Personal Finance 12th Edition By Garman – Test Bank

1. The most obvious health related financial loss is the need for income replacement when one is unable to work.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: 11.1

2. Less than 50 percent of Americans are covered by some type of private or government health care plan.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.1

3. The official name of the 2010 health insurance reform law is Obamacare.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.1

4. It is becoming increasingly common for health care plans to offer lower rates to persons with a healthy lifestyle.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: 11.1

5. The United States spends a higher percentage of its gross domestic product than any other country.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.1

6. Young adults may stay on a parent’s health care plans until age 22 or graduating from college whichever comes first.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how the Affordable Care Act works, and how consumers shop and pay for health insurance coverage
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.1
they may stay on a parent’s plan until age 26 regardless of whether they are in college or not

7. A group health care plan is sold collectively to an entire group of persons rather than individuals.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Distinguish among the types of health care plans
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.2

8. Medicare is the only federal health care program currently in place.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Distinguish among the types of health care plans
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.2
the Medicaid program is are available.

9. Choosing your Medicare plan through a private company that combines Medicare Parts A and B into one plan called a Medicare Advantage plan can broaden health care benefits.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Distinguish among the types of health care plans
KEYWORDS: Bloom’s: Understanding
OTHER: Analytic
NOTES: 11.2

10. Medicare (Part B) requires a monthly premium for coverage.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Distinguish among the types of health care plans
OTHER: Analytic
NOTES: 11.2

11. Medicare (Part A) covers prescription drugs.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Distinguish among the types of health care plans
OTHER: Analytic
NOTES: 11.2
Medicare Part D covers prescription drugs

12. Medicaid is a health care program for low income individuals.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Distinguish among the types of health care plans
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.2

13. The hospitalization portion of Medicare (Part A) requires a monthly premium from the insured.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Distinguish among the types of health care plans
KEYWORDS: Bloom’s: Remembering
OTHER: Analytic
NOTES: 11.2
Medicare Part A is free and Medicare Part B requires a monthly premium