Personal Finance 11th Edition By E. Thomas Garman – Test Bank

Chapter 11—Managing Health Expenses

TRUE/FALSE

1. A group health care plan is sold collectively to an entire group of persons rather than individuals.

ANS: T PTS: 1 DIF: easy REF: p. 321

2. Less than 50 percent of Americans are covered by some type of private or government health care plan.

ANS: F
about 85 percent are so covered.

PTS: 1 DIF: moderate REF: p. 321

3. The most obvious health related financial loss is the need for income replacement when one is unable to work.

ANS: F
the direct cost of health care is most obvious.

PTS: 1 DIF: easy REF: p. 321

4. Group health plans are especially important to anyone who has existing health problems.

ANS: T PTS: 1 DIF: moderate REF: p. 321

5. Medicare is the only federal health care program currently in place.

ANS: F
the Medicaid and S-CHIP programs also are available.

PTS: 1 DIF: moderate REF: p. 321-322

6. Choosing your Medicare plan through a private company that combines Medicare Parts A and B into one plan called a Medicare Advantage plan can reduce your out-of-pocket health care costs.

ANS: T PTS: 1 DIF: moderate REF: p. 322

7. Medicare (Part B) requires a monthly premium for coverage.

ANS: T PTS: 1 DIF: moderate REF: p. 321

8. Medicare (Part A) covers prescription drugs.

ANS: F
Medicare Part D covers prescription drugs

PTS: 1 DIF: moderate REF: p. 321

9. Medicaid is a health care program for low income individuals.

ANS: T PTS: 1 DIF: easy REF: p. 322

10. The hospitalization portion of Medicare (Part A) requires a monthly premium from the insured.

ANS: F
Medicare Part A is free and Medicare Part B requires a monthly premium

PTS: 1 DIF: moderate REF: p. 321

11. A family’s income must fall below the poverty line in order for the S-CHIP program to be available for its children.

ANS: F
middle income families without health insurance can qualify for the S-CHIP program.

PTS: 1 DIF: difficult REF: p. 322