Health Insurance: Do You Understand the Basics?

1. Comprehensive health insurance...

A. Provides funds for health care if you are sick or injured

B. Provides funds to pay for preventive care

C. Both of the above

D. Neither of the above

Correct!

Wrong!

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2. True or False: If you don’t have health insurance, a trip to the ER or an overnight stay at the hospital could cost you thousands of dollars.

True

False

Correct!

Wrong!

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3. When you’ve paid the maximum out-of-pocket cost for your plan, the insurance company will...

A. Pay covered medical services for the remainder of the plan year

B. Pay covered medical services for the next six months

C. Bill your employer for medical costs for the remainder of the year

D. Cancel coverage and you’ll have to sign up for a new policy

Correct!

Wrong!

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4. Health Maintenance Organization (HMO) plans differ from Preferred Provider Organization (PPO) plans because...

A. HMO plans generally cost less but require you to see an in-network provider

B. PPO plans generally have a broad list of network providers you can choose from

C. PPO plans allow you to see an out-of-network provider, typically with a higher copayment or coinsurance

D. All of the above

Correct!

Wrong!

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5. A health insurance deductible is best described as...

A. The amount taken from your paycheck to provide you with health insurance

B. The annual amount you are required to pay for health-care expenses before your insurance kicks in

C. The amount you pay at the doctor’s office each visit

D. The total amount you can be required to pay for your health care in any given year

Correct!

Wrong!

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6. Which of the following should you consider when evaluating health insurance providers?

A. Covered services and premiums

B. The physician network, if applicable

C. Your total expected out-of-pocket costs

D. All of the above

Correct!

Wrong!

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7. A health insurance copayment is best defined as...

A. Your share of your health insurance premiums as deducted from your paycheck

B. A fixed dollar amount that you pay each time you visit the doctor, with your health insurance company paying the remainder, until your deductible is met

C. A fixed dollar amount you pay toward each medical service you receive after your plan’s deductible has been satisfied

D. A pool of money, established under the Affordable Care Act, that offsets the cost of insurance premiums for lower-income insureds

Correct!

Wrong!

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8. Health insurance can benefit you financially because it...

A. Can help protect you from financial hardship

B. Can limit your liability for medical costs

C. Both of the above

D. Neither of the above

Correct!

Wrong!

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