Module 5 Quiz Flashcards
Which one of the following is not a typical way to plan for the management of property if a client becomes incapacitated?
A) Nominate a conservator for the property.
B) Spend down the assets.
C) Create a durable power of attorney.
D) Create a trust.
B) Spend down the assets.
Spending down assets has limited usefulness in planning for incapacity. It is clearly not a recommended action prior to incapacitation, and the negative effects outweigh the positive that might accrue if a person became incapacitated.
All of the following are true regarding living wills EXCEPT
A) they must be signed.
B) they apply to routine illnesses.
C) they must be witnessed by people who are not heirs of the maker.
D) they allow the maker to dictate what life-sustaining measures may be taken if the maker becomes incapable of consenting to treatment.
B) they apply to routine illnesses.
Living wills apply only when the maker has a terminal illness and death is imminent.
Which one of the following is true regarding Medicare Part A?
A) It pays doctor bills.
B) It helps pay for care in a skilled nursing facility for up to 100 days.
C) It costs approximately $413 per month for most individuals.
D) It covers outpatient hospital care.
B) It helps pay for care in a skilled nursing facility for up to 100 days.
Within certain parameters, Medicare Part A helps pay for care in a skilled nursing facility. Medicare Part A is free for most recipients (who have worked in covered employment for at least 40 quarters). Doctor bills and outpatient hospital care are covered by Medicare Part B. On the other hand, Medicare has only very limited coverage for long-term care. Having Medicare does not mean a person has adequate LTC coverage. Medicare LTC coverage should be seen as rehabilitative care rather than as true LTC.
Inpatient hospital care under Medicare Part A coverage includes all the following costs except
A) inpatient prescription drugs.
B) private rooms.
C) operating and recovery rooms.
D) meals.
B) private rooms.
Inpatient hospital care includes costs for semiprivate rooms, meals, operating and recovery rooms, and prescription drugs. It does not cover the cost of private rooms.
Which of the following costs is not normally covered by Medicare Part B?
A) Prescription drugs
B) Physician services
C) Preventive care
D) Home health care
A) Prescription drugs
Medicare Part B does not normally cover eyeglasses, cosmetic surgery, most prescription drugs, and other types of expenses. Note that preventive care is covered under Part B.
Which of the following is not an acceptable strategy for filling gaps between actual costs and Medicare coverage?
A) maintaining coverage through an employer-provided health plan
B) for low-income seniors, qualifying for Medicaid
C) enrolling in Medicare Advantage and purchasing a coordinating Medigap policy
D) purchasing Medigap policies from private vendors
C) enrolling in Medicare Advantage and purchasing a coordinating Medigap policy
People who enroll in a Medicare Advantage plan cannot also maintain a Medigap insurance policy. Purchasing Medigap insurance, maintaining coverage through an employer-provided health plan, and qualifying for Medicaid are all plausible strategies to fill gaps between actual costs and Medicare coverage.
All the following are health plan options under Medicare Advantage plans EXCEPT
A) health maintenance organizations (HMOs).
B) private fee-for-service plans.
C) Medicaid provider plans (MPPs).
D) preferred provider organizations (PPOs).
C) Medicaid provider plans (MPPs).
There is no such entity as a Medicaid provider plan. All other options are available under Medicare Advantage plans.
Which one of the following is not correct regarding a conservatorship?
A) The required court hearing is a matter of public record.
B) A conservator is given responsibility for managing the affairs of an individual who can no longer make his or her own decisions.
C) A conservatorship is granted by the beneficiary.
D) The court may require the posting of a performance bond.
C) A conservatorship is granted by the beneficiary.
A conservator is named, or granted authority, by the court. A conservator is responsible for managing the financial affairs of an individual who can no longer make his or her own decisions.
Provisions of the Affordable Care Act include all of the following EXCEPT
A) certain preventive care services must now be provided with no cost sharing on the consumer’s part.
B) children can remain on their parents’ health insurance until age 26.
