Stocks vs. Bonds Answers

Which of the following acronyms does not represent a managed care plan?a.HMOb.PPOc.POSd.SOR

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)? a. An HMO is paid a monthly premium for ongoing services while a PPO collects no money until after services are rendered. b. An HMO allows the insured individual to choose from a list of providers while a PPO assigns the insured individual the provider nearest his or her residence. c. An HMO requires the insured individual to go to a provider within their organization while a PPO allows the insured individual the option to receive care from a non-preferred provider at a higher cost. d. An HMO is usually paid for by the insured individual’s employer while a PPO usually requires the insured individual to pay a co-pay or deductible for services. Please select the best answer from the choices provided

Bob’s employer covers 23% of his family’s annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob’s paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob’s paychecks, what is his family’s annual health insurance premium?a.$805.65b.$4,817.80c.$6,256.88d.$20,946.96

Sammy is a full-time students who does not work. He is too old to stay on his parents health insurance and is looking for his own health care program. The two options he is considering are outlined in the tables below. OPTION 1: Fee-for-service OPTION 2: HMO $225 monthly premium $630 monthly premium$7,500 deductible No annual deductible Co-pays: Co-pays:Name-brand Drugs: $30 Name-brand Drugs:$25 Generic Drugs:$12 Generic Drugs$10 Visits: Visits: Primary Care Physician$30 Primary Care Physician$20 Specialist: $75 Specialist: $62 Urgent Care:$100 Urgent Care:$50 Emergency Room:$250 Emergency Room:$175 The first option is a fee-for-service plan with a $7,500 deductible. Sammy must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs.The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option.Sammy is a young man in very good condition. He visits his primary care physician every other month to get physicals for school sports. He fills a prescription for his name-brand asthma inhaler every month. Sammy is an avid sportsman who loves skiing and snowboarding, two potentially dangerous activities.Considering the real possibility of a serious skiing or snowboarding accident that could put Sammy in the hospital for an extended period of time, which of the following statements is true for his situation? (Assume an extended hospital stay costs at least $12,000.)a.In the event of a serious accident, the $7,500 deductible makes Option 1 the cheaper of the two. b.The lower monthly premium associated with Option 1 is enough to offset the cost of a serious accident.c.Even with the higher premium, Option 2 covers more of Sammy’s health care costs in the event of a serious accident.d.Under Option 2, Sammy will have to pay for more of the health care costs resulting from a serious accident than he would under Option 1.

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald’s $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?Soopergood InsuranceOptionMonthly PremiumEmployer ContributionHealth Insurance$345 65%Dental$38 50%Vision$23 75%a.$141.75b.$145.50c.$149.50d.$260.50

Which of the following is something that should not be a consideration when choosing a health care plan?a.annual premiums to be paid by the insured individual and familyb.deductible or co-pay to be paid by the insured individual and familyc.total coverage received by insured individual and familyd.the coverage the insured individual and family already receive in auto insurance

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan? a. PPO insurance plans offer a wider choice of primary care doctors and specialists. b. HMO insurance plans have higher deductibles and copays. c. PPO insurance plans have higher deductibles and copays. d. HMO insurance plans require a referral for a patient to visit a specialist. Please select the best answer from the choices provided

Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays). Liam is a fairly healthy young man. He visits his primary care physician three times a year on scheduled visits. He sees a chiropractic specialist every week to help with lower back pain. He has no current prescriptions that need refilling regularly.Assuming Liam maintains his regular visits with his primary care physician and his chiropractor, and avoids any trips to the emergency room or urgent care, how much will Liam pay in health care related fees this year?Leroux Health InsurancePlan A Cost: Monthly Premium: $248.00 Annual Deductible: $5,500.00 Co-pays: Brand-name Prescriptions $35.00 Generic Prescriptions $15.00 Visits: Primary Care Physician: $40.00 Specialist: $60.00 Urgent Care: $125.00 Emergency Room: $325.00 a.$716.00b.$3,816.00c.$5,500.00d.$6,216.00

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim’s employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie’s employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.Insurance Jim's Employer BeneficiaryMonthly PremiumEmployer ContributionJim$378 42%Additional (each)$345 23% Stephanie's EmployerBeneficiaryMonthly PremiumEmployer ContributionStephanie$298 35% (+10% for each additional beneficiary)Additional (each)$349 30%Which would be the most economical way for the couple to purchase health insurance?a.They should both add each other to their plans.b.Stephanie should add Jim to her health care plan.c.Jim should add Stephanie to his health care plan.d.They should each purchase a plan from their own employer.

In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.a.the insurance company will not pay more than $6,500 for any hospital visit.b.the insurance company will pay at most $6,500 in health care in a calendar year.c.the insured individual must pay $6,500 in health care before the insurance company will begin to pay for his health care needs.d.the insured individual must pay $6,500 in equal monthly installments in order for the insurance company to pay for his health care needs.