Test Bank Kapoor 13e chapter 11 PDF

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Test bank for Personal Finance 13th Edition

By Jack Kapoor and Les Dlabay and Robert J. Hughes and Melissa Hart
ISBN10: 1260013995
ISBN13: 9781260013993...

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Personal Finance, 13e (Kapoor) Chapter 11 Health, Disability, and Long-Term Care Insurance 1) The United States has the lowest per capita medical expenditures of any industrialized country in the world. Answer: FALSE Difficulty: 2 Medium Topic: Medical costs Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 2) Affordable health care has become one of the most important social issues of our time. Answer: TRUE Difficulty: 1 Easy Topic: Medical costs Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 3) One reason for the high and rising costs of health care is the use of sophisticated and expensive technologies. Answer: TRUE Difficulty: 1 Easy Topic: Medical costs Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic

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4) One way to reduce your own medical costs is to stay well. Answer: TRUE Difficulty: 1 Easy Topic: Personal costs of health care Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 5) The prescription to stay healthy includes getting sufficient rest, relaxation, and exercise. Answer: TRUE Difficulty: 1 Easy Topic: Personal costs of health care Learning Objective: 11-01 Explain why the costs of health insurance and health care have been increasing. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 6) Health club membership is a form of protection to alleviate the financial burdens individuals suffer from illness or injury. Answer: FALSE Difficulty: 2 Medium Topic: Personal costs of health care Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 7) Group health insurance will cover you, but not your immediate family. Answer: FALSE Difficulty: 2 Medium Topic: Group health insurance Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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8) Individual health insurance covers either one person or a family. Answer: TRUE Difficulty: 1 Easy Topic: Health insurance policy provisions Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 9) Very few group health insurance policies have a coordination of benefits provision. Answer: FALSE Difficulty: 2 Medium Topic: Coordination of benefits Learning Objective: 11-02 Define health insurance and disability income insurance and explain their importance in financial planning. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 10) A good health insurance plan should offer basic coverage for hospital and doctor bills. Answer: TRUE Difficulty: 1 Easy Topic: Health insurance policy provisions Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 11) A good health insurance plan should impose no unreasonable exclusions. Answer: TRUE Difficulty: 1 Easy Topic: Health insurance policy provisions Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic

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12) More people have hospital insurance than any other kind of health insurance. Answer: TRUE Difficulty: 1 Easy Topic: Insurance Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 13) People often buy surgical expense insurance in combination with hospital expense insurance and physician expense insurance. Answer: TRUE Difficulty: 1 Easy Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 14) Physician expense insurance coverage excludes visits to the doctor's office, x-rays, and lab tests. Answer: FALSE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 15) Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance. Answer: TRUE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written onsent of McGraw-Hill Education.

16) A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin. Answer: TRUE Difficulty: 1 Easy Topic: Health insurance policy provisions Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 17) Hospital expense insurance pays part or the full amount of hospital bills for room, board, and other charges. Answer: TRUE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 18) Surgical expense insurance pays part or the full amount of the surgeon's fees for an operation. Answer: TRUE Difficulty: 1 Easy Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 19) Physician expense insurance helps pay for physician's care that does not involve surgery. Answer: TRUE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 5 Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written onsent of McGraw-Hill Education.

20) A recent study by Americans for Long-Term Care Security found that one out of five Americans over age 30 is at risk of needing some form of long-term care within the next 12 months. Answer: FALSE Difficulty: 3 Hard Topic: Long-term care insurance Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 21) A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount. Answer: TRUE Difficulty: 1 Easy Topic: Health insurance policy provisions Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 22) 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. Answer: TRUE Difficulty: 2 Medium Topic: Health insurance policy provisions Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic

