Question 1

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 2

________ 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 3

This is the condition for which medical advice,diagnosis,care,or treatment was received or recommended during a designated period prior to coverage.

Accepted Answer

A) preadmission certification 
B) preexisting condition 
C) second opinions 
D) exclusion criteria

Question 4

According to the provisions in her health insurance plan with Get Well Insurance,Ursula's coinsurance payment would be $50 if she goes to Dr.Kitt but will only be $25 if she goes to Dr.Matthew.She probably belongs to what type of insurance plan?

Accepted Answer

A) point-of-service plan (POS) 
B) preferred provider organization (PPO) 
C) health maintenance organization (HMO) 
D) fee-for-service plan

Question 5

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 6

Which of the following types of insurance plans are set up to cover things like dental care,vision care,and prescription drugs?

Accepted Answer

A) flexible savings plans 
B) flexible services accounts 
C) carve-out plans 
D) health services accounts

Question 7

Compare and contrast commercial insurance (fee-for-service)and self-funded insurance.

Accepted Answer

The answer of Compare and contrast commercial insurance (fee-for-service)and self-funded...

Question 8

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

Accepted Answer

A) 50% 
B) 45% 
C) 20% 
D) 10%

Question 9

What type of pension plan commonly includes profit-sharing plans,stock bonus plans,and employee stock ownership plans?

Accepted Answer

A) defined benefit 
B) defined contribution 
C) deferred contribution 
D) deferred benefit

Question 10

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

A) flexible spending accounts 
B) health reimbursement arrangements 
C) health savings accounts 
D) flexible savings accounts

Question 11

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) health savings account 
B) flexible spending account 
C) health reimbursement arrangement 
D) fee-for service plan

Question 12

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

A) prescription reimbursement plan 
B) medical reimbursement plan 
C) mail order prescription drug plan 
D) prescription card program

Question 13

Your company asked you to come up with a contribution plan that invests the contributions in company securities and distributes the payouts in stock instead of cash.Which plan would you suggest they use?

Accepted Answer

A) employee stock option plan (ESOP) 
B) 401(k)s 
C) profit sharing plan 
D) point-of-service plan (POS)

Question 14

Which of the following types of insurance plans provides protection against health care expenses in the form of cash benefits paid to the insured or directly to the provider after the services are rendered?

Accepted Answer

A) point-of-service plans 
B) managed care plans 
C) fee-for-service plans 
D) health savings accounts

Question 15

Which of the following represents the most approximate percentage for private sector employees who have access to at least one employer-sponsored health insurance program in 2010?

Accepted Answer

A) 20% 
B) 50% 
C) 70% 
D) 90%

Question 16

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

A) fee-for-service plans 
B) preferred provider organizations 
C) HMOs 
D) point-of-service plans

Question 17

What is coinsurance?

Accepted Answer

A) when both parents have employer-sponsored insurance coverage for their children 
B) two insurance companies combine to offer a group policy to an employer 
C) the amount an employee has to pay out-of-pocket before the insurance kicks in 
D) the percentage of covered expenses paid by the insured

Question 18

What type of retirement plan is a 401(k)?

Accepted Answer

A) defined contribution 
B) defined benefit 
C) qualified benefit 
D) nonqualified benefit

Question 19

Distinguish between qualified and nonqualified retirement plans.

Accepted Answer

The answer of Distinguish between qualified and nonqualified retirement plans....

Question 20

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...

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