Question

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.

Answer 1

1. What is a flexible spending​account? A flexible spending account is an account established by the employer for an​employee:

Ans.: (C) To use Pre-Tax Income to pay for Medical Expenses

This Account is given by the to the Employee to pay Out of Pocket Expenses, for the Employee - it has be paid before paying the taxes - that's it is said that it uses the Pre-Tax Income to pay the Medical Expenses.

2. The purpose of​ long-term care insurance is to cover expenses associated with​ long-term health​ illnesses:

(D) that cause individuals to need help with everyday tasks.

For the long term illness such long term care insurance help people who for suffereing from long term diseases and support such people to help with their every day tasks.

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

(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.

In HSA funds do not expire and Rollover money can be added to the Contribution Limit.

In FSA, Employees could add upto $500 of the unused amount to the next year’s plan in addition to the contribution limit. Further, Employers decide the carry forward limit.

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.

Yes, to have an HSA, a person must have a high-deductible health plan.