Basic of Health Insurance (NM)

What type of state regulation gives a person in poor health or with a pre-existing condition the opportunity to buy health insurance?

• required health benefits

• open enrollment periods

• guaranteed issue

• community rating law

Answer explanation

The PPACA effectively makes all group and individual medical expense insurance policies "guaranteed issue."

Which statement about health insurance is correct?

• A group plan is usually offered through employers or associations.

• The federal government controls the provisions of individual health plans.

• Most people buy health insurance in an individual policy.

• The federal government is not involved in group health insurance

Answer explanation

Employers or associations usually offer group plans.

Which is a penalty for failing to comply with the Patient Protection and Affordable Care Act?

• annual fine

• imprisonment

• equal fines for individuals and families

• forfeiture of government subsidies

Answer explanation

The goal of the ACA is to ensure that all Americans are covered under a medical insurance plan, and to enforce that goal a penalty may be imposed.

Through what source is a person with a family most likely to obtain medical expense coverage?

• Only through an employer's group plan

• Federal government

• Individual health insurance policy

• Individual or group health insurance policy

Answer explanation

Individual or group health insurance policies providing medical expense coverage can also cover one person and the family under a single plan.