Idaho Life Producer Practice Exam

According to the Affordable Care Act, what are the levels of coverage available?

1. Basic, Enhanced, Premium, Elite

2. Bronze, Silver, Gold, and Platinum

3. Essential, Advanced, Comprehensive, Specialty

4. Standard, Plus, Superior, Elite

The correct answer is: Bronze, Silver, Gold, and Platinum

The Affordable Care Act (ACA) established a system of health insurance marketplaces that categorize insurance plans into specific levels based on their coverage and cost-sharing structures. The correct classification includes four key levels: Bronze, Silver, Gold, and Platinum. Bronze plans generally cover about 60% of healthcare costs, meaning enrollees have higher out-of-pocket costs at the time of services. Silver plans cover around 70% of costs, offering a balance between premiums and out-of-pocket expenses. Gold plans provide approximately 80% coverage, resulting in lower out-of-pocket costs but higher monthly premiums. Finally, Platinum plans cover roughly 90% of healthcare expenses, leading to the highest premiums but least out-of-pocket spending for the insured. This tiered approach helps consumers understand the trade-offs between premium costs and out-of-pocket expenses and allows them to choose a plan that best fits their financial situations and healthcare needs. The other options do not represent the classifications established by the ACA, making them incorrect in this context.