Deck 13: Managing Employee Benefits

Question 1

Which of the following statements is TRUE?

A) Anti-discrimination laws require that part-time employees must receive benefits if the company offers full-time employees benefits.
B) Employers are required to provide part-time employees government-mandated benefits, but other benefits are voluntary for the employer.
C) Part-time employees are typically not interested in benefits because they are usually covered by a spouse's or parents' insurance policies.
D) Most employers provide part-time employees pro-rated medical benefits, but no time-off benefits because these employees already work a reduced schedule.

Answer 1

B

Question 2

Common ways that benefits can impact organizational performance include all of the following EXCEPT

A) minimizing grievances and complaints.
B) reducing turnover.
C) increasing employee job satisfaction
D) improving recruiting success.

Answer 2

A

Question 3

A problem with flexible benefits plans is ____,a situation in which only higher-risk employees select certain benefits,such as health insurance,and lower-risk employees do not select these benefits.

A) concentration of risk
B) perceived invulnerability
C) adverse selection
D) the skewed distribution effect

Answer 3

C

Question 4

The most frequently outsourced benefits function is

A) managing paid time off plans.
B) education and tuition reimbursement programs.
C) coordination of FMLA leave.
D) the Employee Assistance Plan.

Question 5

Of all the benefits paid by employers,on average ____ make up the largest proportion of costs.

A) paid leaves, including sick leave
B) health insurance
C) retirement plans
D) long-term disability

Question 6

A flexible benefits plan

A) allows employees to contribute pre-tax dollars to buy additional benefits beyond the employer's basic package.
B) continuously updates benefit options as employee needs and desires change.
C) combines all time-off benefits into a total number of hours that employees can take off with pay.
D) allows employees to select the benefits they prefer from groups of benefits established by the employer.

Question 7

To prevent employees from making inappropriate benefits choices in a flexible benefits plan it is recommended that

A) the employees be required to select a core set of benefits.
B) the HR department counsel employees in wise benefit selection.
C) benefit flexibility be tied to employee seniority.
D) hourly employees not be offered flexible benefits.

Question 8

The most constructive way to view benefits is

A) a cost to be minimized.
B) a government-mandated burden.
C) culturally necessary.
D) a tool for competitive advantage.

Question 9

Ambrose has been recently transferred from the Ohio headquarters of his firm to the European office.He is surprised to learn that instead of the 10 days of vacation per year he receives from his employer,his European colleagues get

A) no discretionary vacation, only state holidays off.
B) exactly the same amount of vacation he gets in the U.S., but no family leave.
C) 20 days of vacation per year, double the Ohio office's practice.
D) over 30 vacation days a year.

Question 10

Employee benefits are a/an

A) legal and ethical responsibility of employers.
B) type of employer social activism.
C) type of corporate charity.
D) indirect reward for employees.

Question 11

One of the main responsibilities that managers have regarding benefits administration is to

A) monitor benefits usage of their subordinates.
B) answer technical questions on benefits.
C) coordinate the use of time-off benefits.
D) assist employees in filing benefit claims.

Question 12

As director of HR of a company that does not presently use benefits administration software,you want to reduce the number of HR benefits staff.The first area of benefits administration to target would be

A) calculating and monitoring employee paid-time-off and FMLA leaves.
B) employee benefit education and communication.
C) health benefits administration.
D) benefits enrollment.

Question 13

Betty is interviewing for a job with two different firms in the same industry and city.The job description and salary are identical.In one company the job will be unionized.The other company is non-union.Betty can expect that

A) the non-union firm will have more generous benefits.
B) the unionized firm will have more generous benefits.
C) the benefits will be the same at both companies, since benefits are typically based on salary level.
D) the unionized firm will likely offer no benefits, because these firms are encountering severe cost-pressures due to global competition.

Question 14

In the U.S.,Japan,Germany,France and other countries,____ is/are placing significant financial pressures on government-provided retirement security plans.