C) health savings accounts (HSAs) can now be used to cover over-the-counter medicines not prescribed by a doctor.
D) the establishment of www.healthcare.gov.
C) health savings accounts (HSAs) can now be used to cover over-the-counter medicines not prescribed by a doctor.
The provisions prohibit both HSAs and FSAs from being used for over-the-counter medicines not prescribed by a doctor.
All of the following are true about the deductibles that apply to health insurance EXCEPT
A) a deductible is the amount that the insured must pay before the plan pays anything.
B) the deductible for catastrophic and bronze plans will be larger than for gold or platinum plans.
C) health insurance deductibles apply per incident.
D) deductibles do not apply to many forms of preventive care.
C) health insurance deductibles apply per incident.
Unlike a homeowners or automobile policy, a health insurance deductible is an annual amount, not a per incident amount. Preventive care and wellness benefits, such as mammograms and well-baby care, are often paid 100% by the insurance company without a required deductible.
Regarding planning for incapacity, which one of the following is a true statement?
A) A living will is broader in scope than an advanced medical directive.
B) A living will is another name for a medical proxy.
C) A conservatorship is simpler to establish and maintain than a durable power of attorney.
D) A power of attorney may not be recognized by some financial institutions.
D) A power of attorney may not be recognized by some financial institutions.
A power of attorney may not be recognized by some financial institutions, which is a reason that it should always be kept up-to-date. A living will applies only to life-sustaining measures whereas an advanced medical directive, or medical proxy, does not require a terminal illness and typically covers all health care situations where the principal is unable to give informed consent. A conservatorship requires an appointment by a court, ongoing record-keeping, and possibly a performance bond.
Custodial care helps individuals perform activities of daily living (ADLs). ADLs do not include
A) driving.
B) bathing.
C) dressing.
D) transferring.
A) driving.
Driving is not an ADL. Dressing, bathing, eating, toileting, continence, transferring, and feeding oneself are considered ADLs.
Most long-term care (LTC) policies cover services related to
A) cognitive impairment.
B) attempted suicide.
C) alcoholism.
D) war-related illnesses.
A) cognitive impairment.
Although some LTC policies exclude service related to Alzheimer’s disease, policies sold in states that have adopted the National Association of Insurance Commissioners’ Long-Term Care Insurance Model Regulation must cover cognitive impairment. Most policies exclude services related to attempted suicide, alcoholism, or drug addiction and war-related illnesses.
Which of these is FALSE regarding the tax-deductibility of qualified long-term care insurance (QLTCI) premiums?
A) Individuals and couples filing jointly can deduct medical expenses that exceed 7.5% of adjusted gross income (AGI). QLTCI premiums qualify as medical expenses.
B) Partners can deduct QLTCI premiums as a business expense.
C) QLTCI premiums are deductible for the first premium year only, after which they are no longer deductible.
D) Self-employed individuals can deduct QLTCI premiums as a business expense.
C) QLTCI premiums are deductible for the first premium year only, after which they are no longer deductible.
The deductibility of QLTCI premiums does not expire after the first year. There are no known plans for such an expiration date to be implemented.
Which of the following is true regarding Medicare coverage of long-term care (LTC) expenses?
A) Medicare will cover expenses for individuals who move into LTC facilities without being hospitalized.
B) Medicare will cover LTC expenses in any facility of the individual’s choosing.
C) A doctor must certify the need for skilled nursing care or else Medicare will not pay expenses.
D) Medicare covers expenses for up to five years of LTC.
C) A doctor must certify the need for skilled nursing care or else Medicare will not pay expenses.
Medicare will not pay expenses unless a doctor has certified the need for skilled nursing care. A hospital stay is required prior to being eligible for long-term care coverage and it must be rehabilitative care. Medicare will only pay for long-term care for 20 days with no coinsurance and then only up to another 80 days (100 total) with coinsurance applied. Care must be delivered at a Medicare-approved facility.
