Podcast
Questions and Answers
What is the primary goal of the HMO Act?
What is the primary goal of the HMO Act?
- To provide reimbursement for hospital visits
- To limit the amount of annual check-ups provided
- To reduce the cost of health care through preventive care (correct)
- To ensure all patients can choose their providers freely
How do HMOs differ from traditional insurance companies?
How do HMOs differ from traditional insurance companies?
- HMOs reimburse patients for out-of-network services
- HMOs offer care and financing for their members (correct)
- HMOs do not emphasize preventive care
- HMOs provide only health services without any financing
What preventive service is typically offered for free by HMOs?
What preventive service is typically offered for free by HMOs?
- Emergency room visits
- In-patient hospital stays
- Annual check-ups (correct)
- Surgical procedures
Who is eligible to join an HMO?
Who is eligible to join an HMO?
What limitation do HMOs enforce regarding providers?
What limitation do HMOs enforce regarding providers?
Which of the following services would NOT be typically covered by an HMO?
Which of the following services would NOT be typically covered by an HMO?
What is the nature of deductibles in basic hospital expense coverage?
What is the nature of deductibles in basic hospital expense coverage?
How are miscellaneous hospital expenses typically expressed in insurance policies?
How are miscellaneous hospital expenses typically expressed in insurance policies?
What is the primary role of a gatekeeper in an HMO?
What is the primary role of a gatekeeper in an HMO?
What limitations are common in basic medical expense coverage?
What limitations are common in basic medical expense coverage?
How does the referral system in HMOs primarily benefit healthcare costs?
How does the referral system in HMOs primarily benefit healthcare costs?
Which of the following is NOT typically covered by basic medical expense coverage?
Which of the following is NOT typically covered by basic medical expense coverage?
Which component is included in basic surgical expense coverage?
Which component is included in basic surgical expense coverage?
What happens if emergency care is provided outside the HMO's service area?
What happens if emergency care is provided outside the HMO's service area?
What can be considered a maximum limit in the context of miscellaneous hospital expenses?
What can be considered a maximum limit in the context of miscellaneous hospital expenses?
In PPOs, how are physicians compensated for their services?
In PPOs, how are physicians compensated for their services?
What limitation exists in HMO coverage for mental health services?
What limitation exists in HMO coverage for mental health services?
What type of expense does basic medical expense coverage typically NOT include?
What type of expense does basic medical expense coverage typically NOT include?
How are emergency accident benefits categorized within basic medical expense coverage?
How are emergency accident benefits categorized within basic medical expense coverage?
What might cause a delay in a referral process in an HMO?
What might cause a delay in a referral process in an HMO?
What do basic surgical expense policies typically cover?
What do basic surgical expense policies typically cover?
How are surgical procedures classified in the relative value approach?
How are surgical procedures classified in the relative value approach?
What is the maximum point value usually assigned to in the relative value approach?
What is the maximum point value usually assigned to in the relative value approach?
What happens if a surgical procedure is not listed in a policy’s surgical schedule?
What happens if a surgical procedure is not listed in a policy’s surgical schedule?
What does the conversion factor in the relative value approach represent?
What does the conversion factor in the relative value approach represent?
What is one benefit of major medical policies?
What is one benefit of major medical policies?
What type of expenses do major medical policies typically encompass?
What type of expenses do major medical policies typically encompass?
If the conversion factor is 10, what amount does the policy pay for an appendectomy valued at 200 points?
If the conversion factor is 10, what amount does the policy pay for an appendectomy valued at 200 points?
What is one primary difference between PPOs and HMOs?
What is one primary difference between PPOs and HMOs?
What benefit do members receive when visiting approved physicians in a PPO?
What benefit do members receive when visiting approved physicians in a PPO?
Which statement about the payment structure in PPOs is correct?
Which statement about the payment structure in PPOs is correct?
How does a subscriber benefit from using an in-network provider in a PPO?
