Question 1

An emerging class of health insurance programs is based on consumer-driven health care,where employees play a greater role in decisions on their health care,have better access to information to make informed decisions,and share more in the costs.

Accepted Answer

An emerging class of health insurance programs is based on consumer-driven health care,where employees play a greater role in decisions on their health care,have better access to information to make informed decisions,and share more in the costs.

Question 2

With consumer-driven health plans,it is common to increase the insurance ________.

Accepted Answer

B)Consumer-driven health care refers to the objective of helping companies maintain control over costs while also enabling employees to make greater choices about health care.This approach may enable employers to lower the cost of insurance premiums by selecting plans with higher employee deductibles.

Question 3

Health maintenance organizations cover all services for a fixed fee but control is exercised over which doctors and health facilities a member may use.

Accepted Answer

Health maintenance organizations (HMOs)cover all services for a fixed fee but exercise control over which doctors and health facilities a member may use.

Question 4

All of the following are examples of specialized health-related insurance plans EXCEPT ________.

Accepted Answer

C)Employers often use separate insurance plans to provide specific kinds of benefits and are often referred to as specialized insurance plans.We will focus on dental plans,vision plans,prescription drug plans,and mental health and substance abuse plans because of the rampant inflation in prescription drug costs and the increased recognition that mental health disorders may hinder worker productivity.Managed care refers to a general approach to the manner in which health care is provided.

Question 5

Health care benefits represent the most expensive cost in the area of indirect financial compensation.Which of the following is NOT a factor that has combined to create this situation?

Accepted Answer

A)A number of factors have combined to create the high cost of health care: an aging population; a growing demand for medical care; increasingly expensive medical technology; and inefficient administrative processes.

Question 6

The aging population and inefficient administrative processes have been factors in the rising cost of health care.

Accepted Answer

A number of factors have combined to create the high cost of health care including an aging population,a growing demand for medical care,increasingly expensive medical technology,and inefficient administrative processes.

Question 7

Most discretionary benefits plans originated at the turn of the 20th century.

Accepted Answer

Most discretionary benefits originated in the 1940s and 1950s.During both World War II and the Korean War,the federal government mandated that companies not increase employees' wages or salaries,but it did not place restrictions on companies' employee benefits expenditures.Companies invested in expanding their offerings of discretionary benefits as an alternate to pay hikes as a motivational tool to enhance worker productivity.Legally required benefits emerged in the early part of the 20th century to address various social problems such as the effects of the Great Depression.

Question 8

Jeff lost his job in November 2015.According to COBRA,Jeff may keep his employer's health care coverage until ________.

Accepted Answer

D)Under COBRA,individuals may keep their coverage,as well as coverage for their spouses and dependents,for up to 18 months after their employment ceases.The individual,however,must pay for this health insurance,and it is expensive.

Question 9

Julie has health insurance through her employer.The managed-care health organization used by Julie's employer covers all services for a fixed fee.However,Julie may only use the doctors and health facilities chosen by the managed-care health organization.Julie is most likely a member of a(n)________.

Accepted Answer

B)HMOs cover all services for a fixed fee but exercise control over which doctors and health facilities a member may use.PPOs provide incentives for members using services within the system,but out-of-network providers may be used at higher costs.

Question 10

With a health savings account,an employee can set aside an unlimited amount of pretax funds to pay for medical expenses.

Accepted Answer

HSAs let workers put up to $6,550 a year in a pretax account that they can tap for medical expenses.Individuals deposit money on a pretax basis to pay for doctor visits,prescriptions,and other expenses,as well as to save for future medical expenses and build savings long-term.

Question 11

A ________ plan pay benefits to employees on a reimbursement basis.

Accepted Answer

C)Fee-for-service plans provide protection against health care expenses in the form of a cash benefit paid to the insured or directly to the health care provider after the employee has received health care services.These plans pay benefits on a reimbursement basis.

Question 12

Flexible spending accounts and health savings accounts are examples of ________.

Accepted Answer

A)Consumer-driven health care plans give each employee a set amount of money annually with which to purchase health care coverage which involves high-deductible insurance coverage combined with a tax-advantaged account like a flexible spending account or health savings account.They are a good way for employers to provide the same caliber of benefits to their employees while also reducing premiums and involving employees in the cost of coverage.

Question 13

A major disadvantage of an FSA is that generally employees forfeit any amounts left unspent in the accounts at year end.

Accepted Answer

Indeed,a major disadvantage of an FSA is that generally employees forfeit any amounts left unspent in the accounts at year end.Health reimbursement accounts and health savings accounts permit carrying over of unused amounts from year to year.

