Quiz | October 2011

What Young Adults Need to Know About Health Insurance

istockphoto

By Lisa Gerstner, Staff Writer, Kiplinger's Personal Finance
October 2011

When you’re just starting out, learning the ropes of health insurance is no small task. But as the cost of insurance rises and the laws governing health care shift, understanding what’s available is crucial to getting the most appropriate and affordable coverage for you. Put your health-insurance know-how to the test.

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 1 of 10

You’re 22, you’ve just graduated from college, and you’re hunting for your first job. Which option is available to you when it comes to health insurance?

A. Remaining on your parents’ policy
B. Finding individual coverage in the private market
C. Skipping out on coverage
D. All of the above

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 1 of 10

You’re 22, you’ve just graduated from college, and you’re hunting for your first job. Which option is available to you when it comes to health insurance?

You're right! D. All of the above is correct.

Sorry, wrong! is incorrect.

The right answer is D. All of the above.

Many recent college graduates who are younger than 26 can stay on their parents’ policies, thanks to the Affordable Care Act. Or you could find an individual policy in the private market; some insurers offer short-term coverage, such as for 3 or 6 months (search for policies at eHealthInsurance.com). You currently aren’t required to have health coverage (but if the health care reform law stands, you will have to be insured starting in 2014 or potentially pay a fee). But going without it is risky, even for a twentysomething with a squeaky clean health record. Accidents can happen, and bills can pile up.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 2 of 10

Okay, so you’ve landed a job. True or false: Your new employer’s health plan can’t deny you coverage because of your asthma condition.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 2 of 10

Okay, so you’ve landed a job. True or false: Your new employer’s health plan can’t deny you coverage because of your asthma condition.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

According to federal law, an employer’s group plan can’t deny or limit health coverage to someone based on a pre-existing condition. However, if you received medical advice, care, diagnosis or treatment for that condition within the previous six months of your enrollment date, your employer may impose a waiting period of up to 12 months until you can receive benefits for the condition (depending on whether you were insured before joining your employer’s plan and how long you were covered; these rules vary depending on the size of your employer and your state). But you’ll still be eligible for overall health coverage.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 3 of 10

True or False: If you’re on your company’s health-insurance plan, your employer will likely cover the full cost of the premiums.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 3 of 10

True or False: If you’re on your company’s health-insurance plan, your employer will likely cover the full cost of the premiums.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Only if you’re lucky will your employer cover the full premium that an insurance company charges. Most employers don’t, and you’ll have to pay some portion of the premium cost, says Ankeny Minoux, president of the Foundation for Health Coverage Education. And health insurance costs are on the rise. A Kaiser Family Foundation survey shows that in 2011, premiums rose by 8% from 2010 for single coverage, to $5,429 (including both employee and employer contributions), and by 9% for family plans, to $15,073. Many employers are passing some portion of those increases to workers.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 4 of 10

You’re 24, and your parents are enrolled in an employer-based health-insurance policy that offers dependent coverage. Which of the following could prevent you from being on their policy?

A. You’re married
B. You’re not included as a dependent on your parents’ tax return
C. Your employer has offered you health-insurance coverage
D. You’re in college

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 4 of 10

You’re 24, and your parents are enrolled in an employer-based health-insurance policy that offers dependent coverage. Which of the following could prevent you from being on their policy?

You're right! C. Your employer has offered you health-insurance coverage is correct.

Sorry, wrong! is incorrect.

The right answer is C. Your employer has offered you health-insurance coverage.

Many insurance plans must now offer coverage to adult children under age 26 on their parents’ policies, even if the children are married or don’t depend financially on their parents. But employer-based insurance plans that were established before March 23, 2010, are exempt from offering coverage to young adults who have the option of getting health insurance through their employers. (If your parents bought a plan that offers dependent coverage in the private market, the policy has to cover you up to age 26 regardless of whether you’ve been offered health insurance through an employer.) In 2014, that provision is set to disappear, and even young adults who can get coverage through their jobs will be able to use their parents’ policies.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 5 of 10

You’ve chosen an employer-based health-insurance plan with a $500 deductible. Which of the following, if available, should you use to help cover your out-of-pocket medical expenses?

A. A flexible spending account
B. A health savings account
C. Your lunch money
D. All of the above

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 5 of 10

You’ve chosen an employer-based health-insurance plan with a $500 deductible. Which of the following, if available, should you use to help cover your out-of-pocket medical expenses?

You're right! A. A flexible spending account is correct.

