Health Insurance Explained: The Essential Quiz

Question 1

What is the 'triple tax advantage' that makes a Health Savings Account (HSA) so valuable?

Accepted Answer

Contributions are tax-free, earnings grow tax-free, and withdrawals for medical expenses are tax-free

Answer

Contributions reduce your taxable income, and you pay no state or federal tax on the account ever

Answer

HSA funds earn triple the interest of a normal savings account and are exempt from capital gains tax

Answer

You pay no taxes on premiums, co-pays, and deductibles when enrolled in an HSA-eligible plan

Question 2

What is the most important structural difference between an HMO and a PPO health insurance plan?

Accepted Answer

HMOs require you to choose a primary care physician and get referrals to see specialists, while PPOs allow you to see any in-network doctor without a referral

Answer

HMOs have higher premiums than PPOs because they offer more flexibility

Answer

PPOs are only available through employers while HMOs are available on the individual market

Answer

HMOs cover prescription drugs while PPOs do not

Question 3

For most people who get health insurance through an employer, when is open enrollment typically held?

Accepted Answer

Once per year, typically in the fall, during a set window of several weeks when you can change or elect coverage for the coming year

Answer

Every month from the 1st through the 15th

Answer

Any time within 60 days of receiving a major medical bill

Answer

On your birthday month each year

Question 4

COBRA continuation coverage allows you to keep your employer's health insurance after leaving a job. What is the biggest downside?

Accepted Answer

You must pay the full premium cost — both your share and the employer's share — plus a 2% administrative fee, making it significantly more expensive than what you paid as an employee

Answer

COBRA is only available if you were laid off and not if you resigned voluntarily

Answer

COBRA coverage expires after 30 days regardless of the reason you left your job

Answer

COBRA only covers emergency care and hospitalization, not routine doctor visits

Question 5

Under the Affordable Care Act, premium subsidies (premium tax credits) for marketplace health plans are primarily based on what factor?

Accepted Answer

Your household income as a percentage of the federal poverty level

Answer

The state you live in and whether that state expanded Medicaid

Answer

Your age and the number of prescriptions you take annually

Answer

Your employment status and whether your employer offers any coverage at all

Health Insurance Explained: The Essential Quiz

What You Will Learn