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CRPC Module #5 Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
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CRPC Module #5 Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
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CRPC Module #5(5-1 ACA's and HSAs) List the 5 levels of ACA health care plans available on public exchanges,
and the average percentage costs each covers: - ANS 1. Catastrophic 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% of 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. Employers could reduce health care premiums paid by increasing the deductible and/or out of
pocket costs. This reduction could be used fund separate HSAs 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%
(5-1) If an HSA account owner's spouse is named as the beneficiary, upon that owner's death
the HSA account remains intact, and the spouse will become the new _____ of the HSA on the
date of the original owner's death. - ANS Owner
(5-1) If a non-spousal beneficiary is named as the HSA beneficiary, the HSA will cease to be an
HSA at the owner's death, and the fair market value of the assets will be _____ to the
non-spousal beneficiary. - ANS Taxable
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