Chapter 9 Concept Checks
Use these questions to confirm your understanding of each major section
of the chapter.
9-1
Why should health insurance planning be part of your personal
financial plan?
9-2
What factors contribute to today’s high costs of health care and
health insurance?
9-3
What are the two main sources of health insurance coverage in the
United States?
9-4
What is group health insurance? How does it differ from individual
health insurance?
9-5
Describe the features of traditional indemnity (fee-for-service) plans
and differentiate them from managed care plans.
9-6
Briefly explain how an HMO works. Compare and contrast group
HMOs, IPAs, and PPOs.
9-7
Discuss the basics of the Blue Cross/Blue Shield plans.
9-8
Who is eligible for Medicare and Medicaid benefits? What do those
benefits encompass?
9-9
What is the objective of workers’ compensation insurance? What
types of benefits does it typically provide?
9-10 What four methods can be used to control the risks associated with
health care expenses?
9-11 What factors should be considered in evaluating available
employer-sponsored health insurance plans?
9-12 What sources of health insurance are available to supplement
employer-sponsored health insurance plans?
9-13 What type of plan do you think will best suit your needs? Why?
9-14 What are the key differences between hospitalization insurance
and surgical expense insurance?
9-15 What are the features of a major medical plan? How does
comprehensive major medical insurance differ from it?
9-16 Describe the following policy provisions commonly found in medical
expense plans: (a) deductibles, (b) coinsurance, (c) coordination of
benefits, and (d) preexisting conditions.
9-17 What are the key provisions of the Consolidated Omnibus Budget
Reconciliation Act (COBRA)?
9-18 What are the key cost containment provisions commonly found in
medical expense plans?
9-19 Why should a consumer consider purchasing a long-term care
insurance policy?
9-20 What are the differences among long-term care policies regarding
(a) type of care, (b) eligibility requirements, and (c) services covered?
9-21 What questions should one ask before buying long-term care
insurance? What guidelines can be used to choose the right policy?
9-22 What is disability income insurance? What is the waiting-period
provision found in such policies?
9-23 Describe both the liberal and strict definitions used to establish
whether an insured is disabled.
9-24 Why is it important to consider benefit duration when shopping for
disability income coverage?