Health Insurance: Do You Understand the Basics?

1. Health insurance . . .

Provides funds for health care if you become ill

Provides funds to pay for preventive care

Both a and b

None of these

Correct!

Wrong!

-

2. A health insurance premium is best described as . . .

The amount paid every five years for coverage

The amount paid monthly for coverage

The amount paid weekly for coverage

The amount paid biweekly for coverage

Correct!

Wrong!

-

3. True or False: A trip to the ER or an overnight stay at the hospital could cost you thousands of dollars.

True

False

Correct!

Wrong!

-

4. When you’ve paid the maximum pocket cost for your plan, the insurance company will . . .

Cover medical services for the remainder of the year

Cover medical services for the next six months

Cover medical services for the next three months

Cover medical services for the next five years

Correct!

Wrong!

-

5. HMO plans differ from PPO plans because . . .

HMO plans require you to see an in-network provider

HMO plans do not require you to see an in-network provider

PPO plans require you to see an in-network provider

The two plans are identical

Correct!

Wrong!

-

6. A deductible is best described as . . .

The maximum amount your provider will pay for medical expenses in a year

Your total of pocket costs before the insurance company will start to pay claims

The percentage of medical costs your insurance provider will pay annually

None of these

Correct!

Wrong!

-

7. True or False: You could be assessed a fine at tax time if you don’t have health insurance.

True

False

Correct!

Wrong!

-

8. Which of the following should you consider when evaluating providers?

Covered services and premiums

The physician network

The provider’s reputation

All of these

Correct!

Wrong!

-

9. Coinsurance is . . .

The amount ofmedical expenses you’re responsible for after the copayment is met

The amount ofmedical expenses you’re responsible for after the deductible is met

The amount of medical expenses you’re responsible for after the copayment and deductible are met

None of the above

Correct!

Wrong!

-

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

Can prevent you from going bankrupt

Can limit your liability for medical costs

Both and b

None of these

Correct!

Wrong!

-

11. If you have a pre-existing medical condition . . .

You cannot qualify for health insurance

You may be offered coverage at a higher rate

You will most likely receive discounted premiums

None of these

Correct!

Wrong!

-

12. A copayment is . . .

The out-of-pocket cost of a prescription drug when you receive it

The out-of-pocket cost you’ll have to pay at the time of service

Both a and b

None of the above

Correct!

Wrong!

-

JOIN OUR COMMUNITY OF EDUCATORS TO HELP MOVE FINANCIAL LITERACY FORWARD