Deck 13: Employee Benefits

Question 1

At current rates,Old Age,Survivors,and Disability Insurance will exhaust its funds in ______.

A) 2027
B) 2056
C) never
D) 2034

Answer 1

D

Question 2

Once a benefit becomes part of the employee's compensation package,it is ______ to delete that benefit in the future.

A) very easy
B) very hard
C) essential
D) expected

Answer 2

B

Question 3

Michaela and Carolyn are discussing changes to the benefits program at their organization.Michaela would like to see the organization provide more lifestyle benefits such a dog day care.Carolyn is pushing for more dental and disability coverage.What aspect of providing a benefits program are Michaela and Carolyn discussing?

A) amount
B) mix
C) flexibility
D) vesting

Answer 3

B

Question 4

Employee benefits average ______ % of total employee compensation cost in U.S.organizations.

A) 18
B) 32
C) 45
D) 50

Question 5

______ benefits are the type of benefits that are required by law.

A) Statutory
B) Domestic
C) Cultural
D) Structural

Question 6

______ provides basic medical benefits,but it was not designed to be a full-coverage program.

A) Welfare
B) Medicare
C) Social Security
D) Unemployment Insurance

Question 7

According to expectancy theory,______ is important in a benefits package because it gives employees the benefits that are of value to them.

A) rigidity
B) flexibility
C) experience
D) rating

Question 8

______ provide an incentive to employees to continue working for an organization because they feel as if they are being cared for by the organization.

A) Contributions
B) Ratings
C) Benefits
D) Rankings

Question 9

Individuals become eligible for ______ at the same time as their eligibility for Social Security retirement begins.

A) Medicare
B) Welfare
C) Cultural benefits
D) Domestic benefits

Question 10

Obiajulu and her employer both pay 1.45% of Obiajulu's earnings into ______.Obiajulu's portion is withheld from her paycheck.

A) Social Security
B) Medicare
C) unemployment insurance
D) retirement

Question 11

In examining her organization's benefits package,Petra has determined that the organization can provide a 40% premium to direct compensation for the cost of benefits.What aspect of providing a benefits program is Petra considering?

A) amount
B) mix
C) flexibility
D) vesting

Question 12

______ is an insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness.

A) Medicare
B) Workers' compensation
C) Unemployment Insurance
D) Social Security

Question 13

Providing ______ can reduce the tax burden on both the organization and the individual.

A) bonuses
B) benefits
C) merit pay
D) commissions

Question 14

By far the largest of the U.S.statutory programs,in both size and cost to employers (and employees),are ______.

A) Social Security and Medicare
B) Social Security and Medicaid
C) Medicare and Medicaid
D) Medicare and the ACA

Question 15

While most employees take a job because of the advertised level of pay,many stay with a job because of the ______ associated with it.

A) benefits package
B) variable pay
C) experience rating
D) contribution plan

Question 16

An individual must earn ______ "credits" in their lifetime in order to become eligible for Social Security retirement.

A) 40
B) 80
C) 20
D) 75

Question 17

Whitney earns about $100,000 a year.She and her employer both pay 6.2% of Whitney's earnings into ______.Whitney's portion is withheld from her paycheck.

A) Social Security
B) Medicare
C) unemployment insurance
D) retirement

Question 18

Sasha's organization offers employees a choice of different benefits.Since Sasha has two children,she selected childcare vouchers and sick child coverage from the list of benefits.The benefits managers at Sasha's organization seem to have considered the importance of ______ in providing benefits programs.

A) amount
B) mix
C) flexibility
D) vesting

Question 19

The Social Security and Medicare group of programs cost more than ______% of all money the federal government received in 2016.

A) 10
B) 21
C) 34
D) 46

Question 20

Old-Age,Survivors,and Disability Insurance is the formal name for what is generally called ______.

A) Welfare
B) Medicare
C) Social Security
D) Medicaid

Question 21

The ______ is a law that requires employers to offer to maintain health insurance for a period of time on individuals who leave their employment.

A) Family and Medical Leave Act
B) Patient Protection and Affordable Care Act
C) Consolidated Omnibus Budget Reconciliation Act
D) Social Security Act

Question 22

Normally,the maximum period of time for which an individual can receive unemployment benefits is ______ weeks.

A) 2
B) 13
C) 26
D) 99

Question 23

Upon an employee's return from ______ leave,the employee must be restored to the original job or one that is equivalent in pay,benefits,and other terms and conditions of employment.

