CRPC EVALUATION EXAMS ALL QUESTIONS AND
ANSWERS SURE A+
✔✔Benefits of HSA for an individual (4) - ✔✔1. Interest and earnings grow tax free
2. Contributions are tax deductible
3. employer contributions do not result in taxable income
4. distributions are tax free for qualified med expenses
✔✔Benefits of HSA for employer (4) - ✔✔1. contributions are tax deductible for income
tax
2. employer contributions arent subject to payroll tax
3. employee salary reduction contributions may be made to the HSA feature that is part
of an employer-sponsered cafeteria plan
4. employer may be able to redesign existing health plans to take advantage of HSA.
example: reduce premiums by increasing out of pocket costs, and then contribute to
HSA plan with savings from premium
✔✔Role of Conservator - ✔✔- AKA financial guardian
- court appointed fiduciary responsible for managing the property and financial affairs of
legally or mentally incapacitated person
✔✔Living will - ✔✔- allows person to state in advance what life-sustaining medical
measures should be taken if incapable of consenting to treatment
✔✔Medicare eligibility requirements - ✔✔- must be 65, or disabled (according to Social
security admins definition) or victim of permanent kidney failure
✔✔Medicare Part A benefits - ✔✔- Inpatient hospital care
- post-hospital skilled nursing care and home health care
- hospice care for terminally ill
- pyschiatric hospital care
- blood
,** most benefits are limited
✔✔Medicare Part B - ✔✔- provides supplemental medical insurance to help medicare
enrollees pay for physician services and other services not covered under part A
- patient pays first $147 of physician charges and outpatient hospital care; PART B
covers 80% of subsequent charges.
- PART B also pays 100% of home health care costs
✔✔Who receives benefits under Parts A and B - ✔✔-PART A: most medicare enrollees
- PART B: only available to people who pay regular monthly premiums
✔✔What is the Medicare benefit period - ✔✔- very important in Part A coverage
- begins when patient enters the hospital and ends when patient has been out of 60
consecutive days
- each benefit period has a deductible
✔✔What is meant by the term Medigap - ✔✔- Costs not covered by Part A or Part B
*include: deductibles, cost of hospital stay that exceeds those covered by part A,
coinsurance, nonhospital prescription drugs, nursing home costs
✔✔How is medigap insurance categorized - ✔✔- 14 standardized packages labels A-N
✔✔What is Medicare Advantage plan - ✔✔- Medicare Part C
- plans offered by health maintenance organizations (HMOS), Preferred provider
organizations (PPOs), and provider sponsored organizations (PSOs)
✔✔Who is eligible for medicare advantage plan - ✔✔- Must have PART A and PART B;
CANNOT have end stage renal disease (ESRD), and must live in a county or
geographic region where is it available
✔✔Advantages and disadvantages of Medicare Advantage Plan - ✔✔Advantages
- benefits not covered by fee for service medicare; drugs and eye glasses
- predictable out of pocket costs
- there is no need to have a medigap policy
- greater emphasis on preventative care
DISADVANTAGES
- benefits may be limited, or denied, if network providers arent used
- when outside service area, benefits may be limited to medically necessary and
emergency care
- HMOs can terminate programs
✔✔What is medicaid - ✔✔- joint federal and state program that picks up the deductible
and copayments ordinarily paid by medicare enrollees
, ✔✔Who is eligible for medicaid benefits - ✔✔- certain individuals with low incomes
✔✔4 key policy features to consider in selecting an LTC policy - ✔✔1. elimination (or
waiting) period before which benefits are paid
2. maximum benefit period
3. the daily benefit
4. inflation protection
✔✔What is the role of medicare in long term care? - ✔✔- medicare does not provide
must coverage for lont term care.
- at most, it will cover some of the costs of staying in a skilled nursing facility or at-home
care that follows the release from a covered hospital stay
✔✔What are ADLs - ✔✔- activities of daily living
- dressing, bathing, toileting, continence, transferring (moving form bed or chair), and
eating
** IN QUALIFIED LTCI policy, the inability to perform any two of these ADLs triggers the
LTC benefit
✔✔Does Medicare PART A include the cost of a private room - ✔✔-NO
- Inpatient hospital care includes costs for semiprivate rooms, meals, operating and
recovery rooms, and prescription drugs. It does not cover the cost of private rooms.
✔✔Can HSA's be used for over the counter drugs that are not prescribed by a doctor? -
✔✔NO
- The provisions of obamacare prohibit both HSAs and FSAs from being used for over-
the-counter medicines not prescribed by a doctor.
✔✔Are premiums paid for a medigap policy, qualified medical expenses for hsa -
✔✔NO
Premium payments for a Medigap policy are not considered qualified medical expenses
for purposes of the health savings account rules.
✔✔What are 4 questions that clients generally ask in making the retirement decision -
✔✔1. can i afford it?
2. is this the right time
3. how will my spouse/family be affected?
4. do i want to retire?
