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Health Insurance (Exam FX) Questions and Answers Latest Version Graded A+
What is the main function of health insurance?✔✔ To help pay for medical expenses and reduce out-of-pocket costs.
What is a premium in a health insurance policy?✔✔ The amount paid regularly to maintain coverage.
What is a deductible?✔✔ The amount the insured must pay before the insurance company begins to pay.
What is coinsurance?✔✔ The percentage of medical costs shared between the insured and the insurer after the deductible is met.
What is a copayment?✔✔ A fixed amount paid by the insured for a covered medical service.
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What is the purpose of an HMO plan?✔✔ To provide managed care with an emphasis on preventive services and cost control.
Who coordinates care in an HMO plan?✔✔ A primary care physician.
What is the primary advantage of a PPO plan over an HMO plan?✔✔ More flexibility in choosing healthcare providers.
What does the term “pre-existing condition” refer to?✔✔ A health issue that existed before the start of a new insurance policy.
What does HIPAA protect?✔✔ The privacy and portability of health information and insurance coverage.
What does COBRA allow an employee to do?✔✔ Continue group health insurance after leaving a job, at their own expense.
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What is a waiting period in health insurance?✔✔ The time before certain coverages or benefits begin.
What does Medicare Part A cover?✔✔ Hospital stays, skilled nursing care, and some home health services.
What does Medicare Part B cover?✔✔ Doctor visits, outpatient services, and medical supplies.
What is a health savings account (HSA)?✔✔ A tax-advantaged savings account used to pay for qualified medical expenses.
What type of insurance provides benefits if a person becomes disabled and can’t work?✔✔ Disability income insurance.
What is the purpose of long-term care insurance?✔✔ To cover the costs of extended care services such as nursing homes or in-home care.
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