A) a high birth rate
B) an aging population
C) increasing standards for quality-of-life in old age
D) the trend for older workers to work past traditional retirement age

Question 15

In most developed countries,____ provide/s most health and retirement benefits for citizens.

A) employers
B) the government
C) non-governmental organizations, such as charities
D) workers' unions

Question 16

Flexible benefits plans have grown more popular because

A) changes in the tax code no longer give a cost advantage to standardized benefit packages.
B) the decreasing influence of unions in the workplace, which pressured employers to treat all workers the same.
C) employee family and work situations are more variable than they were in the past.
D) employees are more sophisticated about their needs and do not need the employer's paternalistic guidance necessary in the past.

Question 17

Gertie is an HR consultant who has been hired to advise a medium-sized company on how to use HR technology to make benefits administration less expensive.Gertie is amazed to find that the company's present HR system is entirely pencil-and-paper.In Gertie's discussions with the HR manager,she indicates that the greatest increase in use of technology by other companies is in

A) Web-based benefits enrollment.
B) conducting employee surveys.
C) monitoring usage of health benefits.
D) calculating and monitoring paid-time-off.

Question 18

As the director of compensation for a multi-location retailer,Jeff is reviewing the design of his company's benefits.He must answer all of the following questions EXCEPT

A) Which of the mandatory benefits can be dropped with the least negative impact on employee attitudes?
B) How much total compensation should be offered to employees?
C) What is the firm receiving in return for each benefit provided?
D) How flexible should the package of benefits be?

Question 19

The director of HR for MCTF Industries is measuring the effectiveness of the benefits at MCTF.She will need to calculate all of the following measures EXCEPT

A) benefits as a percentage of payroll over multiple years.
B) total cost of benefits compared with total cost of benefits of its main competitors.
C) benefits costs per employee group.
D) health care costs per participating employee.

Question 20

You are the director of benefits for a large,highly-profitable high-technology company widely respected as an employer-of choice.Organizational strategy requires that employees be world-class in their field.You are forming a committee to review the company's benefits design.The committee ought to focus on all of the following issues EXCEPT

A) whether the company should offer high pay in lieu of health insurance.
B) how flexible the package of benefits should be.
C) what proportion of total compensation benefits should comprise.
D) which mix of benefits will be most attractive to prospective employees.

Question 21

Which of the following benefits are NOT mandated by federal legislation?

A) health insurance
B) unemployment compensation insurance
C) continuation of health insurance after layoff
D) workers' compensation insurance

Question 22

Megatherium Industries is experiencing a long-term slowdown in sales.Consequently,it needs to permanently lay off a number of its manufacturing hourly employees and also many operations managers.In order to buffer the impact of the layoff on these workers,Megatherium will voluntarily offer a security benefit known as ____ to its departing employees.

A) unemployment insurance
B) outplacement compensation
C) severance pay
D) COBRA benefits

Question 23

What is workers' compensation?

A) payments provided to employees who are laid off for financial reasons
B) benefits provided to persons injured on the job
C) lawsuit judgments awarded to workers injured on the job
D) the employee's total pay package: wages plus benefits

Question 24

Which of the following individuals is NOT qualified to receive unemployment compensation?

A) An individual who was laid off for financial reasons.
B) An individual who was fired for poor productivity.
C) An individual who would like to work but who has not applied for any jobs in the last two weeks.
D) An individual who has been unsuccessfully looking for work for six months.

Question 25

Those benefits which employers in the United States are required to provide by law are called ____ benefits.

A) obligatory
B) federal
C) compulsory
D) mandated

Question 26

To be eligible for workers' compensation,the worker must

A) suffer a work-related injury or illness.
B) have purchased workers' compensation insurance.
C) not be totally or partially responsible for the accident or injury.
D) prove that the accident was caused by employer negligence.

Question 27

Which of the following statements is TRUE? Under federal law,employers must give employees

A) severance pay.
B) paid sick leave.
C) time off to care for sick children and parents.
D) medical insurance.

