Deck 10: Legally Required Benefits

Question 1

The ________ is the minimum period of time an individual must be employed before becoming eligible to receive unemployment insurance under the Social Security Act of 1935.

Answer 1

base period

Question 2

Compared to the FICA rate,the SECA tax rate is which of the following amounts?

A)half as much
B)equal
C)three times as much
D)twice as much

Answer 2

D

Question 3

In 2022,how old will Cary have to be to receive full Social Security benefits?

A)57
B)62
C)65
D)67

Answer 3

D

Question 4

Describe five ways that an employer-sponsored health plan could lose its grandfathered status.

Question 5

Under the Family and Medical Leave Act,how many hours would Pierre have had to work in the previous 12 months in order for him to take time off to care for his wife and new child?

A)1,000
B)1,250
C)1,600
D)800

Question 6

Ensuring the financial solvency of individuals during periods of temporary unemployment and following work-related injuries helps to do which of the following?

A)promote tax revenue
B)promote the well-being of the economy
C)provide competitive advantage to some employers, but not to others
D)enhance organizational commitment

Question 7

The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?

A)OASDI
B)Medicare Part A
C)unemployment insurance
D)workers' compensation

Question 8

Which of the following is covered by Medicare Part A?

A)inpatient hospital care
B)IV drugs
C)ambulance
D)outpatient care

Question 9

Which of the following is the fundamental purpose of legally required benefits?

A)Social Security benefits
B)paid time off
C)social insurance
D)tax revenue source for the government

Question 10

To receive OASDI disability benefits,Sung Lee's disability would have to be expected to last at least how long?

A)6 months
B)12 months
C)3 months
D)18 months

Question 11

How is Medicare Part A financed?

A)payroll taxes paid only by employers
B)out-of-pocket
C)payroll taxes paid by both employers and employees
D)congressional fiat

Question 12

Samuel's full retirement age is 65 years old;and his monthly benefit at that age is $1,000.According to the Social Security Administration retirement program,what will Samuel's monthly benefit be if he decides to take retirement as early as age 63?

A)equal to $1,000
B)greater than $1,000
C)less than $1,000 but greater than $0
D)$0

Question 13

What is coinsurance?

A)Both parents have employer-sponsored insurance coverage for their children.
B)Two insurance companies combine to offer group insurance coverage.
C)An employee pays all out-of-pocket expenses before the insurance takes effect.
D)The insured pays a percentage of covered expenses.

Question 14

To be eligible for unemployment insurance benefits,an individual must meet which of the following requirements?

A)has been employed for at least 5 years
B)has not voluntarily changed employers within a 3-year period
C)has not been terminated because of gross violations of workplace conduct
D)has been eligible to receive Medicare benefits for at least 10 years

Question 15

Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.

Question 16

To be fully insured under the OASDI retirement benefit,an employee would have to work at least how long?

A)24 months
B)5 years
C)10 years
D)30 years

Question 17

Compare Social Security disability benefits with the workers' compensation disability benefits.

Question 18

During the early 20th century,high incidences of industrial accidents and occupational illnesses prompted which of the following benefits?

A)Social Security disability insurance
B)Social Security unemployment insurance
C)Social Security survivor insurance
D)workers' compensation

Question 19

Briefly discuss the components of legally required benefits.How can HR managers minimize the costs that are associated with legally required benefits?

Question 20

PPACA has mandated that the "donut hole," which is the gap in Medicare Part D prescription drug coverage,must decrease each year until it reaches no more than which of the following?

A)10 percent of the prescription drug medication cost
B)15 percent of the prescription drug medication cost
C)20 percent of the prescription drug medication cost
D)25 percent of the prescription drug medication cost

Question 21

What is another name for health maintenance organizations (HMOs)?

A)outpatient medical services
B)prepaid medical services
C)inpatient medical services
D)on-call medical services

Question 22

In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians,paying more for the choice?

A)fee-for-service plans
B)preferred provider organizations
C)HMOs
D)point-of-service plans

Question 23

Starting January 1,2004,eligible individuals are allowed to establish HSAs under which law?

A)Health Maintenance Organization Act
B)Mental Health Parity Act
C)Medicare Prescription Drug, Improvement and Modernization Act
D)HIPAA

Question 24

Approximately ________ percent of Americans experience some form of mental illness at least once during their lifetime.

Question 25

Explain the difference between insurance plans offered by insurance companies and self-funded insurance plans.

Question 26

What is the maximum amount that companies are permitted to charge COBRA beneficiaries?

A)102 percent of all employees' annual pay
B)102 percent of the employee's annual pay
C)102 percent of the cost of health insurance to the beneficiary under the employer's plan
D)102 percent of the federal poverty guidelines

Question 27

PPACA distinguishes between health plans that existed prior to the March 23,2010,enactment date and those that come into existence afterward.Individual and group health plans already in existence prior to enactment are referred to as ________ plans.

Question 28

Which approach to providing health care makes the most sense when a company's financial burden of covering employee medical expenses is less than the cost to subscribe to an insurance company for coverage?

A)managed care
B)consumer-driven health care
C)commercial insurance
D)self-funding

Question 29

A health insurance plan would lose its grandfathered status if it were to change ________.

Question 30

________ physicians determine when patients need the care of specialists and help to control costs by reducing the number of unnecessary visits to specialists.

Question 31

________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.

Question 32

Why do health reimbursement accounts (HRAs)appeal to employees with low salaries or hourly wages?

A)The contribution of employees is on a pretax basis.
B)Employees have the option not to contribute to an HRA.
C)Employees forfeit unused balances at the end of a year.
D)HRAs permit employees to carry unused balances from year to year.

Question 33

________ requires employers to offer affordable health insurance to employees.

Question 34

This type of account does not permit employees to carry over any remaining balance from year to year.

A)health reimbursement account
B)health savings account
C)flexible spending account
D)flexible savings account

Question 35

Consumer driven health care strives to achieve which of the following objective?

A)provide employees with a list of acceptable primary care physicians
B)provide employees with greater choices while also containing costs
C)increase the cost of health insurance
D)maintain low copayments and coinsurance amounts

Question 36

How often will Jill receive an unemployment check?

A)daily
B)weekly
C)bi-monthly
D)monthly

Question 37

Mia has Parkinson's disease but is on an insurance plan that saves her from having to make frequent visits to the pharmacy.She is probably on a ________ drug plan.

Question 38

Under which law must former employees be given the choice to continue their coverage,as well as coverage for their spouses and dependents,for up to 18 months?

A)Health Maintenance Act
B)Patient Protection and Affordable Care Act
C)Consolidated Omnibus Budget Reconciliation Act
D)Employee Retirement Income Security Act

Question 39

Which of the following refers to payments an individual makes as a condition of receiving medical services?

A)coinsurance
B)premium
C)deductible
D)copayments

Question 40

Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780 unspent balance remaining at the end of the year.What type of plan was it?

A)health savings account
B)flexible spending account
C)health reimbursement arrangement
D)fee-for service plan

Question 41

Which of the following type of program can help reduce workers' compensation claims?

A)COBRA coverage
B)wellness
C)workplace safety
D)employee assistance

Question 42

________ protects the transfer,disclosure,and use of health care information.

Question 43

Which strategy could help contain workers' compensation costs?

A)implementing health promotion programs
B)raising employees' share of health insurance costs
C)eliminating probationary waiting periods
D)requiring that employees purchase and appropriately use safety gear

Question 44

Managing staffing levels to avoid layoffs due to poor business conditions can help control which type of benefits cost?

A)unemployment insurance
B)health care continuation coverage
C)Medicare Part A coverage
D)Social Security disability coverage