✔✔What financial resources should be considered when a client asks can i afford to
retire? - ✔✔- SS old age benefits
- company pensions, iras, and tax deferred annuities
- other sources of income, such as a rental property
ANSWERS SURE A+
✔✔Benefits of HSA for an individual (4) - ✔✔1. Interest and earnings grow tax free
2. Contributions are tax deductible
3. employer contributions do not result in taxable income
4. distributions are tax free for qualified med expenses
✔✔Benefits of HSA for employer (4) - ✔✔1. contributions are tax deductible for income
tax
2. employer contributions arent subject to payroll tax
3. employee salary reduction contributions may be made to the HSA feature that is part
of an employer-sponsered cafeteria plan
4. employer may be able to redesign existing health plans to take advantage of HSA.
example: reduce premiums by increasing out of pocket costs, and then contribute to
HSA plan with savings from premium
✔✔Role of Conservator - ✔✔- AKA financial guardian
- court appointed fiduciary responsible for managing the property and financial affairs of
legally or mentally incapacitated person
✔✔Living will - ✔✔- allows person to state in advance what life-sustaining medical
measures should be taken if incapable of consenting to treatment
✔✔Medicare eligibility requirements - ✔✔- must be 65, or disabled (according to Social
security admins definition) or victim of permanent kidney failure
✔✔Medicare Part A benefits - ✔✔- Inpatient hospital care
- post-hospital skilled nursing care and home health care
- hospice care for terminally ill
- pyschiatric hospital care
- blood
,** most benefits are limited
✔✔Medicare Part B - ✔✔- provides supplemental medical insurance to help medicare
enrollees pay for physician services and other services not covered under part A
- patient pays first $147 of physician charges and outpatient hospital care; PART B
covers 80% of subsequent charges.
- PART B also pays 100% of home health care costs
✔✔Who receives benefits under Parts A and B - ✔✔-PART A: most medicare enrollees
- PART B: only available to people who pay regular monthly premiums
✔✔What is the Medicare benefit period - ✔✔- very important in Part A coverage
- begins when patient enters the hospital and ends when patient has been out of 60
consecutive days
- each benefit period has a deductible
✔✔What is meant by the term Medigap - ✔✔- Costs not covered by Part A or Part B
*include: deductibles, cost of hospital stay that exceeds those covered by part A,
coinsurance, nonhospital prescription drugs, nursing home costs
✔✔How is medigap insurance categorized - ✔✔- 14 standardized packages labels A-N
✔✔What is Medicare Advantage plan - ✔✔- Medicare Part C
- plans offered by health maintenance organizations (HMOS), Preferred provider
organizations (PPOs), and provider sponsored organizations (PSOs)
✔✔Who is eligible for medicare advantage plan - ✔✔- Must have PART A and PART B;
CANNOT have end stage renal disease (ESRD), and must live in a county or
geographic region where is it available
✔✔Advantages and disadvantages of Medicare Advantage Plan - ✔✔Advantages
- benefits not covered by fee for service medicare; drugs and eye glasses
- predictable out of pocket costs
- there is no need to have a medigap policy
- greater emphasis on preventative care
DISADVANTAGES
- benefits may be limited, or denied, if network providers arent used
- when outside service area, benefits may be limited to medically necessary and
emergency care
- HMOs can terminate programs
✔✔What is medicaid - ✔✔- joint federal and state program that picks up the deductible
and copayments ordinarily paid by medicare enrollees
, ✔✔Who is eligible for medicaid benefits - ✔✔- certain individuals with low incomes
✔✔4 key policy features to consider in selecting an LTC policy - ✔✔1. elimination (or
waiting) period before which benefits are paid
2. maximum benefit period
3. the daily benefit
4. inflation protection
✔✔What is the role of medicare in long term care? - ✔✔- medicare does not provide
must coverage for lont term care.
- at most, it will cover some of the costs of staying in a skilled nursing facility or at-home
care that follows the release from a covered hospital stay
✔✔What are ADLs - ✔✔- activities of daily living
- dressing, bathing, toileting, continence, transferring (moving form bed or chair), and
eating
** IN QUALIFIED LTCI policy, the inability to perform any two of these ADLs triggers the
LTC benefit
✔✔Does Medicare PART A include the cost of a private room - ✔✔-NO
- Inpatient hospital care includes costs for semiprivate rooms, meals, operating and
recovery rooms, and prescription drugs. It does not cover the cost of private rooms.
✔✔Can HSA's be used for over the counter drugs that are not prescribed by a doctor? -
✔✔NO
- The provisions of obamacare prohibit both HSAs and FSAs from being used for over-
the-counter medicines not prescribed by a doctor.
✔✔Are premiums paid for a medigap policy, qualified medical expenses for hsa -
✔✔NO
Premium payments for a Medigap policy are not considered qualified medical expenses
for purposes of the health savings account rules.
✔✔What are 4 questions that clients generally ask in making the retirement decision -
✔✔1. can i afford it?
2. is this the right time
3. how will my spouse/family be affected?
4. do i want to retire?
✔✔What financial resources should be considered when a client asks can i afford to
retire? - ✔✔- SS old age benefits
- company pensions, iras, and tax deferred annuities
- other sources of income, such as a rental property
