1.

What is a flexible spending account?

A flexible spending account is an account established by the employer for an employee: (Select the best answer below.)

		a. to use after-tax income to pay for medical expenses.
		b. to defer paying taxes on income.
		c. to use pre-tax income to pay for medical expenses.
		d. to purchase discount merchandise from preferred vendors.

2.

The purpose of long-term care insurance is to cover expenses associated with long-term health illnesses:(Select the best answer below.)

		a. for persons on Medicaid.
		b. for persons on Medicare.
		c. for persons age 65 or older.
		d. that cause individuals to need help with everyday tasks.

3.

What is a health savings account, or HSA? Why is this account often preferable to a flexible spending account?

		a. An HSA has higher contribution limits than a flexible spending account and you can carry over any remaining funds into succeeding years. In contrast, flexible spending accounts must be depleted each year.
		b. An HSA has lower contribution limits than a flexible spending account, but you can carry over any remaining funds into succeeding years. In contrast, flexible spending accounts must be depleted each year.
		c. A flexible spending account has higher contribution limits than an HSA and you can carry over any remaining funds into succeeding years. In contrast, health savings accounts must be depleted each year.
		d. An HSA has higher contribution limits than a flexible spending account, but it must be depleted each year. In contrast, with flexible spending accounts you can carry over any remaining funds into succeeding years.

4.

What is a high-deductible health plan? How is this type of plan related to an HSA?

		a. In order for a person to be eligible for an HSA they must have a high-deductible health plan.
		b. Both an HSA and a high-deductible health plan have high deductibles.
		c. In order for a person to be eligible for a high-deductible health plan they must have an HSA.
		d. An HSA is the same thing as a high-deductible health plan.