Other Accident/Health Products Flashcards
Hospital Indemnity Policies
Might pay a set dollar amount for each day of hospitalization
Hospital Indemnity Policies: Money might be spent on…
Expenses besides care, unrelated to actual hospital charges
Dread Disease/Critical Insurance
Only pays when insured person is diagnosed with a specific illness named in policy
Dread Disease/Critical Insurance is also called…
Cancer Insurance
Dread Disease/Critical Insurance often pays…
Lump sum
Dread Disease/Critical Insurance: Money isn’t based on…
Actual expenses and doesn’t need to be used for medical bills
HSA stands for…
Health Savings Account
HSA
Tax-free contributions to pay for care
HSA: Money can be carried over…
Year to Year
HSA: Money belongs to…
The individual and is portable from job to job
HSA: Typically requires enrollment in…
High deductible health plan
HSA: Money must only be used on…
Eligible expenses, not insurance premiums or OTC drugs
HDHP: For favorable HSA tax treatment, deductibles must be at least…
Equal to amount set by federal law
HSA: Contributions are exempt from…
Payroll and income taxes
HSA: Contributions can be invested in…
Sub-accounts and grow tax-free
HSA: Withdrawls are…
Tax-free if used for qualified medical expenses
HSA: If withdrawls are used on non-qualified expenses…
20% penalty plus income taxes
HSA: Seniors are exempt from…
20% tax penalty but still owe some regular income taxes
FSA stands for…
Flexible Spending Accounts
FSA
Pre-tax dollars from employers and employees are used for care
FSA: Withdrawls are…
Not taxed
FSA: Amounts generally…
Cannot be carried over from year to year
FSA: Has occasional, limited exceptions but…
Only at employer’s option
HRA stands for…
Health Reimbursement Arrangement
HRA
Employer reimburses employees for their medical care up to a certain amount
HRA: Unused portions can…
Carry over to new year
HRA: Employer…
Owns and funds the account and keeps money if employee leaves
Dental Care
Purchased separately or as an add-on to major medical insurance
Dental: Tends to cover…
Preventative care annually with little or no cost-sharing
Dental: Common procedures often covered with…
Intermediate amount of cost-sharing (80/20 split)
Dental: Major dental work and dentures require…
Greater cost-sharing (50/50 split)
Vision Care
Often bought separately or as an add-on to major medical
Vision: Basic coverage often limited to…
Annual checkups and new glasses/contacts every 2 years
Vision: Serious eye illnesses tend to be covered by…
Major medical insurance
Short-Term/Temporary Medical Insurance
Intended to fill brief gaps in major medical insurance
Temp: Time frame
Less than 1 year at federal level, 6 months in IL
Temp: Lacks consumer protection of major medical insurance
Exempt from ACA; Might not cover pre-existing conditions; Limited benefits and caps; Might not be guaranteed renewable