A) Family and Medical Leave Act
B) Patient Protection and Affordable Care Act
C) Unemployment
D) Social Security

Question 24

Due to a recession,Danai was laid off by her organization.To avoid having Danai and other laid off workers stop spending money and thus deepen the recession,______ will help them maintain some income.

A) Social Security
B) Medicare
C) unemployment insurance
D) worker's compensation

Question 25

Paige was working on a graphic design project for her employer when she cut her hand with scissors and needed stitches.Her doctor's visit to get the stitches was covered under ______.

A) Social Security
B) Medicare
C) unemployment insurance
D) worker's compensation

Question 26

Matthew has just had a foster child placed in his care.He has requested unpaid leave to care for the child.Matthew will be able to take this leave and return to his original job (or an equivalent one)under ______.

A) Social Security
B) the Affordable Care Act
C) the Family Medical Leave Act
D) Medicare

Question 27

Workers' compensation programs are managed by ______.

A) the federal government
B) county governments
C) state governments
D) municipal governments

Question 28

The Consolidated Omnibus Budget Reconciliation Act applies to companies with ______ or more full-time equivalent employees.

A) 5
B) 50
C) 20
D) 80

Question 29

The Patient Protection and Affordable Care Act mandated that all employers with more than ______ employees provide their full-time employees with healthcare coverage or face penalties for failing to do so.

A) 10
B) 30
C) 50
D) 100

Question 30

______ is defined as an illness,injury,impairment,or physical or mental condition that involves either inpatient care or continuing care for at least 3 consecutive days.

A) Minor health condition
B) Serious health condition
C) Social health condition
D) Leave-eligible health condition

Question 31

Workers' compensation is ______ insurance,which means that no matter who was at fault in an accident- or illness-related situation,the insurance will be paid out to the party harmed.

A) at-fault
B) all-fault
C) no-fault
D) fault-fault

Question 32

Yusuf has requested unpaid leave to care for his wife.She was injured while serving in the Army in Afghanistan.Yusuf will be able to take this leave and return to his original job (or an equivalent one)under ______.

A) Social Security
B) the Affordable Care Act
C) the Family Medical Leave Act
D) Medicare

Question 33

According to the Patient Protection and Affordable Care Act of 2010,health insurance plans should be "affordable," which means the premium will not exceed ______% of the employee's household income.

A) 5
B) 9.5
C) 12.5
D) 15

Question 34

______ of the cost of workers' compensation insurance is paid for by employees.

A) All
B) Some
C) Most
D) None

Question 35

______ provides workers who lose their jobs with continuing subsistence payments from their state for a specified period of time.

A) Welfare
B) Social Security
C) Medicare
D) Unemployment Insurance

Question 36

______ allows health insurance coverage after termination of employment for at least 18 months and for as many as 36 months in some limited cases.

A) Family and Medical Leave Act
B) Patient Protection and Affordable Care Act
C) Consolidated Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act

Question 37

Unemployment Insurance allows unemployed workers to continue to have at least some ______ power.

A) retirement
B) medical
C) purchasing
D) commission

Question 38

______ is a measure of how often claims are made against an insurance policy.

A) Utilization analysis
B) Variable analysis
C) Experience rating
D) Merit analysis

Question 39

Under the______,employees not covered by a healthcare plan at work are required to go to the state health exchange where they can purchase individual coverage.

A) Family and Medical Leave Act
B) Patient Protection and Affordable Care Act
C) Unemployment Act
D) Social Security Act

Question 40

Siobhan recently quit her job at Acme Global.Under ______,Siobhan can continue to pay for her group health insurance through Acme Global to avoid having a gap in her coverage.

A) Consolidated Omnibus Budget Reconciliation Act of 1985
B) Health Insurance Portability and Accountability Act of 1996
C) Employee Retirement Income Security Act of 1974
D) Social Security

Question 41

______ are a hybrid between traditional fee-for-service plans and health maintenance organizations.

A) Primary care physicians
B) Preferred provider organizations
C) Health maintenance organizations
D) Unemployment insurers

Question 42

______ act like health maintenance organizations in that they prefer that you have a primary care physician within their medical network and that you go to that primary care physician before going elsewhere for medical care.

A) Primary care physicians
B) Unemployment insurers
C) Preferred provider organizations
D) Worker's compensation plans

Question 43

Managed care plans generally require that the employee and their family use doctors and facilities that are in the managed care ______.

A) vestment
B) outwork
C) network
D) alliance

Question 44

Isis quit her job at one organization with a group health insurance plan and was hired at another organization with a group insurance plan.According to the ______,Isis's new employer is required to provide her with the opportunity to participate in the plan.

