for pre-existing conditions be reduced based on the length of creditable coverage

A

Yes

Disability Income Insurance (9 decks)

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