9.2 Health Insurance

All of the following statements are true EXCEPT:

• health risks can be unpredictable

• health risks are uncommon for young people

• health risks can be quite unexpected

• health risks can be catastrophic

For young adults, average health expenses are minimal but they may include:

• visiting a doctor because of an injury

• going to a hospital emergency room because of an accident

• obtaining a prescription for medicine

• visiting a doctor because of an injury, going to a hospital emergency room because of an accident, and/or obtaining a prescription for medicine

The Patient Protection and Affordable Care Act of 2010 is sometimes called:

I. Obamacare

II. The U.S. Health Care System

III. The Affordable Care Act

• I only

• I and III only

• II and III only

• I, II, and III

A government-supported health insurance program that is designed to provide coverage to those currently living in poverty is called:

• Medicaid

• Medicare

• Obamacare

• the Affordable Care Act

Coinsurance is the sharing of costs between the individual and the health insurance company. Which of the following statements are also TRUE about coinsurance?

I. the maximum amount an individual must pay is called the out-of-pocket maximum

II. common coinsurance rates are 80/20

III. the total coinsurance paid by individuals is capped

IV. coinsurance is sometimes called a copay or copayment

• II, III, and IV

• I, III, and IV

• I, II, and IV

• I, II, and III

Which of the following statements is TRUE about health insurance?

• an insurance copay is the maximum amount the insured individual is subject to pay

• a common insurance deductible is 80/20

• an insurance copayment is a percentage fee an insured individual must pay to receive healthcare services

• an insurance deductible is the amount that the insured individual must pay before the health insurance company will pay any money

Which of the following statements are TRUE?

• health care is free if you have health insurance

• receiving healthcare services is more affordable if you have health insurance

• coinsurance and copayments are waived in the event of a true medical emergency

• individuals who purchase their health insurance through an employer are eligible for the Advanced Premium Tax Credit

Domingo has a health insurance policy with the following provisions: $500 deductible, $50 copay, and 80/20 coinsurance provision. If Domingo has an accident that costs $3,000 in medical expenses, how much will he have to pay out of pocket?

• $450

• $550

• $1,040

• $2,450

Answer explanation

$3,000 - $500 - $50 = ?

? x 20% = ??

$500 + $50 + ?? = $1,040

A health savings account (HSA) is a tax-advantaged savings account that can be set up to pay out-of-pocket healthcare expenses. What else is TRUE of HSAs?

• HSAs are great tools for healthcare expense and retirement goals

• HSAs are exactly like IRAs

• Distributions for out-of-pocket healthcare expenses are subject to income taxes

• Money in HSAs must be used for healthcare expenses

Which of the following is NOT a qualified medical expenses within a flexible spending account?

• prescription drugs

• health insurance deductibles

• dental expenses

• long-term care premiums