Insurance Health Exam Prep CH10

In group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

100%

Under a fully contributory health plan, how are benefits received by the employee?

Income tax free

What are the tax implications for employer contributions to health reimbursement accounts?

Employer contributions are tax deductible as business expenses

Under what employer-provided plan are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?

Disability income

How are the benefits of group accidental death and dismemberment policy received?

Income tax free

What is the tax advantage of the employer paying premiums for its employees for disability income insurance?

Premiums are deductible as a business expense

How long do short-term disability group plans pay benefits?

For a period of less than 2 years

How are benefits received by the business from a key person disability insurance?

Income tax free

In order to be eligible for coverage by an HSA, an individual must also be covered by what type of health plan?

High Deductible Health Plan (HDHP)

How are individually-owned disability income benefits taxed once received by the insured?

Disability benefits are not taxed; they are received income tax free

Disability benefits are not taxed; they are received income tax free

The funds can be carried forward to the next year

How are excess funds in an employee's HSA handled?

The funds can be carried forward to the next year.

All of the following are tax-free withdrawals from a Health Savings Account (HSA)

Covering the cost of eyeglasses, Laboratory and x-ray expenses, and Nursing home insurance premium.

Premiums paid by self-employed sole proprietors or partners for medical expense insurance are

Totally tax deductible.

How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?

They are tax deductible.

true regarding benefits paid to disabled employees?

They may be subject to taxation if the premium was paid by the employer.

When an employee covered under a health reimbursement account changes employers, the HRA

Stays with the employer.

When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?

When the expenses exceed a certain percentage of the insured’s adjusted gross income

What is the maximum amount that can be contributed to an MSA of the high-deductible plan for individuals?

65%

Medical Savings Accounts (MSAs) are available to small business employees and self-employed individuals who have

High deductible health insurance.

Premium payments for personally-owned disability income policies are

Not tax deductible.

What percentage of individually-owned disability income benefits is taxable?

0%

An insured has a $1,000 HRA account through his employer. He incurred $750 in medical expenses the first year of the plan. How much, if anything, will the insured be able to roll over toward the next year's expenses?

$250

The benefits received by the business in a Disability Buy-Sell policy are

Income tax free.

For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?

100%

what about HRAs is TRUE?

The account allows roll-over of unused balances at the end of the year at the employer's discretion