Question 28

If HR experts suggest that a solution for "presenteeism" is employee health-and-wellness programs,this means that these HR experts attribute presenteeism to

A) the need to reduce the amount of stress employees are subjected to in their jobs.
B) the use of recreational drugs at work.
C) employees coming to work when they are sick.
D) inadequate employer-provided health insurance.

Question 29

A "personal statement of benefits"

A) is the annual benefits report from employers to employees required by ERISA.
B) shows each employee how much his/her benefits are worth in dollars.
C) is a tool that allows employees to choose the type of benefits that best fits their personal needs.
D) is given to an employee upon termination so that he/she is knowledgeable about COBRA, severance pay, unemployment compensation, and other continuing benefits.

Question 30

For the typical employer,the largest proportion of the benefits dollar is spent on

A) legally required benefits.
B) insurance payments.
C) retirement plans.
D) paid rest periods.

Question 31

Which of the following statements about communication of benefits to employees is TRUE?

A) Benefits plans are highly complex and legalistic. Consequently, all written information must be followed up with face-to-face meetings between HR staff and employees.
B) Employees place such a low value on their benefits that they tend to ignore communication on this topic.
C) The main point that should be stressed in benefits communication is that most benefits, such as health insurance, are voluntary on the part of the employer and can be eliminated at any time..
D) Employees need to be educated on the value of their benefits, the financial cost of benefit to their employer, and why their benefits are being changed.

Question 32

Why do workers who do not have health insurance cause the health insurance rates to rise for employers who provide insurance for their workers?

A) Health care providers pass the cost of serving uninsured people on to employers in the form of higher prices for their services.
B) Health care costs for uninsured patients are pro-rated among insurance companies operating in the state based on the number of individuals the companies insure, thus increasing insurance companies costs.
C) Workers who do not have health insurance do not receive basic health care, making them sicker. When they eventually get jobs with insurance, they have very high usage of medical services for which their insurance pays.
D) Workers without health insurance tend to contract contagious illnesses, including drug-resistant tuberculosis. Consequently, insured workers and their families, who would otherwise remain healthy, catch these illnesses and require more medical care.

Question 33

What is the principle requirement of the Worker Adjustment and Retraining Notification Act (WARN)of 1988?

A) Employers must give severance pay to workers who permanently lose their jobs.
B) Most employers must give 60 days' notice if a mass layoff or facility closing is to occur.
C) Workers must be given the opportunity to relocate if the company is moving the plant.
D) Workers under age 50 are entitled to a retraining allowance if their jobs are eliminated.

Question 34

What is the basis for determining the employer's cost of unemployment compensation?

A) the type of business and industry and its known seasonal fluctuations in employment
B) the number of covered employees
C) the employer's total payroll cost
D) the number of claims filed by former employees

Question 35

"Cost sharing" benefits plans

A) involve employers sharing the costs of employee health insurance with government programs such as Medicare and Medicaid.
B) require employees to pay a larger proportion of their health benefits costs.
C) require insurance companies to share the profits they make with employers who purchase their health insurance plans which results in lower costs for employers.
D) will be illegal in 2012 because they have been held to be "kickback" schemes.

Question 36

During long-lasting economic declines,

A) state unemployment compensation funds often become exhausted.
B) the number of weeks of unemployment offered to out-of-work individuals has to be cut to conserve the funds.
C) employers are often forced to stop their contributions to unemployment compensation funds because of financial losses.
D) the weekly payments to each individual recipient are reduced.

Question 37

George has four children,all with poor vision and crooked teeth.George himself has high blood pressure and an over-active thyroid and takes many prescription medications.In addition,George's wife injured her spine in a sports accident and will require several operations.Consequently,George is looking for a job with an employer with generous benefits.It will be MOST DIFFICULT for George to find an employer with benefits to cover

A) the spine surgery.
B) the dental and orthodontia expenses.
C) the glasses and contacts.
D) the prescription drugs.

