Question 1

Health care plans only cover medical,surgical,and hospital expenses.

Accepted Answer

Health care plans can also cover a variety of other services such as prescription drugs, mental health services, preventive care, and sometimes dental and vision care, depending on the specific plan.

Question 2

Workers' compensation insurance rates depend on the seriousness of the occupations,each state's level of benefits for injuries,and the company's frequency and severity of employee injury.

Accepted Answer

Workers' compensation insurance rates are influenced by the level of risk associated with the occupation, the state's benefits for workplace injuries, and the company's history of employee injuries.

Question 3

Employees do not have to pay taxes on the amounts they are reimbursed under a health reimbursement account.

Accepted Answer

The amounts employees are reimbursed through a health reimbursement account are not taxable income, so employees do not need to pay taxes on those amounts.

Question 4

Under the Family and Medical Leave Act,a convenience store owner with 20 employees is required to provide up to 12 weeks of unpaid leave to an eligible employee for medical reasons.

Accepted Answer

The Family and Medical Leave Act (FMLA) applies to employers with 50 or more employees within a 75-mile radius, not to those with as few as 20 employees.

Question 5

The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.

Accepted Answer

The Family and Medical Leave Act allows employees to substitute any accrued paid leave or vacation time for unpaid leave.

Question 6

To contain health care costs,an employer may increase an employee's deductible amount or co-payments.

Accepted Answer

Increasing the employee's deductible amount or co-payments is a common way for employers to shift some of the health care costs onto the employee and help contain overall costs.

Question 7

Workers' compensation laws provide uniform compensation to disabled workers regardless of the state in which they work.

Accepted Answer

Workers' compensation laws vary from state to state and provide compensation based on the laws in the state where the worker was injured.

Question 8

Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.

Accepted Answer

The Family and Medical Leave Act sets a minimum standard for leave rights, and states cannot provide weaker protections than what is provided by this federal law. States may, however, offer additional and/or more generous leave rights than those provided by the FMLA.

Question 9

As of 2014,firms that employ 50 or more people who work 30 or more hours per week but do not offer them health insurance will have to pay a penalty to the government.

Accepted Answer

This is correct, as per the Affordable Care Act (ACA), also known as Obamacare, employers with 50 or more full-time equivalent employees are required to offer health insurance to their employees or pay a penalty to the government.

Question 10

One of the major problems of workers' compensation programs is that an injured employee faces substantial legal expense to obtain a settlement.

Accepted Answer

Workers' compensation programs are designed to provide benefits to injured employees without the need for litigation, thus minimizing legal expenses.

Question 11

Today,the majority of U.S.employees get health coverage through their employers.

Accepted Answer

According to a 2019 survey by the Kaiser Family Foundation, 157 million people in the U.S. get health insurance through their employers. This represents the majority of U.S. employees.

Question 12

Under the Family and Medical Leave Act,an employee returning to work does not necessarily have to be restored to his or her original job or to an equivalent job.

Accepted Answer

Under the Family and Medical Leave Act (FMLA), an employee returning from leave is entitled to be restored to their original job or to an equivalent job with equivalent pay, benefits, and other terms and conditions of employment.

Question 13

The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to employees and their spouses for 12 months following termination,death,or divorce of an employee.

Accepted Answer

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees and their families to continue their employer's group health coverage for limited periods under certain circumstances, such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. It does not require employers to provide health care coverage for 12 months; instead, it offers the option for individuals to continue coverage at their own expense for a limited period, typically 18 or 36 months depending on the qualifying event.

Question 14

Employers pay a fixed annual fee to a health maintenance organization to cover a majority of their employees' medical costs.

Accepted Answer

This is a characteristic of a typical HMO plan, where employers pay a fixed fee for employees' healthcare services.

Question 15

A preferred provider organization (PPO)is a group of physicians who establish an organization that guarantees the quality of health care provided by a health maintenance organization (HMO).

Accepted Answer

A PPO is a type of managed care organization that contracts with medical providers, such as doctors and hospitals, to create a network of participating providers. PPOs typically offer more flexibility and choice in terms of selecting providers compared to HMOs, which have more stringent requirements for using only providers within their network. PPOs do not guarantee the quality of care provided by HMOs or any other type of health care organization.

Question 16

Workers' compensation programs serve to prevent financial disaster to employees who are injured or become ill through their work.

Accepted Answer

Workers' compensation programs provide benefits to injured or ill workers, including medical expenses and lost wages, in order to prevent financial hardship.

Question 17

Employee costs for medical services provided by a health maintenance organization (HMO)vary according to the type of service and how often the employee needs it.

Accepted Answer

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Question 18

Unlike preferred provider organizations (PPOs),where employees may have little choice in the doctor they see,health maintenance organizations (HMOs)allow employees to select their doctor of choice from a list of physicians.

Accepted Answer

In a PPO, employees typically have more flexibility in choosing their healthcare providers, while HMOs require members to select from a network of approved doctors.

Question 19

Workers eligible for unemployment benefits must submit an application for unemployment compensation with their state employment agencies,register for available work,and be willing to accept any suitable employment that may be offered to them.

Accepted Answer

Eligible workers must meet these requirements to receive unemployment benefits.

Question 20

If an employee takes a leave of absence under the Family and Medical Leave Act,the employer must continue the employee's medical benefits for the duration of the leave.

Accepted Answer

The Family and Medical Leave Act (FMLA) requires employers to continue the employee's medical benefits during their leave of absence.

Quiz 11: Employee Benefits