Questions and Answers
What is Health Insurance?
What does the Affordable Care Act (ACA) aim to do?
Make affordable health insurance more available
Subsidizing refers to the practice of employees paying for a portion of their own insurance premiums.
False
What is the Health Insurance Marketplace?
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A High-Deductible Health Plan (HDHP) has a high minimum deductible for ______ expenses.
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What is a Health Savings Account (HSA)?
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The maximum amount of lifetime benefits a person can receive from their insurance company is called the ______ limit.
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The more risk you accept on the front end, the ______ your premium is going to be.
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The deductible is the amount you pay up ______.
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______ expenses are the number one cause of bankruptcy in America.
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______ emergencies can happen to anyone at any time.
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You can ______ on your parents' health insurance plan until you're 26.
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A ______ deductible means lower premiums.
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An ______ can only be used for qualified medical expenses.
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Study Notes
Health Insurance Overview
- Health insurance provides coverage for medical expenses incurred due to illness or injury for individuals and families.
Affordable Care Act (ACA)
- Commonly known as Obamacare, the ACA was enacted in 2010 to increase the availability of affordable health insurance.
Subsidizing
- Employers often subsidize health insurance by covering a portion of their employees' insurance premiums.
Health Insurance Marketplace
- A platform that enables individuals, families, and small businesses to compare different health insurance plans and select the most suitable option.
High-Deductible Health Plan (HDHP)
- Characterized by high minimum deductibles, these plans require individuals to pay substantial out-of-pocket costs before insurance coverage kicks in.
Health Savings Account (HSA)
- A tax-exempt savings account specifically for health care costs, exclusively available to those enrolled in a high-deductible health plan.
Lifetime Limit
- This term refers to the maximum amount of benefits an individual can claim over the course of their lifetime from their insurance provider.
Risk and Premium Relationship
- Accepting more risk upfront generally results in a lower monthly insurance premium.
Deductible Payments
- The deductible is the initial amount that an individual must pay out-of-pocket before their health insurance begins to cover costs.
Health Expenses and Bankruptcy
- Health-related expenses are the leading cause of bankruptcy in the United States, highlighting the financial risks associated with healthcare.
Medical Emergencies
- Medical emergencies can arise unexpectedly, affecting anyone at any time, necessitating adequate insurance coverage.
Dependent Coverage
- Individuals can remain on their parents' health insurance plan until the age of 26, providing essential coverage during transitional life stages.
Premiums and Deductibles
- A high deductible typically correlates with lower insurance premiums, influencing the affordability of health plans.
Qualified Medical Expenses and HSAs
- Funds in a Health Savings Account (HSA) can only be used for qualified medical expenses, ensuring that the savings are utilized for healthcare needs.
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Description
This flashcard set covers key terms and definitions related to health insurance from Finance Chapter 9 Lesson 4. Learn about important concepts such as the Affordable Care Act and how employers subsidize health insurance contributions. Ideal for students looking to reinforce their understanding of health insurance terminology.