Question 38

Charlene,the director of compensation,wishes to estimate the administrative costs of the current benefits program,so that she can use that as a basis for evaluating alternative administrative methods.One of the most useful calculations Charlene can make is

A) HR compensation and benefits staff salaries divided by total expenditures on benefits.
B) HR staff time spent on benefit issues multiplied by their pay and benefits costs per hour.
C) the multiyear pattern of benefits as a percentage of payroll.
D) benefits costs by employee group.

Question 39

During summer vacation,Melinda worked as a "character" at a theme park.The job required her to wear a heavy costume over her body,including over her head.Melinda suffered heat stroke when the temperatures were over 95 degrees at the theme park.Her heat stroke was so severe that she suffered ill-effects for several months.Melinda was not well enough to enroll in school the for the fall semester and lost her college scholarship.Melinda received medical care through her employer's worker's compensation,which was fortunate,because Melinda did not have health insurance.Melinda

A) can sue her employer for endangering her health by requiring her to wear the heavy costume in extreme temperatures.
B) can sue her employer for loss of educational opportunity and for the amount of her scholarship.
C) is prevented from suing her employer by the workers' compensation laws.
D) cannot sue her employer because she accepted the medical care provided under workers' compensation rather than paying her medical expenses herself.

Question 40

How is workers' compensation usually funded?

A) by a tax levied on employers by state governments based on the employer's average monthly number of employees
B) by contributions to a pool of funds by organizations in the same industry which purchase insurance for the employers as a group
C) through state value-added taxes on goods sold and manufactured
D) by insurance purchased by employers from a private carrier or state insurance fund or by self-insurance

Question 41

Mark has four children under the age of 15.His wife has had a serious health problem that will keep her from working for the next few years.Mark's employer,Megatherium Industries,has moved to a new health insurance plan which involves Megatherium making contributions to an account to which Mark can also make pre-tax contributions.Mark can spend the money in this account on health insurance.The insurance has an $11,600 deductible for Mark's family,so he will be out of pocket over $11,000 before his health insurance coverage starts paying for his family's care.Mark's annual pre-tax salary is $80,000.Which of the following statements is TRUE?

A) This plan is illegal under federal laws requiring family health insurance be no more than 10% of the employee's annual salary.
B) This is a typical Health Savings Account which is an effective way for Megatherium to reduce its overall health insurance expenditures.
C) This is a flexible spending account under Section 125 of the Internal Revenue Code..
D) Megatherium is using an HMO.

Question 42

A trend in healthcare insurance benefits is

A) toward providing higher levels of benefits for higher-performing employees as a motivation tool.
B) toward eliminating or reducing benefits for classes of employees who have poorer health.
C) transferring more of the cost of health insurance to the employees from the employer.
D) toward standardizing benefits to make benefits provision more cost-effective.

Question 43

Caveat Emptor Services,Inc.,is a consulting firm that offers a service to employers that examines all medical work and charges.Caveat reviews the procedures done and the charges for the procedures.As necessary,Caveat obtains a second opinion about the medical procedures performed.Caveat is performing

A) medical monitoring.
B) reimbursement control.
C) a utilization review.
D) a medical services audit.

Question 44

____ consists of approaches that monitor and reduce medical costs using restrictions and market system alternatives.

A) Utilization review
B) Medical review programs
C) Managed care
D) Medical option plans

Question 45

Marge is very upset that her employer has begun requiring employees on the health plan to make co-payments for doctor's visits,prescriptions,and other medical services.Marge feels this is unfair.Marge's employer's previous health care plan probably was a/an

A) health maintenance organization.
B) preferred provider plan.
C) first-dollar coverage plan.
D) health utilization plan.

Question 46

Which of the following statements is FALSE about Health Savings Accounts?

A) HSAs require participants to "use it or lose it" in that unused funds cannot be rolled over to the next year.
B) Individual employees can set aside pre-tax dollars for medical care thus reducing the cost of healthcare by their tax rate.
C) Both employers and employees can make contributions to HSAs.
D) HSAs have high annual deductibles which must be paid by the employee participants..

