Question 1

Some companies have adopted high-deductible workers' compensation plans,substantially lowering their premiums.(High-Deductible Plans)

Accepted Answer

Some companies have indeed adopted high-deductible workers' compensation plans to lower their premiums.

Question 2

Longer waiting periods is one way companies try to reduce the cost of benefits.(Waiting Periods)

Accepted Answer

Longer waiting periods mean employees have to wait longer before becoming eligible for benefits, thus reducing the amount of time the company has to pay for those benefits. This can help lower the overall cost of providing benefits to employees.

Question 3

The top reason companies outsource benefits functions is for the expertise.(Outsourcing the Benefits Function)

Accepted Answer

Outsourcing benefits functions allows companies to access a team of experts that specialize in benefits administration, which can improve the quality and efficiency of the company's benefits program.

Question 4

Fee-for-service plans establish provider payment systems to control the costs of health care.(Provider Payment Systems)

Accepted Answer

Fee-for-service plans typically pay providers for each service rendered, which can lead to increased costs as there is an incentive to provide more services rather than controlling costs.

Question 5

Case management is conducted by primary care physicians.(Case Management)

Accepted Answer

While primary care physicians may be involved in case management, it is typically conducted by case managers or care coordinators who specialize in helping patients navigate the healthcare system and manage their medical needs.

Question 6

ERISA sets forth legally required disclosure requirements.(Legal Considerations in Benefits Communication)

Accepted Answer

ERISA (Employee Retirement Income Security Act) does set forth legally required disclosure requirements for employee benefits communication.

Question 7

Group meetings and audiovisual presentations provide the key features of benefits programs,conveying the "big picture" and helping potential employees compare benefits offerings with those offered by other companies they may be considering.(The "Good Business Sense" of Benefits Communication)

Accepted Answer

The answer of Group meetings and audiovisual presentations provide the...

Question 8

Employers have been shifting health related costs to employees partly because of the economic downturn starting in the 2000s.(Employee Education)

Accepted Answer

The economic downturn starting in the 2000s led to employers shifting health related costs to employees in order to cut costs.

Question 9

Pretax contributions do not reduce the amount of annual income subject to income tax.(Employee Contributions)

Accepted Answer

Pretax contributions reduce the amount of annual income subject to income tax because the contributions are made before income taxes are calculated, thereby lowering taxable income.

Question 10

It is possible to have a qualified Section 125 cafeteria plan for managers only.(Cafeteria Plans under Section 125)

Accepted Answer

A Section 125 cafeteria plan must not discriminate in favor of highly compensated employees regarding eligibility to participate, contributions, or benefits. Offering a plan exclusively to managers (who are likely to be highly compensated) would violate these nondiscrimination requirements.

Question 11

Mix-and-match plans allow employees to purchase any benefit but at only certain levels.(Types of Flexible Benefit Plan Arrangements)

Accepted Answer

Mix-and-match plans allow employees to choose from a variety of benefits and levels, offering flexibility in both the types and amounts of benefits they can purchase.

Question 12

ERISA limits waiting periods before participation in employer-sponsored health-care programs to a maximum of 90 days.(Waiting Periods)

Accepted Answer

The answer of ERISA limits waiting periods before participation in...

Question 13

A cafeteria plan is one example of a one-size-fits-all approach (A Comparison of Traditional Benefits Plans and Flexible Benefits Plans)

Accepted Answer

A cafeteria plan, also known as a flexible benefits plan, is designed to allow employees to customize their benefits to fit their individual needs. Therefore, it is not a one-size-fits-all approach.

Question 14

Employers are obligated to distribute summary plan descriptions to employees and DOL within 90 days of the plan becoming subject to ERISA's reporting requirements.(Legal Considerations in Benefits Communication)

Accepted Answer

Employers are required to distribute summary plan descriptions to employees within 90 days of the employee becoming covered by the plan, but there is no requirement to distribute them to the Department of Labor (DOL) within this timeframe.

Question 15

In most companies,employers choose whether an employee will participate in wellness programs,thus initiating a lifestyle intervention.(Lifestyle Interventions)

Accepted Answer

In most companies, participation in wellness programs is voluntary, allowing employees to choose whether or not they want to engage in lifestyle interventions.

Question 16

Employers must follow several guidelines to maintain a Section 125 cafeteria plan,specifically,the plan must be in writing.(Cafeteria Plans under Section 125)

Accepted Answer

Employers must maintain a written Section 125 cafeteria plan in accordance with IRS regulations.

Question 17

Pertaining to case management,serious health problems arising from injuries or illnesses may be acute (ongoing)or chronic (possibly life threatening).(Case Management)

Accepted Answer

Acute health problems are those that are severe and sudden in onset but not necessarily ongoing, while chronic health problems are long-developing syndromes that can be ongoing and possibly life-threatening.

Question 18

Under mix-and-match plans each flexible credit awarded to purchase benefits equals $10.(Types of Flexible Benefit Plan Arrangements)

Accepted Answer

Under mix-and-match plans, the value of each flexible credit awarded to purchase benefits is not universally set at $10; it can vary based on the employer's plan design and the cost of the benefits offered.

Question 19

Outsourcing benefits administration can be very expensive in the short fun because most or all contract fees are due up front.(Outsourcing the Benefits Function)

Accepted Answer

Outsourcing benefits administration often requires paying contract fees up front, making it expensive in the short run.

Question 20

Summary plan descriptions are generally short and only present the "big picture" of a benefit plan.(Legal Considerations in Benefits Communication)

Accepted Answer

Summary Plan Descriptions (SPDs) are detailed documents required by law that explain employees' rights, benefits, and responsibilities under the benefit plan in understandable language. They cover a wide range of information, including plan rules, financial information, and operation details, rather than just presenting a "big picture."

Quiz 10: Managing the Employee-Benefits System