Question 1

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

Accepted Answer

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 certain groups of employees after they leave the organization.
C)   Widowed or divorced spouses and dependent children of former or current employees need not be offered health care coverage.
D)   Employees who are terminated need not be offered health care coverage. B

Question 2

Employees are generally more satisfied with an employer that provides fewer benefits but does a better job of explaining them.

Accepted Answer

A) True 
 B)False  True

Question 3

Increases in employer expenditures for benefits are growing faster than increases in wages for employees.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is one of the approaches taken by employers offering health care benefits to control and reduce their costs?

Accepted Answer

A)   Decreasing deductibles and copayments
B)   Decreasing high-deductible plans
C)   Increasing employee contributions
D)   Providing unlimited family coverage

Question 5

Linda works in a company that pays for the medical insurances of all its employees. However, every time she visits her physician, she is charged $25. Her medical insurance covers the rest of the fee. This is an example of_____.

Accepted Answer

A)   managed care
B)   consumer-driven health plan
C)   a copayment
D)   an HMO

Question 6

What are the advantages of using paid paid-time-off (PTO) plans?

Accepted Answer

The answer of What are the advantages of using paid...

Question 7

What are the legal regulations regarding early retirement in U.S. companies?

Accepted Answer

The answer of What are the legal regulations regarding early...

Question 8

A problem withproviding flexibility in benefit choice is that_____.

Accepted Answer

A)   it does not cover higher-risk employees
B)   it increases the risk of adverse selection by employees
C)   it is typically discriminatory in nature
D)   it increases attrition rates

Question 9

The Health Insurance Portability and Accountability Act (HIPAA)_____.

Accepted Answer

A)   requires employers with more than 50 employees to provide medical insurance for all full-time employees
B)   requires employers to offer health coverage to contingent workers if the workers pay 50% of the employer's cost
C)   states that employers must offer extended health care coverage to employees even after they leave the organization
D)   allows employees to switch health insurance from one company to another to get new health coverage, regardless of preexisting conditions

Question 10

Research has shown that absenteeism because of illness is lower when employees are not paid for sick time.

Accepted Answer

A) True 
 B)False

Question 11

Glen, a line manager, is informed that his company would be introducing a stock purchase plan for employees. This implies that_____.

Accepted Answer

A)   the employer will provide company stocks to employees as incentives
B)   Glen will be given a few company stocks for free, which he can later sell at the market rate
C)   Glen can buy shares in the company at a discount
D)   Glen would be provided financial counseling on the purchase and sale of stocks

Question 12

Meredith, the general manager of an IT firm, is planning to introduce certain new strategies to control and reduce the health care benefit costs to her company. Which of the following is most likely to be included in her list of strategies?

Accepted Answer

A)   Decreasing copayments
B)   Eliminating high-deductible plans
C)   Switching to consumer-driven health plans
D)   Avoiding managed care

Question 13

Copayments are costs that an insured pays for medical treatment.

Accepted Answer

A) True 
 B)False

Question 14

Karen, a diabetic patient, has quit her job as an internal auditor with a bank and has joined another company as the assistant CFO. Which of the following laws would enable Karen to switch her health insurance plan from her former employer to her new employer?

Accepted Answer

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

Question 15

Which of the following best describes workers' compensation?

Accepted Answer

A)   Compensation provided to workers after retirement
B)   Benefits provided to persons injured on the job
C)   Benefits provided to workers who survive terminal diseases
D)   Total pay package that includes both basic wages and benefits

Question 16

Workers' compensation programs are typically funded_____.

Accepted Answer

A)   at the expense of the employer
B)   at the expense of all the stake holders
C)   by the value-added taxes levied by the federal government on specific goods
D)   by the contributions made to state governments by both employees and employers

Question 17

During times of widespread economic hardship_____.

Accepted Answer

A)   employees who are not actively seeking employment become ineligible for unemployment compensation
B)   the government increases the number of weeks during which workers receive unemployment compensation
C)   employers stop contributing to unemployment compensation funds
D)   weekly payments as part of the unemployment compensation are reduced by half

Question 18

A program that combines sick leave, vacations, and holidays into a total number of hours or days that employees can take off with pay is called a(n) _____ plan.

Accepted Answer

A)   consolidated time off
B)   flexible benefits
C)   accumulated leave
D)   paid time-off

Question 19

In companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall.

Accepted Answer

A) True 
 B)False

Question 20

Cost sharing plans_____.

Accepted Answer

A)   involve employers sharing the costs of government-mandated health insurance plans with the government
B)   require employees to pay a larger proportion of their health benefits costs
C)   require insurance firms to share profits with employers who purchase insurance plans
D)   allow employees to track their benefits balances as and when required

Exam 13: Managing Employee Benefits

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

Employees are generally more satisfied with an employer that provides fewer benefits but does a better job of explaining them.

Increases in employer expenditures for benefits are growing faster than increases in wages for employees.

Which of the following is one of the approaches taken by employers offering health care benefits to control and reduce their costs?

Linda works in a company that pays for the medical insurances of all its employees. However, every time she visits her physician, she is charged $25. Her medical insurance covers the rest of the fee. This is an example of_____.

What are the advantages of using paid paid-time-off (PTO) plans?

What are the legal regulations regarding early retirement in U.S. companies?

A problem withproviding flexibility in benefit choice is that_____.

The Health Insurance Portability and Accountability Act (HIPAA) _____.

Research has shown that absenteeism because of illness is lower when employees are not paid for sick time.

Glen, a line manager, is informed that his company would be introducing a stock purchase plan for employees. This implies that_____.

Meredith, the general manager of an IT firm, is planning to introduce certain new strategies to control and reduce the health care benefit costs to her company. Which of the following is most likely to be included in her list of strategies?

Copayments are costs that an insured pays for medical treatment.

Karen, a diabetic patient, has quit her job as an internal auditor with a bank and has joined another company as the assistant CFO. Which of the following laws would enable Karen to switch her health insurance plan from her former employer to her new employer?

Which of the following best describes workers' compensation?

Workers' compensation programs are typically funded_____.

During times of widespread economic hardship_____.

A program that combines sick leave, vacations, and holidays into a total number of hours or days that employees can take off with pay is called a(n) _____ plan.

In companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall.

Cost sharing plans_____.