A) Consolidated Omnibus Budget Reconciliation Act
B) Health Insurance Portability and Accountability Act
C) Employee Retirement Income Security Act
D) Social Security Act

Question 45

The ______ rule of Health Insurance Portability and Accountability Act of 1996 requires that covered firms take reasonable steps to limit the use or disclosure of,and requests for,protected health information.

A) openness
B) privacy
C) open disclosure
D) health information

Question 46

Federal rules on health savings accounts and medical savings accounts require that employees who have these accounts also participate in something called a ______.

A) high-deductible health plan
B) preferred provider organization
C) health maintenance organization
D) worker's compensation plan

Question 47

Any organization with a health maintenance organization plan should do a ______ to learn if any savings may be recouped from the HMO due to fewer than anticipated doctor visits.

A) employment analysis
B) use analysis
C) consumption analysis
D) utilization analysis

Question 48

The ______ rule of Health Insurance Portability and Accountability Act of 1996 requires covered firms to have appropriate administrative,technical,and physical safeguards to protect the privacy of protected health information for individual employees.

A) pay
B) privacy
C) security
D) disclosure

Question 49

A ______ is a review of the cost of a program and comparison of program costs with the rate of the program's usage by the members of the company.

A) ranking review
B) compensation analysis
C) vesting analysis
D) utilization analysis

Question 50

The ______ requires that if a new employee had group health insurance at a previous employer and the new employer has healthcare coverage for their employees,the new employer is required to provide the new employee with the opportunity to participate in their health insurance plan.

A) Family and Medical Leave Act
B) Patient Protection and Affordable Care Act
C) Consolidated Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act

Question 51

______ provides for a maximum amount of time beyond which the employee will have unfettered access to their retirement funds,both employee contributions and employer contributions.

A) Vesting
B) Ranking
C) Rating
D) Utilization

Question 52

______ applies to employers who provide a group retirement plan and/or group health and welfare plans,including medical,dental,vision,life insurance,and others.

A) Employee Retirement Income Security Act
B) Unemployment Insurance
C) Consolidated Omnibus Budget Reconciliation Act
D) Social Security

Question 53

Laszlo's organization provides group health insurance that covers a set percentage of fees for medical services such as doctors or in-patient care.It allows him to go to any doctor or provider.His group health insurance is a ______.

A) fee-for-service plan
B) health maintenance organization
C) preferred provider organization
D) health savings account service

Question 54

______ allow the employer and employee to fund an account from which the employee can pay medical expenses each year with pretax dollars.

A) Health compensation accounts
B) Health savings accounts
C) Unemployment insurers
D) Preferred provider organizations

Question 55

Tamera's organization provides group health insurance.She has a primary care physician who is her first point of contact for all preventative care and routine medical situations.Her primary care physician can provide her with referrals to specialists,if needed.However,to be covered,the specialists must be within her plan's network.Her group health insurance is a ______.

A) fee-for-service plan
B) health maintenance organization
C) preferred provider organization
D) health savings account service

Question 56

A ______ is a major medical insurance plan that protects against catastrophic health-care costs and in most cases is paid for by the employer.

A) high-deductible health plan
B) health maintenance organization
C) worker's compensation
D) preferred provider organization

Question 57

In a health maintenance organization,the ______ will be the first point of contact for all preventive care and in any routine medical situation except emergencies.

A) case manager
B) network administrator
C) insurance carrier
D) primary care physician

Question 58

Macy's organization provides group health insurance to its employees.According to the ______,the organization must issue a "Summary Plan Description" that describes the insurance plan and how it works in plain language.

A) Consolidated Omnibus Budget Reconciliation Act of 1985
B) Health Insurance Portability and Accountability Act of 1996
C) Employee Retirement Income Security Act of 1974
D) Social Security

Question 59

A provision of Employee Retirement Income Security Act is the creation of ______.

A) the Consolidated Omnibus Budget Reconciliation Program
B) Social Security
C) Medicare
D) the Pension Benefit Guarantee Corporation

Question 60

A ______ is a health care plan that provides both health maintenance services and medical care as part of the plan.

A) preferred provider organization
B) traditional health care plan
C) Social Security plan
D) health maintenance organization

Question 61

The ______ benefit plans allow employees to choose exactly the set of benefits that they desire,within specified monetary limitations.

