Health care reform comprises two major laws: the Patient Protection and Affordable Care Act (PPACA), and the Health Care and Education Reconciliation Act (HCERA). The IRS and other federal agencies have been issuing important guidance on health care reform. This course reviews the major tax provisions in PPACA and the IRS-issued guidance.
final exam score:
final exam status:
90%Question 1
Incorrect
Under the individual mandate program, an individual is responsible for a payment if the individual:
(You Answered) Qualifies for an exemption from the coverage requirement
Has health insurance that qualifies as minimum essential coverage
(Correct Answer) Is divorced
Has coverage for him- or herself and dependents
Question 2
Correct
The individual affordability exemption applies when annual contributions exceed _____ of the taxpayer’s household income.
5 percent
(You Answered) (Correct Answer) 8 percent
9.5 percent
10 percent
Question 3
Correct
The PPACA exempts all of the following from the requirement for coverage or imposition of monthly penalty amounts except:
(You Answered) (Correct Answer) Taxpayers younger than 18
Individuals lacking coverage for three consecutive months or fewer
Incarcerated individuals
Individuals who are not lawfully present in the United States
Question 4
Correct
Small businesses seeking assistance in initiating group health plans can use:
American Health Benefit Exchanges
(You Answered) (Correct Answer) SHOP Exchange
Employer mandate exchange
Health insurance premium assistance
Question 5
Correct
A family with an income of 400 percent of the federal poverty level may qualify for the premium assistance tax credit if their health premiums exceed at least ____ of their household income.
2 percent
5 percent
8 percent
(You Answered) (Correct Answer) 9.5 percent
Question 6
Correct
Under PPACA, an applicable large employer subject to employer mandate requirements is one that employs ____ or more full-time or full-time equivalent employees.
25
(You Answered) (Correct Answer) 50
75
100
Question 7
Correct
Which of the following is not a category of wellness program under the final regulations for plan years as of January 1, 2014?
(You Answered) (Correct Answer) Incentivized wellness programs
Participatory wellness programs
Activity-only wellness programs
Outcome-based wellness programs
Question 8
Correct
The IRS has postponed the ____ until January 1, 2015:
Individual shared responsibility payment
Health insurance premium assistance tax credit
(You Answered) (Correct Answer) Employer shared responsibility payment
None of the above was postponed
Question 9
Correct
Which of the following taxes/fees under PPACA is scheduled to take effect in 2014?
Branded prescription drug fee
Medical device excise tax
(You Answered) (Correct Answer) Annual health insurance provider fee
Indoor tanning service tax
Question 10
Correct
The Supreme Court upheld the constitutionality of the PPACA under which of the following?
Congress’s power to establish due process
Congress’s powers over interstate commerce
(You Answered) (Correct Answer) Congress’s taxing power
Congress’s power to expand federal health care systems such as Medicare