Question 14

Educational assistance,subsidized cafeterias,and relocation benefits are examples of ________.

Accepted Answer

B)Organizations offer a variety of benefits that can be termed "employee services." These benefits encompass a number of areas,including child care,educational assistance,food services/subsidized cafeterias,scholarships for dependents,and relocation benefits.

Question 15

In a brief essay,discuss some of the reasons why companies choose to offer employee benefits.

Accepted Answer

The answer of In a brief essay,discuss some of the...

Question 16

Which of the following is a tax-free health spending and savings account available to individuals and families with qualified high-deductible health insurance policies?

Accepted Answer

C)Health savings accounts (HSA)are tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulations.HSAs are an important tool in the search to change consumers' health care spending behaviors and better manage health costs.It gives individuals a stake in managing their own health care dollars.A flexible spending account (FSA)is a health benefit plan established by employers that allows employees to deposit a certain portion of their salary into an account (before paying income taxes)to be used for eligible expenses.Defined benefit plans and cash balance plans are two types of retirement plans.

Question 17

Consumer-driven health savings accounts help employees defray the cost of ________.

Accepted Answer

B)The most popular consumer-driven approaches are health savings accounts,health reimbursement accounts,and flexible spending accounts.These accounts provide employees with resources to pay for medical and related expenses not covered by higher deductible insurance plans at substantially lower costs to employers.

Question 18

Coinsurance refers to the amount a person has to pay for medical services before the health plan begins to pay benefits.

Accepted Answer

Coinsurance refers to the percentage of covered expenses paid by the insured.Most indemnity plans stipulate 20 percent coinsurance.This means that the plan will pay 80 percent of covered expenses,whereas the policyholder is responsible for the difference,in this case 20 percent.Coinsurance amounts vary according to the type of expense.Insurance plans most commonly apply no coinsurance for diagnostic testing and 20 percent for other medical services.The deductible refers to the amount a person has to pay for medical services before the health plan begins to pay benefits.

Question 19

If David uses an in-network provider of his employer's managed-care health organization,then he pays lower fees than if he uses an out-of-network provider.David is most likely a member of a(n)________.

Accepted Answer

C)Preferred provider organizations (PPOs)are managed-care health organizations in which incentives are provided to members to use services within the system; out-of-network providers may be used at greater cost.HMOs cover all services for a fixed fee but exercise control over which doctors and health facilities a member may use.

Question 20

Money deposited into FSAs can be rolled over into the next year,while HSA funds left over at the end of the year are forfeited.

Accepted Answer

A disadvantage of an FSA is that generally,employees forfeit any amounts left unspent in the accounts at year-end.However,any amount in an HSA left over at the end of the year may be used to pay medical expenses in future years.

Quiz 10: Indirect Financial Compensation Employee Benefits:

An emerging class of health insurance programs is based on consumer-driven health care,where employees play a greater role in decisions on their health care,have better access to information to make informed decisions,and share more in the costs.

With consumer-driven health plans,it is common to increase the insurance ________.

Health maintenance organizations cover all services for a fixed fee but control is exercised over which doctors and health facilities a member may use.

All of the following are examples of specialized health-related insurance plans EXCEPT ________.

Health care benefits represent the most expensive cost in the area of indirect financial compensation.Which of the following is NOT a factor that has combined to create this situation?

The aging population and inefficient administrative processes have been factors in the rising cost of health care.

Most discretionary benefits plans originated at the turn of the 20th century.

Jeff lost his job in November 2015.According to COBRA,Jeff may keep his employer's health care coverage until ________.

With a health savings account,an employee can set aside an unlimited amount of pretax funds to pay for medical expenses.

A ________ plan pay benefits to employees on a reimbursement basis.

Flexible spending accounts and health savings accounts are examples of ________.

A major disadvantage of an FSA is that generally employees forfeit any amounts left unspent in the accounts at year end.

Educational assistance,subsidized cafeterias,and relocation benefits are examples of ________.

In a brief essay,discuss some of the reasons why companies choose to offer employee benefits.

Which of the following is a tax-free health spending and savings account available to individuals and families with qualified high-deductible health insurance policies?

Consumer-driven health savings accounts help employees defray the cost of ________.

Coinsurance refers to the amount a person has to pay for medical services before the health plan begins to pay benefits.

If David uses an in-network provider of his employer's managed-care health organization,then he pays lower fees than if he uses an out-of-network provider.David is most likely a member of a(n) ________.

Money deposited into FSAs can be rolled over into the next year,while HSA funds left over at the end of the year are forfeited.