What does a Hospital Confinement indemnity policy pay for?
Pays a specified daily amount while the insured is confined to a hospital
Medical expense policies will typically cover which of the following?
injuries caused by accident
Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay?
900
A dread disease policy is considered to be a type of
A limited health insurance policy
All of these are characteristics of a major medical expense policy EXCEPT
elimination periods
All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT
Health Reimbursement Arrangement Plan
What does the term coinsurance refer to?
After the deductible is satisfied, the percentage paid by the insured for the remaining covered expenses
A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of $75. If the insured has previously met her deductible and receives a bill for $175, how much will the insurer pay?
The correct answer is "$140". Because the insured has previously met her deductible, the eligible expenses for a claim is the entire $175. The insurance company pays 80% of $175, or $140.
Which of the following does specified disease insurance NOT cover?
costs covered by medical expense insurance
Medical Expense Insurance would cover
an injury occurring at the insured's residence
Which of the following is NOT included in comprehensive major medical plans?
first dollar coverage
All of the following are qualifications for establishing a health savings account (HSA) EXCEPT
enrolled in a health plan with a prescription drug benefit
Which of the following terms is NOT associated with a Major Medical policy?
capitation
At what point does a self-insured group qualify for stop-loss coverage?
after claims exceed a specified limit in a set period of time.
A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment
indicates a preexisting condition.