Sorry, wrong! is incorrect.

The right answer is A. A flexible spending account.

If your employer offers a flexible spending account, you can have pretax money withdrawn from your paychecks and placed into the account. The money is available to cover many out-of-pocket medical expenses, including those that you have to pay to meet your deductible. In this case, a health savings account (which also allows you to set aside pretax money for health-related expenses) is not an option because an individual must have at least a $1,200 deductible ($2,400 for a family plan) to qualify for an HSA. You could forgo lunch to pay bills, but we don’t recommend it.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 6 of 10

True or False: If you pay your medical bills late, you could damage your credit score.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 6 of 10

True or False: If you pay your medical bills late, you could damage your credit score.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

As with many other types of late payments, unpaid medical bills could be turned over to a collection agency. That would be a big blow to your credit score and stunt your financial well-being for a long time. Take immediate action if you’re having trouble paying large bills: Providers may be willing to negotiate, taking a smaller amount than billed if you pay upfront.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 7 of 10

You’re 28, you’ve been unemployed and uninsured for several months, and you have diabetes. Which of the following is likely the best option for you?

A. Getting on your parents’ policy
B. Finding coverage through a high-risk insurance pool
C. Buying an individual policy
D. All of the above

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 7 of 10

You’re 28, you’ve been unemployed and uninsured for several months, and you have diabetes. Which of the following is likely the best option for you?

You're right! B. Finding coverage through a high-risk insurance pool is correct.

Sorry, wrong! is incorrect.

The right answer is B. Finding coverage through a high-risk insurance pool.

If your state’s laws are generous, you may be able to get coverage through your parents’ policy (see www.ncsl.org for information on state age limits). But most states limit parental coverage to those who are younger than age 26. If you are able to find an individual policy that will cover you, you’ll probably pay hefty premiums as a result of your pre-existing condition. If you’ve been uninsured for at least six months and haven’t been able to get coverage through a private insurer, check out the federal government’s Pre-Existing Condition Insurance Plan. It charges premiums similar to those a healthy person in your state would pay. Many states have separate high-risk insurance pools for people with pre-existing conditions, and they don’t limit coverage to those who have been uninsured for six months or more. But their rates are often 150% to 200% of the standard market rate for health coverage. Go to www.coverageforall.org for state-by-state information on your options.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 8 of 10

True or False: If you contribute to a health savings account, you must use the money by the end of the year.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 8 of 10

True or False: If you contribute to a health savings account, you must use the money by the end of the year.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Unlike funds in a flexible spending account, which you have to use by year-end (or, depending on your employer, by March 15 of the following year), money in an HSA can be rolled over from year to year. Contributions to an HSA are tax-deductible, and you can use funds in the account tax-free for co-payments, deductibles, prescription drugs and other out-of-pocket medical costs.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 9 of 10

When does an employer permit you to make changes to your health coverage?

A. During its annual open-enrollment season
B. After you get married
C. After the birth of your child
D. All of the above

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 9 of 10

When does an employer permit you to make changes to your health coverage?

You're right! D. All of the above is correct.

Sorry, wrong! is incorrect.

The right answer is D. All of the above.

Typically, you can choose or change your employer-sponsored benefits only during your company’s annual open-enrollment period, which is usually in the fall. But according to federal rules, an employer must allow you to revisit your coverage after certain life-changing events. For example, you have 30 days after a marriage or birth to notify a plan provider of the event and to request a special open-enrollment period. During that time, your spouse could add you or a child to her plan, or you could add them to your plan. Compare policies to see which will provide the best coverage at the lowest cost.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 10 of 10

True or False: Your parents’ employer-based insurance policy can reject you for coverage if you have a pre-existing condition, even if it offers dependent coverage and you meet the requirements for joining a parental policy.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

istockphoto

Question 10 of 10

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Just as an employer’s group plan can’t deny or limit coverage to an employee because of a pre-existing condition, it can’t reject an employee’s dependents if it provides dependent coverage. If you are uninsured for 63 days or longer before you are added to your parents’ policy, the employer can impose a waiting period for coverage of your condition. If you did have coverage within that 63-day window, the waiting period may apply, but it will be shortened or eliminated based on how long you had the previous coverage.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

What Young Adults Need to Know About Health Insurance

Results: 0 out of 10 Right

Quiz | October 2011

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

Quiz

What Young Adults Need to Know About Health Insurance

See Also

Popular Quizzes

Advertisement

Advertisement

Featured Videos From Kiplinger