HPA 210 EXAM Questions AND Correct Answers
15% of Medicare enrollees are eligible for Medicaid (known as dual
eligible beneficiaries) - ✔✔
15% of Medicare enrollees are eligible for Medicaid (known as dual-
eligible beneficiaries) - ✔✔
17% of Medicare enrollees have Medigap plans designed to help
offset deductibles, coinsurance and copays (in exchange for a monthly
premium) - ✔✔
17% of Medicare enrollees have Medigap plans designed to help
offset deductibles, coinsurance, and copays (in exchange for a
monthly premium) - ✔✔
1954
Internal Revenue Service (IRS) clarifies earlier ruling by adding a
provision to tax code formally excluding ESHI from taxable employee
income. - ✔✔
1960, 96% of prescription drugs were purchased via out-of-pocket
compared to 2014 when 16% of prescription drugs were purchased via
out-of-pocket. - ✔✔
,1965 brought about the creation of Medicare and Medicaid. - ✔✔
1978
IRS recognizes "cafeteria plans," allowing employees to choose the
types and amounts of fringe benefits they will receive from their
employer and only be taxed on the value of any taxable benefits
selected.
Section 125 of the IRS Code permits employers to sponsor
arrangements that make it possible for employees to pay for their
share of insurance premiums with pre-tax wages. - ✔✔
1987 to 2003
Favorable tax treatment of ESHI is extended to self-employed
individuals. - ✔✔
1996
The Health Insurance Portability and Accountability Act of 1996
(HIPAA) established Archer medical savings accounts (MSAs) for self-
employed persons and employees of small firms.The individual
account holder must be enrolled in a high-deductible health plan
(HDHP). Employees and employers contribute to MSAs on a pretax
basis.
Withdrawals from MSAs are tax-free if used to pay for qualified
medical expenses. MSAs must be coupled with HDHPs and
withdrawals from MSAs help to pay for a beneficiary's annual
deductible. If MSA funds remain at the end of the year, they can
,either be rolled over for the following year or withdrawn as taxable
income. - ✔✔
2002
IRS formally recognizes health reimbursement accounts (HRAs), which
are established and funded solely by employers. HRAs are used to
reimburse employees for out-of-pocket medical expenses and
individual health insurance premiums. Employers may restrict the list
of reimbursable expenses for their HRA plan. - ✔✔
2003
The Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 authorizes health savings accounts (HSAs). HSAs are only
available to individuals with high deductible health plans (HDHPs).
Withdrawals for qualifying medical expenses are not taxed. HSAs
allow pretax contributions from both employers and employees. - ✔✔
25% of Medicare enrollees receive health insurance coverage through
their employer or former employer - ✔✔
25% of Medicare enrollees receive health insurance coverage through
their employer or former employer via employer-sponsored retiree
coverage - ✔✔
, 32.3 million non-elderly persons in the US lacked health insurance -
✔✔49% of this population (15.9 million) is eligible for coverage
through Medicaid or subsidized marketplace coverage
33% of Medicare beneficiaries are enrolled in Medicare Advantage
Plans - ✔✔
33% of Medicare beneficiaries are enrolled in Medicare Advantage
Plans (Medicare Part C) - ✔✔
55% of the non-elderly had insurance through an employer (group
coverage)
Half of those insured received coverage as a benefit of their
employment, while the other half obtained coverage as a dependent
(e.g., spouse, child). - ✔✔
A fifth type of plan available via the Marketplace (beyond the "metal"
plans) is catastrophic plans. These plans are only available to adults
up to age 30 or certain older people who qualify for a hardship
exemption. Compared to "metal" plans catastrophic plans have very
low monthly premiums and very high deductibles, which often equal
the individual/family out-of-pocket maximums ($6,850 for
individuals/$13,700 for families). However, if an enrollee qualifies for
a premium tax credit, he/she may be better off purchasing a Bronze
15% of Medicare enrollees are eligible for Medicaid (known as dual
eligible beneficiaries) - ✔✔
15% of Medicare enrollees are eligible for Medicaid (known as dual-
eligible beneficiaries) - ✔✔
17% of Medicare enrollees have Medigap plans designed to help
offset deductibles, coinsurance and copays (in exchange for a monthly
premium) - ✔✔
17% of Medicare enrollees have Medigap plans designed to help
offset deductibles, coinsurance, and copays (in exchange for a
monthly premium) - ✔✔
1954
Internal Revenue Service (IRS) clarifies earlier ruling by adding a
provision to tax code formally excluding ESHI from taxable employee
income. - ✔✔
1960, 96% of prescription drugs were purchased via out-of-pocket
compared to 2014 when 16% of prescription drugs were purchased via
out-of-pocket. - ✔✔
,1965 brought about the creation of Medicare and Medicaid. - ✔✔
1978
IRS recognizes "cafeteria plans," allowing employees to choose the
types and amounts of fringe benefits they will receive from their
employer and only be taxed on the value of any taxable benefits
selected.
Section 125 of the IRS Code permits employers to sponsor
arrangements that make it possible for employees to pay for their
share of insurance premiums with pre-tax wages. - ✔✔
1987 to 2003
Favorable tax treatment of ESHI is extended to self-employed
individuals. - ✔✔
1996
The Health Insurance Portability and Accountability Act of 1996
(HIPAA) established Archer medical savings accounts (MSAs) for self-
employed persons and employees of small firms.The individual
account holder must be enrolled in a high-deductible health plan
(HDHP). Employees and employers contribute to MSAs on a pretax
basis.
Withdrawals from MSAs are tax-free if used to pay for qualified
medical expenses. MSAs must be coupled with HDHPs and
withdrawals from MSAs help to pay for a beneficiary's annual
deductible. If MSA funds remain at the end of the year, they can
,either be rolled over for the following year or withdrawn as taxable
income. - ✔✔
2002
IRS formally recognizes health reimbursement accounts (HRAs), which
are established and funded solely by employers. HRAs are used to
reimburse employees for out-of-pocket medical expenses and
individual health insurance premiums. Employers may restrict the list
of reimbursable expenses for their HRA plan. - ✔✔
2003
The Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 authorizes health savings accounts (HSAs). HSAs are only
available to individuals with high deductible health plans (HDHPs).
Withdrawals for qualifying medical expenses are not taxed. HSAs
allow pretax contributions from both employers and employees. - ✔✔
25% of Medicare enrollees receive health insurance coverage through
their employer or former employer - ✔✔
25% of Medicare enrollees receive health insurance coverage through
their employer or former employer via employer-sponsored retiree
coverage - ✔✔
, 32.3 million non-elderly persons in the US lacked health insurance -
✔✔49% of this population (15.9 million) is eligible for coverage
through Medicaid or subsidized marketplace coverage
33% of Medicare beneficiaries are enrolled in Medicare Advantage
Plans - ✔✔
33% of Medicare beneficiaries are enrolled in Medicare Advantage
Plans (Medicare Part C) - ✔✔
55% of the non-elderly had insurance through an employer (group
coverage)
Half of those insured received coverage as a benefit of their
employment, while the other half obtained coverage as a dependent
(e.g., spouse, child). - ✔✔
A fifth type of plan available via the Marketplace (beyond the "metal"
plans) is catastrophic plans. These plans are only available to adults
up to age 30 or certain older people who qualify for a hardship
exemption. Compared to "metal" plans catastrophic plans have very
low monthly premiums and very high deductibles, which often equal
the individual/family out-of-pocket maximums ($6,850 for
individuals/$13,700 for families). However, if an enrollee qualifies for
a premium tax credit, he/she may be better off purchasing a Bronze
