Question 1

This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.

Accepted Answer

The answer of This type of consumer driven health care...

Question 2

Under a preferred provider organization (PPO),higher ________ are set for services rendered by nonnetwork providers to discourage participants from using services outside of the network.

Accepted Answer

The answer of Under a preferred provider organization (PPO),higher ________...

Question 3

Jose invested $6,000 in pre-tax income into this healthcare plan,but lost the $780 left in it at the end of the year,because he didn't use it.What type of plan was it?

Accepted Answer

A flexible spending account (FSA) is a pre-tax account that allows an employee to contribute a portion of their salary into the account to pay for qualified out-of-pocket medical expenses. However, any unused funds at the end of the year are forfeited. This loss of funds is often referred to as the "use it or lose it" rule. Therefore, since Jose lost the $780 left in the account, it suggests that he had an FSA.

Question 4

Which one of the following is probably the main reason that health reimbursement accounts (HRAs)are particularly appealing to employees with relatively low salaries or hourly wages?

Accepted Answer

The answer of Which one of the following is probably...

Question 5

________ plans permit employees to defer part of their compensation to the trust of a qualified defined contribution plan.

Accepted Answer

The answer of ________ plans permit employees to defer part...

Question 6

These types of insurance plans are set up to cover things like dental care,vision care,and prescription drugs.

Accepted Answer

Carve-out plans are designed to cover specific types of healthcare services such as dental, vision, and prescription drugs, separate from standard health insurance coverage.

Question 7

Starting January 1,2004,eligible individuals are allowed to establish HSAs under which law?

Accepted Answer

The Medicare Prescription Drug, Improvement and Modernization Act, which was signed into law on December 8, 2003, established HSAs as a tax-advantaged savings option for individuals enrolled in high-deductible health plans (HDHPs).

Question 8

________ are nominal payments an individual makes as a condition of receiving services.

Accepted Answer

The answer of ________ are nominal payments an individual makes...

Question 9

According to ________ Act of 2008,a plan must calculate only one deductible for treatment related substance use disorders and medical or surgical benefits.

Accepted Answer

The answer of According to ________ Act of 2008,a plan...

Question 10

Fixed first-dollar-of-profits,graduated first-dollar-of-profits,and profitability threshold formulas establish ________ contributions.

Accepted Answer

The answer of Fixed first-dollar-of-profits,graduated first-dollar-of-profits,and profitability threshold formulas establish...

Question 11

________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.

Accepted Answer

The answer of ________ accounts allow employees to pay for...

Question 12

IRS guidelines define ________ plans as "defined benefit plans that define benefits for each employee by reference to the amount of the employee's hypothetical account balance."

Accepted Answer

The answer of IRS guidelines define ________ plans as "defined...

Question 13

________ plans refer to pension plans that do not meet at least one of the minimum standard provisions.

Accepted Answer

The answer of ________ plans refer to pension plans that...

Question 14

Mia has Parkinson's disease,but is on an insurance plan that enables her to have the drugs shipped to her house.She is probably on which type of prescription drug plan?

Accepted Answer

The fact that Mia is able to have her drugs shipped to her house suggests that she is likely on a mail order prescription drug plan. This type of plan allows individuals to order their medications and have them delivered directly to their door, which can be especially helpful for those with mobility issues or difficulty getting to a pharmacy.

Question 15

Marty's employer has a prescription drug plan that will only make him pay 20% of cost of his prescription,if he goes only to certain pharmacies.What type of prescription drug plan does he have?

Accepted Answer

Marty has a prescription card program, which allows him to pay only 20% of the cost of his prescription if he uses certain pharmacies.

Question 16

What percentage of Americans experience some form of mental illness at least once during their lifetime?

Accepted Answer

The answer of What percentage of Americans experience some form...

Question 17

This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses,but they will lose the balance not used at year's end.

Accepted Answer

The description given in the question matches with the features of Flexible Spending Accounts (FSAs). Both Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs) allow the balance to roll over to the next year, which is not the case with FSAs. Therefore, the most appropriate choice is option A, flexible spending accounts.

Question 18

________ physicians determine when patients need the care of specialists,and help to control costs by reducing the number of unnecessary visits to specialists.

Accepted Answer

The answer of ________ physicians determine when patients need the...

Question 19

In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians,paying more for the choice?

Accepted Answer

Point-of-service plans allow employees to receive care from providers outside the designated network, but at a higher cost. Fee-for-service plans also allow for this option, but do not typically have a designated network of physicians. Preferred provider organizations (PPOs) also have a network of providers, but typically offer lower costs for staying within the network rather than higher costs for going outside of it. HMOs typically only cover care provided by network physicians.

Question 20

________ refers to an employee's nonforfeitable rights to pension benefits.

Accepted Answer

The answer of ________ refers to an employee's nonforfeitable rights...

Quiz 10: Employer-Sponsored Retirement Plans and Health Insurance Programs