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23) A hospital indemnity policy pays benefits directly to the hospital only when you are hospitalized. Answer: FALSE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 24) The hospital indemnity policy is a good substitute for basic or major medical protection. Answer: FALSE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 25) Dread disease and cancer policies are usually very good values. Answer: FALSE Difficulty: 2 Medium Topic: Types of medical insurance coverage Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 26) Long-term care insurance was virtually unknown 50 years ago, but it is now growing faster than any other form of insurance. Answer: TRUE Difficulty: 1 Easy Topic: Long-term care insurance Learning Objective: 11-03 Analyze the benefits and limitations of the various types of health care coverage. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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27) Blue Cross plans provide for surgical and medical services performed by physicians. Answer: FALSE Difficulty: 2 Medium Topic: Group health insurance Learning Objective: 11-04 Evaluate private sources of health insurance and health care. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 28) Blue Shield plans provide hospital care benefits on essentially a "service type" basis. Answer: FALSE Difficulty: 2 Medium Topic: Group health insurance Learning Objective: 11-04 Evaluate private sources of health insurance and health care. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 29) Preferred provider organizations combine the best elements of the fee-for-service and HMO systems. Answer: TRUE Difficulty: 1 Easy Topic: Preferred provider and other organizations Learning Objective: 11-04 Evaluate private sources of health insurance and health care. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 30) Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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31) Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government. Answer: FALSE Difficulty: 1 Easy Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 32) Medicaid is administered by each state within certain broad federal requirements and guidelines. Answer: TRUE Difficulty: 2 Medium Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 33) Medicare does not cover the medical expenses of private-duty nursing care. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 34) The two best-known sources of government health insurance are Medicare and Medicaid. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements; Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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35) Medicare originally had two parts: hospital insurance and medical insurance. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 36) Medicare hospital insurance is financed from a portion of the Social Security tax. Answer: TRUE Difficulty: 1 Easy Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 37) To get Medicare medical insurance, you must sign up for it and pay a monthly premium. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 38) Care in a skilled nursing facility beyond 100 days per benefit period is approved and covered by Medicare. Answer: FALSE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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39) Medicare covers routine checkups, dental care, most immunizations, cosmetic surgery, routine foot care, eyeglasses, and hearing aids. Answer: FALSE Difficulty: 3 Hard Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 40) Medicare covers the cost of care received outside the United States, Canada, and Mexico. Answer: FALSE Difficulty: 1 Easy Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 41) Medicare was never intended to pay all medical costs. Answer: TRUE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 42) Medicare supplement insurance is a government-sponsored program. Answer: FALSE Difficulty: 2 Medium Topic: Medicare and its supplements Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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43) Title XIX of the Social Security Act provides for a program of medical assistance to certain low-income individuals and families, known as Medicaid. Answer: TRUE Difficulty: 2 Medium Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 44) Medicaid is financed by both state and federal funds. Answer: TRUE Difficulty: 1 Easy Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 45) Very few members of the Medicaid population are also covered by Medicare. Answer: FALSE Difficulty: 2 Medium Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 46) Medicaid differs from Medicare because eligibility for Medicaid depends on having very low income and assets. Answer: TRUE Difficulty: 3 Hard Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic

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47) Because Medicaid coverage is very limited, people using it need to purchase supplemental insurance. Answer: FALSE Difficulty: 3 Hard Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 48) Disability income insurance provides regular cash income lost by employees as the result of an accident or illness. Answer: TRUE Difficulty: 2 Medium Topic: Disability insurance coverages and provisions Learning Objective: 11-06 Recognize the need for disability income insurance. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 49) Once a person is eligible, Medicaid provides more benefits than does Medicare. Answer: TRUE Difficulty: 3 Hard Topic: Medicaid Learning Objective: 11-05 Appraise the sources of government health care programs. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 50) Disability income insurance is probably the least neglected form of available insurance protection. Answer: FALSE Difficulty: 2 Medium Topic: Disability income and its sources Learning Objective: 11-06 Recognize the need for disability income insurance. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic

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51) Every year, 12% of the adult U.S. population suffers a long-term disability. Answer: FALSE Difficulty: 3 Hard Topic: Disability income and its sources Learning Objective: 11-06 Recognize the need for disability income insurance. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 52) 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. Answer: TRUE Difficulty: 1 Easy Topic: Disability income policy comparisons Learning Objective: 11-06 Recognize the need for disability income insurance. Bloom's: Understand Accessibility: Keyboard Navigation Gradable: automatic 53) Disability benefits begin on the first day you become disabled. Answer: FALSE Difficulty: 2 Medium Topic: Disability insurance coverages and provisions Learning Objective: 11-06 Recognize the need for disability income insurance. Bloom's: Remember Accessibility: Keyboard Navigation Gradable: automatic 54) Generally, disability income policies with shorte...