A) full-choice
B) less-choice
C) non-choice
D) rigid-choice

Question 62

While not required,many U.S.employers provide employees with some paid holidays,sick leave,and/or vacation time.These voluntary benefits fall under the category of ______.

A) paid time off
B) group health insurance
C) employee services
D) retirement plans

Question 63

Many organizations will provide ______ insurance policies to provide for survivors of an employee who dies while employed by the company.

A) individual term life
B) Social Security
C) group term life
D) workers' compensation

Question 64

______ benefit plans provide employees with several basic options for benefits packages from which they can select the one that best matches their life and family circumstances.

A) Singular
B) Vesting
C) Modular
D) Utilization

Question 65

The most well-known retirement plan in U.S.companies today is the ______.

A) Variable Pay
B) Vesting
C) Utilization analysis
D) 401(k)

Question 66

Rachel's organization offers flexible benefits.Rachel receives some of the same benefits as everyone else in the organization,such as health,dental,and life insurance.However,Rachel was also able to add tuition reimbursement and elder care assistance to her benefits package.Rachel's organization is offering a ______ flexible benefits plan.

A) modular
B) core-plus
C) full-choice
D) defined benefit

Question 67

Erin knows exactly what benefits she will receive when she retires.She has worked for the same organization for 20 years and will receive 65% of the average of her two highest years of pay.Erin's retirement plan is a ______ plan.

A) defined benefit
B) defined contribution
C) vesting
D) experience

Question 68

Nubia's organization provides group health insurance.The plan covers "major medical" costs for each employee in any given year that total more than $10,000.Her group health insurance is a ______.

A) fee-for-service plan
B) health maintenance organization
C) high-deductible health plan
D) health savings account service

Question 69

Chelsea's organization offers flexible benefits.During the open enrollment period,Chelsea can choose any benefits she wants.She selects several benefits,including elder care coverage to help her take care of her mother and extra dental coverage because she knows her daughter will need braces this year.Chelsea's organization is offering a ______ flexible benefits plan.

A) modular
B) core-plus
C) full-choice
D) defined benefit

Question 70

In a ______ plan,there is a base set of benefits,called the core,that are provided to everyone,and then employees are allowed to choose other options to meet personal needs and desires.

A) core-minus
B) core-plus
C) core-less
D) core-flex

Question 71

In a ______,the amount received upon retirement will depend on the success of the investment of the retirement funds over the years.

A) utilization analysis
B) vesting
C) defined contribution plan
D) defined benefit plan

Question 72

Under a ______ the employee does not know what their retirement benefit will be.

A) utilization analysis
B) defined contribution plan
C) vesting plan
D) defined benefit plan

Question 73

A ______ provides the retiree with a specific amount and type of benefits that will be available when the individual retires.

A) defined benefit plan
B) undefined benefit plan
C) defined contribution plan
D) undefined contribution plan

Question 74

______ benefits include a group of options such as vacation time/annual leave,severance pay,personal time off,sick days,and holidays.

A) Workers' compensation
B) Utilization analysis
C) Vesting
D) Paid time off

Question 75

Myra's organization provides group health insurance.Under her coverage,Myra can see any physician or go to any medical facility.However,if she goes to a physician or facility outside those identified by her plan,she will have to pay a larger percentage of the costs.Her group health insurance is a ______.

A) fee-for-service plan
B) health maintenance organization
C) preferred provider organization
D) health savings account service

Question 76

Alexander's organization offers flexible benefits.The plan has five packages from which Alexander can choose.His organization is offering a ______ flexible benefits plan.

A) modular
B) core-plus
C) full-choice
D) defined benefit

Question 77

Under a ______ the retiree knows exactly what they are going to receive in benefits when they retire.

A) undefined benefit plan
B) undefined contribution plan
C) defined benefit plan
D) defined contribution plan

Question 78

A ______ identifies only the amount of funds that will go into a retirement account,not what the employee will receive upon retirement.

A) defined benefit plan
B) utilization analysis
C) vesting
D) defined contribution plan

Question 79

Michel puts $17,500 into his 401(k)retirement plan each year.This type of retirement plan is a ______.

A) defined benefit
B) defined contribution
C) vesting
D) experience

Question 80

Isobel's organization offers several sets of benefits.One set would appeal to young single employees because it provides more paid time off for personal activities and no reimbursements for childcare expenses.Another set would likely appeal parents with young children because it does provide childcare reimbursements and other benefits important to parents such as life insurance.Isobel's organization is offering a ______ flexible benefits plan.

A) modular
B) core-plus
C) full-choice
D) defined benefit