Chapter 14 Personal Finance Quiz

__________________ is a form of protection that eases the financial burden people may experience due to the costs of treating an illness or injury.

Basic health insurance covers hospital expenses, surgical expenses, and physician expenses. What kind of insurance covers a serious injury or illness that costs more than basic health insurance is likely to pay?

We talked a little bit about Canada's health care system. What's their model?

• Canadian citizens can choose to purchase health insurance from a number of private companies.

• Canadian citizens must buy health insurance from the government.

• Canadian citizens receive free health insurance from the government.

• Canadians are immortal, and it's weird that no one's talking about it.

Answer explanation

Canadian citizens receive free health insurance from the government. Advantages include much lower health care costs, and having NO uninsured citizens. Disadvantages include possible delays in availability of certain specialists, and little flexibility.

This is a flat fee that you pay every time you receive a covered service:

• Co-payment

• Stop-loss

• Coinsurance

• Indemnity

Answer explanation

No one ever says co-payment, just "co-pay." It only gets called a co-payment when it's in trouble with Mom.

Why is it important to include health insurance in your financial planning?

• Because health care in the United States can be prohibitively expensive, and even if you're young and healthy, accidents can happen to anyone. Health insurance is financial protection - think of it like the case on your phone. Sure, you might be fine without it for a day, a week, a month - but long-term, it's probably going to bite you.

• It's the first one. This isn't so much a multiple-choice question as a reminder that you need health insurance.

• If your parents have health insurance through their work, they'll usually cover you guys through age 26.

• Why 26? Beats me.

What is Blue Cross / Blue Shield?

• A private insurance company that provides benefits for hospital care and surgical and medical services.

• A state-run insurance company that provides benefits for hospital care and surgical and medical services.

• A federal (national) insurance company that provides benefits for hospital care and surgical and medical services.

• What would happen if Jesus and Captain America became Smurfs.

What is an HMO?

• Health Management Occupation

• Health Maintenance Organization

• Preferred title of Howie Mandel, Optometrist

• Hospital Material Organizer

Answer explanation

Instead of insurance, which covers your needs when they arise, an HMO provides you a certain "set" of medical services for a yearly fee. Most people prefer regular health insurance.

_________________ is a federally funded health insurance program available mainly to people over 65 and with certain disabilities.

Answer explanation

I told you guys in class that Medicare was the United States' second-biggest expense; it's actually third, behind military spending and Social Security.

______________ is a government health program that provides health insurance to certain low-income individuals and families.

_________________ is a benefit that you may be eligible to receive if you are disabled as a result of an accident or illness that occurs while you're on the job.

• Social Security

• Private Income Insurance

• Structured settlement

• Worker's Compensation

Answer explanation

Again, you'll always hear this abbreviated to "worker's comp."