Chapter 11 – Health, Disability, and Long-Term Care Insurance
1. (p. 348) The United States has the lowest per capita medical expenditures of any industrialized
country in the world.
2. (p. 347) Affordable health care has become one of the most important issues of our time.
3. (p. 350) One reason for the high cost of health care is the use of sophisticated and expensive
technologies.
4. (p. 352) The best way to avoid the high cost of illness is to stay well.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
5. (p. 352) To stay healthy, you must get sufficient rest, relaxation, and exercise.
6. (p. 353) The number of Americans without basic health insurance has been decreasing since
the 1980s.
7. (p. 353) Health insurance includes both medical expense insurance and disability income
insurance.
8. (p. 354) Group health insurance plans comprise about 90 percent of all health insurance issued
by health and life insurance companies.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
9. (p. 354) Group health insurance will cover you but not your immediate family.
10. (p. 354) Individual health insurance covers either one person or a family.
11. (p. 354) Make sure you have enough insurance, but don’t over insure.
12. (p. 354-355) Very few group health policy contracts have a coordination of benefits provision.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
13. (p. 355) A good health insurance plan should offer basic coverage for hospital and doctor
bills.
14. (p. 356) A good health insurance plan should impose no unreasonable exclusions.
15. (p. 356) More people have hospital insurance than any other kind of health insurance.
16. (p. 356) People often buy surgical expense insurance in combination with hospital expense
insurance.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
17. (p. 356) Physician expense insurance coverage excludes visits to the doctor’s office, x-rays,
and lab tests.
18. (p. 356) Basic health insurance coverage includes hospital expense insurance, surgical
expense insurance, and physician expense insurance.
19. (p. 356) A deductible provision requires the policyholder to pay a basic amount before the
policy benefits begin.
20. (p. 356) Hospital expense insurance pays part or all of the hospital bills for room, board, and
other charges.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
21. (p. 356) Surgical expense insurance pays part or all of the surgeon’s fees for an operation.
22. (p. 356) Physician expense insurance helps pay for physician’s care that does not involve
surgery.
23. (p. 356) Physician expense insurance is expensive, therefore, it should be avoided.
24. (p. 356) A coinsurance provision requires the policyholder to share the expenses beyond the
deductible amount.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
25. (p. 357) A stop-loss provision requires the policyholder to pay up to a certain amount, after
which the insurance company pays 100 percent of all remaining covered expenses.
26. (p. 357) A hospital indemnity policy pays benefits only when you are hospitalized and only
to the hospital where the care was provided.
27. (p. 357) The hospital indemnity policy is a good substitute for basic or major medical
protection.
28. (p. 357) Dread disease and cancer policies are usually very good values.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
29. (p. 358) Long-term care insurance was virtually unknown 25 years ago, but now it is
growing faster than any other form of insurance.
30. (p. 364) Blue Cross plans provide for surgical and medical services performed by
physicians.
31. (p. 364) Blue Shield plans provide hospital care benefits on essentially a “service type”
basis.
32. (p. 365) Preferred Provider Organizations combine the best elements of the fee-for-service
and HMO systems.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
33. (p. 368) Public opinion polls consistently show that Americans are happy with the nation’s
health care system.
34. (p. 369) Part A of Medicare pays for all covered services for inpatient hospital care after you
pay a single annual deductible.
35. (p. 372) Medigap insurance, intended to supplement Medicare, is sold and serviced by the
federal government.
36. (p. 372) Medicaid is administered by each state within certain broad federal requirements and
guidelines.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
37. (p. 372) Medicare does not cover the expenses of private-duty nursing care.
38. (p. 368) Two sources of government health insurance are Medicare and Medicaid.
39. (p. 369) Medicare has two parts: hospital insurance (Part A) and medical insurance (Part B).
40. (p. 369) Medicare hospital insurance (Part A) is financed from a portion of the Social
Security tax.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
41. (p. 369) To get Medicare medical insurance (Part B) you must sign up for it and pay a
monthly premium.
42. (p. 371) Skilled nursing care beyond 100 days per benefit period is approved and covered by
Medicare.
43. (p. 372) Medicare covers routine checkups, dental care, most immunizations, cosmetic
surgery, routine foot care, eyeglasses, and hearing aids.
44. (p. 372) Medicare covers the cost of care received outside the United States, Canada, and
Mexico.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
45. (p. 372) Medicare was never intended to pay all medical costs.
46. (p. 372) Medicare Supplement insurance is a government-sponsored program.
47. (p. 372) Title XIX of the Social Security Act provides for a program of medical assistance to
certain low-income individuals and families.
48. (p. 372) Medicaid is financed by both state and federal funds.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
49. (p. 372) Very few members of the Medicaid population are also covered by Medicare.
50. (p. 372) Medicaid differs from Medicare because eligibility for Medicaid depends on having
very low income and assets.
51. (p. 372) Because Medicaid coverage is very limited, people using it need to purchase
supplemental insurance.
52. (p. 376) Disability income insurance benefits provide regular cash income lost by employees
as the result of an accident or illness.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
53. (p. 372) Once a person is eligible, Medicaid provides more benefits than does Medicare.
54. (p. 377) Just about every worker is adequately covered by disability income insurance.
55. (p. 376) Most people are more likely to lose their income due to death than due to disability.
56. (p. 377) Good disability plans pay when you are unable to work at your regular job; poor
disability plans pay only when you are unable to work at any job.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
57. (p. 377) Disability benefits begin on the first day you are disabled.
58. (p. 377) Generally, disability income policies with shorter waiting periods have lower
premiums.
59. (p. 377) You should seek a disability policy that pays benefits for life.
60. (p. 377) Look for a disability income policy that waives premiums while you are disabled.
Chapter 11 – Health, Disability, and Long-Term Care Insurance
61. (p. 377) The premium for noncancelable and guaranteed renewable coverage is higher, but
the coverage is well worth the extra cost.
62. (p. 378) Some employers provide disability income protection for their employees through
group insurance plans.
63. (p. 378) Unfortunately, most salaried workers in the United States do not participate in the
Social Security programs.
64. (p. 347) The affordability of which one of these is one of the most important social issues of
our time?
Chapter 11 – Health, Disability, and Long-Term Care Insurance
65. (p. 348) Which country has the highest per capita medical expenditures of any industrialized
country in the world?
66. (p. 351) Which of the following groups have undertaken innovative activities to contain the
costs of health care?
Chapter 11 – Health, Disability, and Long-Term Care Insurance
67. (p. 342) Which of the following is an (are) innovative way(s) concerned groups are
containing health care costs?
68. (p. 341) What are some possible reasons for high and rising costs of health care?
69. (p. 352) What can you do to reduce your health care costs?
Chapter 11 – Health, Disability, and Long-Term Care Insurance
70. (p. 353) Why are a growing number of students without health insurance?
71. (p. 353) Health insurance includes:
72. (p. 354) Most health insurance policies in the United States are sold to:
Chapter 11 – Health, Disability, and Long-Term Care Insurance
73. (p. 354) Which type of health insurance policy may not cover all of your health insurance
needs or may deny benefits if you lose your job?
74. (p. 356) Which type of health insurance pays part or all of an insured’s hospital bills for
room, board, and other charges?
75. (p. 356) Harry Mayhue gets a bad case of the flu and ends up in the hospital for three days.
Which part of his basic insurance coverage should help pay for this stay?