PFIN: Chapter 9

Chapter 9 Concept Checks
Use these questions to confirm your understanding of each major section
of the chapter.
Why should health insurance planning be part of your personal
financial plan?
What factors contribute to today’s high costs of health care and
health insurance?
What are the two main sources of health insurance coverage in the
United States?
What is group health insurance? How does it differ from individual
health insurance?
Describe the features of traditional indemnity (fee-for-service) plans
and differentiate them from managed care plans.
Briefly explain how an HMO works. Compare and contrast group
HMOs, IPAs, and PPOs.
Discuss the basics of the Blue Cross/Blue Shield plans.
Who is eligible for Medicare and Medicaid benefits? What do those
benefits encompass?
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?