Question 1

Which of the following employee benefits provides compensation for 26 to an employee who lost their job due to no fault of their own?

Accepted Answer

Unemployment insurance provides compensation to employees who have lost their job due to no fault of their own, such as being laid off or a company downsizing. This is different from long term disability insurance, which provides benefits for employees who are unable to work due to a disabling illness or injury. Workers' compensation provides benefits for employees who are injured on the job, while social security and Medicare provide benefits for retired or disabled individuals.

Question 2

If an employer decides to self fund their insurance plan:

Accepted Answer

D

Question 3

In order to be eligible for unemployment insurance an individual must do all of the following EXCEPT:

Accepted Answer

To be eligible for unemployment insurance, an individual must register with their state's employment service, file a claim with the appropriate state agency, follow guidelines such as reporting income and job offers, and meet their state's eligibility requirements. However, declining job offers for 26 weeks would make the individual ineligible for benefits as it shows a lack of effort to obtain suitable employment. Therefore, declining job offers is not a requirement to be eligible for unemployment insurance.

Question 4

A health insurance program available to those over the age of 65 or to those who are disabled is known as:

Accepted Answer

Medicare is a government-run health insurance program that is available to those over 65 and to those who are disabled.

Question 5

All of the following are accurate statements about voluntary benefit programs EXCEPT:

Accepted Answer

Voluntary benefit programs are optional for employees to enroll in and are not required even if they are offered by the employer. It is up to the employee to decide if they want to participate in these programs.

Question 6

The purpose of consumer driven health plans is:

Accepted Answer

Consumer driven health plans aim to empower employees to make better health care decisions and take greater responsibility for their health care costs, by giving them more control over their health care spending. By making employees pay more attention and become more involved in their health care decisions, the hope is that they will make better choices, utilize preventative care, and lead healthier lifestyles. This can lead to better health outcomes and ultimately lower health care costs for both the employee and the employer.

Question 7

All of the following statements are accurate regarding health reimbursement accounts EXCEPT:

Accepted Answer

HRAs (Health Reimbursement Accounts) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Employees cannot contribute to HRAs, only employers can. These accounts are indeed tax-deductible to the employer and can be used to pay for qualified medical expenses even after retirement. However, employees can have either an HRA or an HSA (Health Savings Account) if they are covered by a High Deductible Health Plan (HDHP), but having both simultaneously is subject to specific IRS rules that limit the circumstances under which both can be held. This makes the statement about employees being able to have both an HRA and an HSA without qualification inaccurate.

Question 8

John, a heavy smoker and an employee of a local utilities company, recently found out that he has lung cancer. The cost of his medical treatments would be covered under:

Accepted Answer

A traditional health care plan would cover medical treatments for illnesses like lung cancer. The other options are specific to occupational diseases or unemployment, which do not apply to John's situation as described.

Question 9

Money can be deposited into a ________ by both the employer and employee and used by the employee to pay for health care related expenses.

Accepted Answer

A health savings account (HSA) is a type of savings account that allows individuals to deposit pre-tax dollars into it to pay for qualified medical expenses. Both employers and employees can contribute to the HSA, and the funds are owned by the employee. HSAs are typically paired with high deductible health plans, but they offer tax advantages and flexibility for the employee to use the funds for a range of health-related expenses.

Question 10

Jose is enrolled in his employers health insurance coverage. He went to the doctor this morning and had to pay $85.00 for his office visit because he had not yet met his annual deductible of $500. Which of the following types of plans does Jose most likely participate in?

Accepted Answer

Jose most likely participates in a Traditional health care plan because these plans often include deductibles that must be met before the insurance starts to pay for medical expenses. The fact that he had to pay $85.00 for his office visit indicates he is covering costs out-of-pocket until he meets his deductible, which is characteristic of traditional health care plans.

Question 11

All of the following statements accurately describe a managed care plan EXCEPT:

Accepted Answer

Managed care plans typically have deductibles, but they are not necessarily high. In fact, many managed care plans have low or zero deductibles.

Question 12

A catastrophic health care plan which does not pay for the first few thousand dollars of an individual medical costs each year and only pays when the employee has a major medical issues is knowns as a:

Accepted Answer

A catastrophic health care plan that does not pay for the initial expenses and only covers major medical issues is commonly referred to as a high deductible health plan. Health savings accounts and health reimbursement accounts can be paired with high deductible health plans, but they are not the same thing. Traditional health care plans and self-funded plans are not typically associated with high deductibles or catastrophic coverage.

Question 13

All of the following are mandatory employee benefits EXCEPT:

Accepted Answer

Long term disability insurance is not a mandatory benefit required by federal law for all employers to provide, unlike workers' compensation, unemployment insurance, Social Security, and Medicare, which are mandatory.

Question 14

An employer can reduce its prescription drug costs by:

Accepted Answer

All of the listed strategies can be effective in reducing prescription drug costs for an employer. Creating a two-tiered copay system can incentivize employees to choose cheaper generic drugs, while using a formulary list and requiring the use of a mail-order service can help steer employees towards lower-cost drugs or suppliers. Requiring the use of generic drugs is also another effective approach for reducing prescription drug costs. By utilizing a combination of these strategies, an employer can better manage its healthcare costs and provide more affordable benefits to its employees.

Question 15

Which of the following are the most important considerations when creating a benefits program?

Accepted Answer

The appropriateness of programs for your employees and regulatory requirements are crucial when creating a benefits program. You want to ensure that the benefits offered will meet the needs of your employees and comply with any legal requirements. While employer cost and convenience and employee eligibility and coverage termination are important considerations, they are secondary to ensuring that the benefits are appropriate and compliant. Employee cost and availability of physicians and safety guidelines are also relevant, but not the most important when creating a benefits program.

Question 16

Ellen fell at work and twisted her ankle. She reported the accident to her supervisor, received appropriate medical treatment, and had to miss 3 days of work. The cost of her medical bills would be covered under:

Accepted Answer

Workers' compensation is a type of insurance that provides benefits to employees who are injured or become ill as a direct result of their job. This includes medical expenses and lost wages, which Ellen would be eligible for due to her work-related injury. A self-insured healthcare plan or a preferred provider organization plan would not typically cover work-related injuries. Unemployment insurance and Medicare would also not apply in this situation.

Question 17

A wellness program generally includes which of the following?

Accepted Answer

A wellness program generally involves activities and services that promote physical and mental well-being among employees. These activities may include health risk assessments, biometric screenings, weight management programs, tobacco cessation programs, and fitness classes. Dental and vision insurance, health maintenance organization plans, and health savings accounts are examples of healthcare benefits that may be offered as part of an employer's overall healthcare package, but they do not necessarily fall under the category of a wellness program.

Question 18

All of the following statements are accurate in regard to workers' compensation EXCEPT:

Accepted Answer

The answer of All of the following statements are accurate...

Question 19

All of the following statements about Social Security are accurate EXCEPT:

Accepted Answer

Social Security is intended to provide retirement or disability income to eligible individuals, but it is not designed to fully replace all other sources of income.

Question 20

If an employer offers an HDHP which has a monthly premium of $400 and a deductible of $5000 and also offers a traditional health care plan that has a monthly premium of $800 and a $1000 deductible, what is the difference in the total annual cost (premium and deductible) to the employee and which plan should they choose?

Accepted Answer

The answer of If an employer offers an HDHP which...

Quiz 12: Employee Benefits and Safety Programs