How does a subscriber benefit from using an in-network provider in a PPO?
What is one of the characteristics of a Point-of-Service (POS) plan?
What is one of the characteristics of a Point-of-Service (POS) plan?
Which statement about PPO contracts is true?
Which statement about PPO contracts is true?
What type of coverage does Major Medical Expense insurance primarily provide?
What type of coverage does Major Medical Expense insurance primarily provide?
Which of the following is NOT included in basic hospital expense policies?
Which of the following is NOT included in basic hospital expense policies?
What is a major difference between basic medical coverage and Major Medical policies?
What is a major difference between basic medical coverage and Major Medical policies?
How are the limits set on hospital room and board under basic hospital expense policies?
How are the limits set on hospital room and board under basic hospital expense policies?
Which statement is true about first-dollar coverage?
Which statement is true about first-dollar coverage?
What is typically the insured's responsibility if the hospital charges exceed the basic hospital expense benefits?
What is typically the insured's responsibility if the hospital charges exceed the basic hospital expense benefits?
Basic medical coverages usually have coverage limits compared to Major Medical policies. Which of the following is a result of this difference?
Basic medical coverages usually have coverage limits compared to Major Medical policies. Which of the following is a result of this difference?
Which coverage requires the insured to initially pay a specified amount before benefits are provided?
Which coverage requires the insured to initially pay a specified amount before benefits are provided?
What is the main advantage of a Point-Of-Service (POS) plan over HMO and PPO plans?
What is the main advantage of a Point-Of-Service (POS) plan over HMO and PPO plans?
In a POS plan, what happens if an individual chooses to use an out-of-network physician?
In a POS plan, what happens if an individual chooses to use an out-of-network physician?
How do POS plans primarily manage access to providers?
How do POS plans primarily manage access to providers?
Which statement is true about PPO plans in relation to provider selection?
Which statement is true about PPO plans in relation to provider selection?
What distinguishes a POS plan from an HMO?
What distinguishes a POS plan from an HMO?
What does the term 'gatekeeping' refer to in the context of a POS plan?
What does the term 'gatekeeping' refer to in the context of a POS plan?
If an insured in a PPO plan chooses an in-network provider, what is likely to happen to their out-of-pocket costs?
If an insured in a PPO plan chooses an in-network provider, what is likely to happen to their out-of-pocket costs?
In what scenario might a member of a POS plan have to pay a higher amount for a medical service?
In what scenario might a member of a POS plan have to pay a higher amount for a medical service?
What is a primary aspect of a PPO regarding provider selection?
What is a primary aspect of a PPO regarding provider selection?
What happens when an insured uses an out-of-network provider in a PPO?
What happens when an insured uses an out-of-network provider in a PPO?
Which services in a PPO might require pre-certification?
Which services in a PPO might require pre-certification?
What is a key feature of indemnity plans regarding non-member physicians?
What is a key feature of indemnity plans regarding non-member physicians?
In a PPO, what is the relationship between in-network providers and out-of-pocket costs?
In a PPO, what is the relationship between in-network providers and out-of-pocket costs?
What is required of insureds before visiting a specialist in a PPO?
What is required of insureds before visiting a specialist in a PPO?
What is a copayment in the context of HMO plans?
What is a copayment in the context of HMO plans?
How do HMOs primarily manage healthcare costs?
How do HMOs primarily manage healthcare costs?
What role does a primary care physician (PCP) have in an HMO?
What role does a primary care physician (PCP) have in an HMO?
What is true about the selection of physicians in an HMO?
What is true about the selection of physicians in an HMO?
What is typically not required under HMO plans?
What is typically not required under HMO plans?
Why is it beneficial for a primary care physician to keep their members healthy?
Why is it beneficial for a primary care physician to keep their members healthy?
What type of medical policy provides coverage after basic expenses are exhausted?
What type of medical policy provides coverage after basic expenses are exhausted?
Which element is typically not included in major medical policies?
Which element is typically not included in major medical policies?
