Exam (elaborations)
CRPC Module #5.
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Exam of 9 pages for the course ITM C954 Combo. at ITM C954 Combo. (CRPC Module #5.)
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CRPC Module #5(5-1 ACA's and HSA's) List the 5 levels of ACA health care plans available on public
exchanges, and the average percentage costs each covers: - ANS-1. Catostrophic
Plans - for under 30 years of age or low income individuals with hardship provisions.
High deductible with basic services at no cost.
2. Bronze Plans - plan pays 60% on average and insured pays 40%
3. Silver Plans - plan pays 70% on average and insured pays 30%
4. Gold Plans - plan pays 80% on average and insured pays 20%
5. Platinum Plans - plan pays 90% on average and insured pays 10%
(5-1) _____ is the amount the insured must pay before the plan pays anything -
ANS-Deductible
(5-1) _____ is the percentage or expenses paid by the insurance company after the
deductible is met. - ANS-Coinsurance
(5-1) _____ _____ Account is a tax exempt trust or custodial account funded by an
individual to pay for qualified medical expenses for either the owner of the account, a
spouse, or dependents. - ANS-Health Savings
(5-1) Identify four important advantages of a Health Savings Account for an individual: -
ANS-1. Owner may claim an income tax deduction for cash contributions to an HSA,
even if not itemizing deductions (avoids the "must exceed 7.5% or AGI rule, when
itemizing)
2. Interest and earnings on assets accumulate tax-free within an HSA
3. Employer contributions to an employee's HSA do not result in taxable income for the
employee.
4. Distributions are tax free as long as they are used for qualified medical expenses
(5-1) Identify four important advantages of an HSA for an employer: - ANS-1. Employer
contributions to an HSA are tax deductible for income tax purposes
2. Employer contributions to an employee's HSA account are not subject to payroll
taxes.
3. Employee salary reduction contributions to an HSA are not subject to payroll tax
4. Employer could reduce health care premiums paid by increasing the deductible
and/or out of pocket costs. This reduction could be used fund separate HSA's for
employees
, (5-1) An important reason the ACA was passed was to make affordable coverage
available to those who do not work for _____ _____. - ANS-Large employers
(5-1) A _____ is a set amount that the insured must pay for a service, such as a doctor's
visit. - ANS-Copayment
(5-1) The _____ ___-___-_____ limit is a stop-loss amount that allows individuals to
know the maximum amount they might have to pay for health expenses in any given
year. - ANS-Maximum Out-of-Pocket (MOOP)
(5-1) HSA holders can choose to save up to $_____ for an individual and $_____ for a
family. HSA holders age 55 and older can save an extra $_____ and these contributions
are 100% tax deductible from gross income. - ANS-$3,550 / $7,100 / $1,000
(5-1) An individual is eligible to make tax-deductible contributions to an HSA provide
they: (4 provisions) - ANS-1. are covered under a high deductible health plan
2. are not entitled to any other health plan that is not a high deductible health plan
(HDHP)
3. are not enrolled in Medicare
4. cannot be claimed as a dependent
(5-1) An employer is eligible to establish an HSA for employees if: (2 provisions) -
ANS-1. The employer maintains a HDHP
2. Doesn't maintain any health plan at all
(5-1) HSA qualified medical expenses do not include those expenses covered by
_____. - ANS-Insurance
(5-1) HSA qualified medical expenses do not include premium payments for health
insurance other than for: (3 circumstances) - ANS-1. LTC insurance
2. Premiums for continuation coverage (COBRA)
3. Premiums while an individual is receiving unemployment benefits
(5-1) A one-time rollover from an _____ account to an HSA is permitted, while rollovers
from _____ _____ are not. - ANS-IRA / Qualified plans
(5-1) Distributions from an HSA to pay for qualified expenses are ___-_____.
Distributions not for this purpose are taxed as ordinary income plus an additional
_____% tax. (unless after death, disability, or if owner is age 65 or older) - ANS-Tax-free
/ 20%
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