Question 47

Rapid increases in the costs of health benefits are having all of the following effects EXCEPT

A) some employers are dropping health benefits for employees.
B) employers requiring retirees to pay more for continued health benefits.
C) causing employers to lobby for national, universal health insurance.
D) employers substituting mini-health insurance plans for traditional health coverage.

Question 48

A ____ is a managed care approach that provides health services to an organization's employees for a fixed period on a prepaid basis.

A) contractual medical organization (CMO)
B) preferred provider organization (PPO)
C) public/private health organization (PPH)
D) health maintenance organization (HMO)

Question 49

Which of the following statements is TRUE about HMOs?

A) One of the advantages of HMOs is that they provide care at all levels, from prevention, to maintenance, to treatment of illnesses, to hospitalization, and even to hospice care.
B) HMOs are mainly used for preventative medicine and wellness. Employees who are actively ill must use a PPO or POS plan.
C) HMOs charge the employer a flat rate per employee or per family.
D) HMOs are effective in reducing employee use of health benefits.

Question 50

Wanda has medical insurance through her employer.Whenever she visits the physical therapist for a knee injury,she is charged $25.Her employer's insurance covers the rest of the $150 fee.This is an example of

A) a co-payment.
B) first-dollar coverage.
C) managed care.
D) an HMO.

Question 51

For employers,the cost advantages of defined-contribution health plans include all of the following EXCEPT

A) increases in health-care costs are shifted to employees.
B) employees must control their own health-care usage.
C) employer's contributions are limited to a set amount.
D) unused funds in employee accounts roll back to the employer at the end of the year.

Question 52

Gigantic MotorVehicles,Inc.,has more retired employees than currently-employed workers.As part of its generous benefits plan in decades past,it provided all of its retirees with full medical benefits.Most of GMV's retirees are on fixed and limited incomes,and are barely making ends meet with savings,pension,and Social Security.In addition,many of the most elderly of the retirees,those over 80,have significant and expensive medical problems.Most of the retirees spent their entire careers with GMV,and actually took and kept these jobs just so that they could retire with good pensions and benefits.GMV has had disastrous financial performance over the past few years and has been cutting costs as much as possible without destroying the company's ability to perform.As HR director,your face all of the following issues EXCEPT

A) cutting health benefits to retirees and facing lawsuits.
B) the ethical dilemma of breaking the company's promises to people who are too old to have any other options for health care.
C) facing negative press and damaging GMV's image by acting against the interests of elderly and loyal former employees.
D) federal prosecution for cutting retiree's health benefits.

Question 53

The main difference between health savings accounts (HSAs)and health reimbursement accounts (HRAs)is that

A) unused funds in HSAs cannot be rolled over to the next year by the employee.
B) all funds in HRAs are contributed by employers.
C) there are no deductibles under HSA plans, whereas HRA plans have high deductibles.
D) HSA funds can only be applied to certain "qualified medical expenses," whereas there are fewer restrictions in HRAs.

Question 54

A system in which the employer makes contributions to each employee and the employee decides how to use this to cover his/her health-related expenses is called a/an ____ plan.

A) consumer-driven health
B) contributory health insurance
C) self-directed health
D) individual HMO

Question 55

Which of the following individuals would NOT qualify for COBRA? All of these employers have more than 20 employees.

A) the 16-year old daughter of an employee of a medical products company who died of a massive stroke while on company business
B) the husband of an employee of a museum who has just taken early retirement
C) the secretary of a church congregation who has been laid off because of declining church income
D) an employee who quit a job with a movie theater chain

Question 56

Which of the following statements is TRUE?

A) Mini-medical plans are most appealing to large companies with a high proportion of women employees.
B) These plans are popular with retirees who are working part-time because it supplements their Medicare coverage.
C) Mini-medical plans are inexpensive for the employer because the services provided are minimal and capped at a low level.
D) Mini-medical plans are becoming more popular because although they do not cover minor medical expenses, they do cover catastrophic illnesses or injuries.