Which type of medical policy is mandated by the Health Maintenance Act of 1973 for employers with more than 25 employees?
Which type of medical policy is mandated by the Health Maintenance Act of 1973 for employers with more than 25 employees?
What is a corridor deductible?
What is a corridor deductible?
Comprehensive Major Medical Policies are distinguished by which feature?
Comprehensive Major Medical Policies are distinguished by which feature?
What aspect do Major Medical Policies generally share?
What aspect do Major Medical Policies generally share?
What is a significant limitation of the Supplemental Major Medical policies?
What is a significant limitation of the Supplemental Major Medical policies?
Which of the following is likely not covered by Supplemental Major Medical Policies?
Which of the following is likely not covered by Supplemental Major Medical Policies?
Flashcards are hidden until you start studying
Study Notes
Medical Expense Insurance Overview
- Medical Expense Insurance encompasses basic hospital, surgical, and medical policies along with major medical policies.
- Designed to cover medical care costs due to accidents or sickness.
- Basic coverages may be purchased separately or as a package and usually don’t have deductibles.
Basic Hospital Expense Coverage
- Covers hospital room, board, and miscellaneous expenses (e.g., lab tests, medicines).
- No deductibles apply; however, may not cover full hospital charges.
- Room and board charges are capped at a specified dollar amount per day.
Miscellaneous Hospital Expenses
- Typically has a separate payment limit, expressed as a multiple of the room and board charge or as a flat amount.
- Specific limits may apply to certain expenses (e.g., drugs, operating room use).
Basic Medical Expense Coverage
- Provides coverage mainly for nonsurgical services rendered by physicians.
- Benefits are limited to hospital stays and certain outpatient visits, with no deductibles.
- Coverage can include emergency benefits, maternity care, and other medical services.
Basic Surgical Expense Coverage
- Covers costs related to surgeries, including fees for surgeons and anesthesiologists.
- No deductible applied, but coverage is limited to specified procedures and their maximum dollar amounts.
Major Medical Policies
- Provide extensive coverage for hospital expenses and catastrophic health costs.
- Common features include lifetime benefit limits, coinsurance, and significant deductibles.
- Types include Supplemental Major Medical and Comprehensive Major Medical policies.
Supplemental Major Medical Policies
- Supplement basic medical expense coverage, paying for expenses not covered by the basic policy.
- Activate once basic coverage limits are reached or time limitations expire.
Health Maintenance Organizations (HMOs)
- Established by the Health Maintenance Act of 1973 to promote preventive care and reduce healthcare costs.
- Offer free annual check-ups and immunizations to members for early disease detection.
- Operate on a capitated model, receiving a set monthly fee per member regardless of care usage.
HMO Characteristics
- Provide services rather than reimbursement; financing and care are integrated.
- Limited to specific geographic service areas.
- Members choose a primary care physician (PCP) who coordinates their care and referrals to specialists.
Copayments and Service Models
- Members pay a copayment for services (e.g., office visits).
- No deductibles under HMO plans, simplifying access to care.
Referral System in HMOs
- Referral from the PCP is required to see specialists, controlling costs.
- Non-compliance with the referral system may incur costs for the PCP.
Emergency Care and Hospital Services
- HMO members are guaranteed emergency care inside and outside service areas.
- Limited coverage exists for mental health and substance abuse treatment.
Preferred Provider Organizations (PPOs)
- A traditional medical service model where providers are paid based on service fees.
- Encourage members to use approved providers, offering higher discounts for in-network services.
Point-of-Service (POS) Plans
- A hybrid of HMO and PPO plans, allowing flexibility in provider choices at different cost levels.
- Members can receive care from in-network or out-of-network providers but at varying coverage levels.
Important Features of POS Plans
- No requirement for members to select a primary care physician, providing more freedom in choice.
- Utilizing out-of-network providers incurs higher costs for the member; in-network care results in lower out-of-pocket expenses.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
