What is the purpose of including deductible and co-insurance provisions in group medical insurance policies? | Homework.Study.com (2024)

Get access to this video and our entire Q&A library

• What is the purpose of the ICD code on the medical claim form? Does it have an effect on the payment from the insurance carrier?
• What is self-insurance? Explain.
• Why is insurance expense spread over multiple periods even though the policy coverage is paid in advance?
• What is the definition of assurance services?
• What do you understand by prepaid insurance?
• What are the relevant provisions of the Insurance Act of 1938?
• What differentiates a deductible IRA from a Roth (non-deductible) IRA? What conditions favour the non-deductible IRA?
• What does the actuarial term "accumulated benefits" mean?
• What does the actuarial term "vested benefits" mean?
• What factors must actuaries consider in determining the amount of future benefits under a defined benefit plan?
• What term is used to describe the cost of insurance protection?
• How to calculate insurance expense accounting with multiple policies?
• What is the purpose of audit in healthcare?
• Why provide a tax-free benefit for life insurance? Who would benefit?.
• What is the purpose of each of these two deductions? (1) the bad debt deduction (2) the deduction for casualty losses and theft
• What is information asymmetry, and how does it affect insurance companies?
• What generally involves the use of power by one group to gain a benefit at the expense of others?
• As it relates to insurance, what is asymmetric information?
• As it relates to insurance, explain the concept of float.
• If insurance goes into overhead, does that mean there is no insurance expense account?
• What are three sources of governmental insurance plans?
• As it relates to insurance, what is moral hazard?
• Who can opt for self-insurance?
• What is the purpose or objective of internal reviews as an element of quality assurance program?
• Briefly discuss the differences between Prepaid Insurance and Insurance Expense.
• What does the term "actuarial liability" mean?
• How to solve for insurance policy in financial accounting?
• As it relates to insurance, what is adverse selection?
• What is the difference between an assurance service and an attest engagement?
• Why is prepaid insurance a short term asset?
• What factors must be considered by the actuary in measuring the amount of pension benefits under a defined benefit plan?
• What kind of accounting activity is employee insurance expense paid in cash?
• What effect would it have on the balance sheet if prepaid insurance is used?
• When an insurance policy is purchased, which account is usually debited?
• How would the hazard insurance premium be prorated?
• What is the additional Medicare tax? Explain.
• What are the costs and benefits of a too-big-to fail policy?
• Explain what is meant by a special purpose profit and loss account.
• What is the role of an actuary relative to pension plans?
• What is a bond indenture? What provisions are usually included in it?
• Why are life insurance companies, pension funds, and mutual funds considered financial institutions?
• Explain in which account record insurance payment in accounting.
• Why do premiums and discounts exist? What don't organizations simply issue their bonds at par value?
• What is a minimum fixed charge coverage ratio, and what purpose does it serve in the company's loan agreements?
• How would a balance sheet show accrued insurance, as well as the portion paid?
• How should health insurance liabilities flow through general ledger account?
• Explain the depreciation concept. What items in a physician practice can be depreciated? What is the purpose?
• What is the purpose of a cash flow hedge?
• What is the purpose of consolidation accounting between a parent entity and subsidiaries?
• What is the purpose of a partnership agreement, and what should it include? Explain.
• What is the purpose of preparing a bank reconciliation?
• What is the purpose of a bank reconciliation?
• Why is it important to hire accountants that understand the unique needs of a healthcare organization?
• What is the purpose of the two types of subsidiary ledgers?
• What are the three reasons why a health care facility holds cash?
• What is the purpose of a non-profit entity? Explain.
• Do you debit or credit prepaid insurance when you get the insurance?
• Which field in the accounting table does the payment of insurance premium affect?
• What adjustment would be recorded for expired insurance?
• Explain how accrual accounting differs from cash basis accounting if: - Prepaid insurance beginning $400 - Payments for insurance during the period $1,200 - Prepaid insurance ending $700
• What is a subsidiary ledger and what purpose does it serve?
• What purpose do the multiple bond types serve? Why are some at a premium or a discount?
• Compare and contrast the benefits of having insurance (auto or homeowners). Provide examples of when and where having such casualty insurance for you or your business may not be needed.
• Explain how to account for expired insurance in a general journal.
• What accounts are affected when recording current month's portion of the prepaid insurance expense?
• Under what circ*mstances will the Prepaid Insurance account have a credit balance?
• Must all observations identified by an IA team during an assurance engagement be acted upon by management? Explain.
• Describe the purpose and rationale for accounting policies.
• What is the underlying objective of consolidated financial statements?
• What is accidental death and dismemberment coverage? Explain.
• What is a disaster recovery plan and how can a company implement such a plan and ensure it will be effective?
• What role do accountants play in risk management of healthcare organizations?
• What is the purpose of the mission support strategy?
• What adjustment(s) will have to be made and on what columns of the worksheet if $300 of $900 worth of prepaid insurance expired in a period?
• What are the major characteristics of divisional incentive compensation plans?
• Explain the difference between Defined Benefit Plan and Defined Contribution Plan of Employer Government Pension and OPEB Accounting.
• Explain four different assurance services that an auditor can provide.
• What was the original purpose of Social Security?
• Explain this statement. 'Insurance claims management is a vital part of the reimbursem*nt process'.
• What is the basis for the consolidation of a group of companies?
• What do you understand by payroll accruals?
• What is generally a company's goal when offering a trade discount? What is their goal when offering a cash discount? How do these goals differ?
• On April 1, Tule, Inc. paid $3,600 for an insurance premium on a three-year insurance policy. How does this transaction affect Tule's accounts? a. Increase insurance expense and decrease cash by $3,600 each b. Increase prepaid insurance and decrease cas
• What is the purpose of financial accounting?
• What is the purpose of a retained earnings restriction?
• Why is prepaid insurance considered a short term asset?
• What is GAAP and its purpose?
• What is a special revenue fund? For what purpose are these used?
• What are the major requirements of a qualified employer-sponsored plan?
• What is the main purpose of financial accounting?
• For what purpose, a company records a journal entry based on bank reconciliation?
• What is the primary purpose of effective tax planning? Explain.
• How does training support an organization's strategic goals and objectives? What does training do for an organization? Are there really any benefits? Why or why not?
• What is the main purpose and benefits of a financial statement worksheet?
• What are the two major purposes of establishing an allowance for uncollectible accounts?
• What are the provisions for subsequent measurement of inventory in the context of a hedging transaction?
• When property is disposed of, what factors influence the amount of the deductible loss?
• When a property is disposed of, what factors influence the amount of the deductible loss?
• How do you compute deductible mileage expenses?
• What is the purpose of calculating overheads, and how should it be done? Provide an example.