Question 57

As director of HR you are discussing cost pressures on the company with the CEO and the CFO.Two possible options are suggested: (1)eliminating raises for employees next year or (2)reducing the health benefits for employees.The CEO and CFO ask you which reduction will cause the most dissatisfaction among employees.You say that research has implied that

A) employees will be just as upset with either loss of raises or reduced health benefits.
B) employees will be more upset with loss of raises because cash raises can be spent in any manner, whereas health benefits may not even be used during the year.
C) employees will be more upset with reduced health benefits than by the loss of pay raises.
D) employees are so unaware of their health benefits, they won't even notice reductions, whereas elimination of raises is a "high-visibility" change.

Question 58

What are the requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA)with respect to health care?

A) Employers with more than 50 employees must provide medical insurance for all full-time employees.
B) Most employers with 20 or more employees must offer extended health-care coverage to employees after they leave the organization.
C) Employees on COBRA pay 2% more for health insurance than they paid before going on the COBRA plan.
D) Employers offering medical insurance cannot exclude pre-existing conditions from coverage.

Question 59

A ____ is a health-care provider that contracts with an employer or an employer group to provide health-care services to employees at a competitive rate.

A) contractual medical organization (CMO)
B) preferred provider organization (PPO)
C) public/private health organization (PPH)
D) health maintenance organization (HMO)

Question 60

Anne has applied for a job with a company that has a mini-medical plan.Anne is 27 years old,single,has no dependents,and is in robust health.Her family health history is excellent.Anne is an avid snow skier on advanced courses,parasailer and show jumping competitor.Which aspect of the plan would be of the MOST concern to her?

A) Only 10 doctor visits per year are covered.
B) Only a few prescription drugs are covered.
C) Hospital coverage is very limited.
D) The choice of physicians is restricted.

Question 61

____ are more risky from the point of view of retirees than are ____.

A) Defined benefit, defined contribution
B) Defined contribution, defined benefit
C) Contributory plans, non-contributory plans
D) Non-contributory plans, contributory plans

Question 62

In a/an ____ plan the employer makes an annual payment of a predetermined amount into an employee's pension account.The retiree's payout will vary depending on the investment returns of the pension account.

A) ERISA
B) defined-benefit
C) non-contributory pension
D) defined-contribution

Question 63

A plan that allows employees to contribute pre-tax dollars to buy additional benefits is called a

A) flexible spending account.
B) health reimbursement arrangement.
C) tax-deferred benefit option.
D) cafeteria-style plan.

Question 64

Megatherium Industries had a generous defined-benefit pension plan for retirees for the last 50 years.Now,because of declines in the stock market,the investments in the pension plan are not generating enough revenue to fund the plan.Which of the following statement is TRUE?

A) Megatherium will probably have to make up the shortfall in the pension fund.
B) Megatherium must decrease the amount of pension payments to retirees to the level that is financially-sound based on the amount of money in the pension fund.
C) The federal government will step in and make up the shortfall as long as there has been no malfeasance on the part of the company.
D) Megatherium can suspend pension payments until the pension fund has recovered.

Question 65

Hugo is 45 and has been laid off by his employer,which is moving his job as a customer service representative to a company in India.Hugo figures he will need to work at least 20 more years,and he has little money in savings set aside for retirement.Hugo wants to find a job with an employer with a defined-benefit pension plan.Which of the following employers would be MOST likely to have such a pension plan?

A) a start-up wind-energy firm.
B) a printing company with 63 employees
C) a unionized manufacturing firm with 4,450 employees
D) a world-famous restaurant in a popular U.S. vacation spot

Question 66

ESOPs,401(k)plans,and profit-sharing plans are all examples of

A) pension plans.
B) contributory plans.
C) defined-benefit plans.
D) cash-balance plans.

Question 67

Which of the following is NOT a COBRA qualifying event?

A) employee moved from full-time with benefits to part-time without benefits
B) death of employee
C) employee and current spouse become divorced
D) employee termination for insubordination

Question 68

A pension plan in which retirement benefits are based on an accumulation of annual company contributions (as a percentage of the employee's pay)plus interest credited each year is called a ____ plan.

A) contributory retirement
B) self-funding
C) cash balance
D) defined-contribution

Question 69

____ is the main federal legislation providing privacy rights regarding employee medical records.

A) HIPAA
B) COBRA
C) ERISA
D) FMLA

Question 70

Which of the following individuals would NOT receive benefits from the Social Security system?

A) a 47-year-old person who has become unemployed through no fault of his/her own.
B) a 25 year-old person who was in a car accident and is now paralyzed and unable to hold a job.
C) the 70-year-old widower of a woman who was a dentist for 30 years.
D) a physical therapist who has stopped working at the age of 69.

Question 71

____ refers to a feature that allows employees to move their pension benefits from one employer to another.

A) Portability
B) Mobility
C) Vesting
D) Transferability

Question 72

____ is the right of employees to receive benefits from their pension plans if they remain with their employer a certain period of time.

A) Qualifying
B) Portability
C) Entitling
D) Vesting

Question 73

Claudia has become vested in her pension plan.This means that

A) if Claudia is laid off, she will receive not only the amount of money she has paid into her pension plan but also the funds that her employer contributed.
B) if Claudia leaves this employer and takes an opportunity with another company, she can transfer her pension fund balances to that new employer's plan.
C) if Claudia remains with her present employer until retirement, she will receive the maximum amount of pension available under the plan.
D) Claudia can take the funds she and her employer have invested in the pension plan and move them to a 401(k) or an IRA.

Question 74

Which of the following statements is TRUE?

A) Most U.S. citizens over 55 have at least $250,000 in savings and investments.
B) Most U.S. workers have pensions through their employers which will help support them in retirement.
C) Employers with fewer than 100 workers do not typically offer retirement benefits for their workers.
D) U.S. citizens are extremely sensitive to any changes in the federally-provided benefits offered by Social Security.

Question 75

All of the following are ways to reduce an organization's health insurance costs EXCEPT

A) programs to give employees financial incentives to lose weight and quit smoking.
B) providing gym memberships to employees or exercise equipment at the workplace.
C) employing utilization review of healthcare provider services and charges.
D) eliminating coverage for psychiatric illnesses and treatment for addiction.

Question 76

In a contributory pension plan,the money for pension benefits is paid by the

A) federal government.
B) employee through pre-tax deductions from his/her pay.
C) both employees and employers.
D) by the employer.

Question 77

A long-time assembly line worker,Ed,and his wife have divorced.Under COBRA rules,who must HR notify of their opportunities for extended health benefits?

A) only Ed's wife
B) Ed's wife and Ed's dependent children
C) Ed's wife, his dependent children, and Ed's dependent elderly parents
D) No one, since this is a divorce and not Ed's death.

Question 78

How are Social Security benefits funded?

A) an employer tax based on the employer's "experience rating"
B) deductions from the employee's paycheck which are transferred to the federal government by the employer
C) a federal tax on employee wages and salaries paid equally by employers and employees
D) on a state-by-state basis through payroll deductions

Question 79

Karen is diabetic.She quit her job as an internal auditor with a bank and two months later found a job as the assistant CFO for a chain of grocery stores.The law that allows Karen to switch her health insurance plan from her former employer to her new employer to get new health insurance that covers her diabetes is

A) ERISA
B) FMLA
C) COBRA
D) HIPAA

Question 80

The Health Insurance Portability and Accountability Act (HIPAA)requires

A) employers with more than 50 employees provide medical insurance for all full-time employees.
B) employers to offer health coverage to contingent workers if the workers pay 102% of the employer's cost.
C) that most employers offer extended health-care coverage to employees after they leave the organization.
D) that most employees be able to switch their health insurance from one company to another to get new health coverage, regardless of pre-existing conditions.