Chapter.6 Employee Benefits Verified Test Bank

Chapter 6 Test Bank

Twenty /Questions. Twenty Multiple Choice Questions. Ten Matching Exercise

/Questions.

1. Women comprise 50% of the healthcare workforce. p. 144 80%

2. State unemployment tax rates vary, depending on the experience rating of an employer, which means that states review how often an employer has used the unemployment program in the past. p. 149

3. Unemployment insurance and workmen’s compensation are examples of voluntary employee benefits. p. 145 mandatory

4. Social security benefits are funded by a flat payroll tax on employers only. p. 146 employees also

5. Employers who offer health insurance must comply with the Consolidated Omnibus Budget Reconciliation Act of 1986, which requires employers to extend employees’ health coverage for up to 2 years after a person leaves as a result of termination, after loss of full-time employee status, or upon the employee’s death (spouse needs coverage) p. 150 three years

6. Voluntary benefits provided by employers include paid time off and retirement plans. p. 150

7. The Patient Protection and Affordability Care Act of 2010 place restrictions on health insurance companies imposing lifetime monetary caps on health insurance reimbursement. p. 150

8. Catastrophic health insurance policies cover unusual illnesses with a low deductible and have lifetime reimbursement caps. p. 151 high deductibles

9. A managed care plan focuses on cost containment of health services. p. 151

10. The oldest type of managed care organization is the preferred provider organization. p. 151 HMO

11. Medigap policies provide additional insurance coverage for Medicaid patients. p.151 Medicare

12. A network model is an example of a Point of Service plan. p. 151 HMO

13. The most common consumer driven health plan is a HRAs (health reimbursement arrangements) and FSAs (flexible spending accounts). p. 153 HRAs and HSAs.

14. The Health reimbursement arrangement (HRA) is portable which means it can be transferred from job to job. p. 153 HSA.

15. Flexible spending accounts (FSAs) provide employees with the option of setting aside pretax income to pay for out of pocket medical expenses p. 153

16. Term life insurance is the most expensive type of life insurance offered because there is no cash value attached to the policy. p. 154 cheapest

17. Whole-life insurance provides permanent protection to the dependents because it accrues a cash value. p. 154

18.Employee benefits survey (EBS) targets approximately 6000 private and government employers to determine what type of benefits are commonly provided. 158

19. The Pension Benefit Guarantee Corporation is a federal agency that insures retirement benefits and guarantees a basic benefit to retirees if an employer has financial difficulty. p. 156

20. Cafeteria plans are employee benefits plans that provide employees with flexibility who may have different benefit needs. p. 158

Twenty Multiple Choice Questions

1. Which statement is about employee benefits?
2. They can be used as a recruitment tool.
3. There are mandatory and voluntary benefits offered by employers.
4. A and B p. 145
5. Most employees do not need benefits.
6. Another name for the Social Security Act is:
7. Supplemental Security Income
8. Federal Unemployment Tax
9. Old Age, Survivors, and Disability Insurance p. 146
10. None are correct.
11. Which statement is ?
12. Nearly 75% of U.S. employees are eligible for Social Security
13. Nearly 90% of U.s. employees are eligible for Social Security. p. 146
14. As of this writing, age 62 is the age you can collect full retirement benefits from Social Security.
15. Social Security benefits are funded by a floating payroll tax.
16. Worker’s compensation is administered by:
17. The federal government
18. The local government
19. The state government p. 149
20. Private systems
21. Experience ratings are applied to unemployment and worker’s compensation because:
22. The ratings paid by the employers vary based on the number of times the employer has used these programs.
23. It prevents employers from using the system
24. A and B . 149
25. The higher the experience rating, the lower the premiums will be for the employers.
26. No-fault liability or no-fault insurance means:
27. If an employer admit it is not the fault of the employer, they receive reduced rates.
28. If the employee admits it is the fault of the employee for falling down at work, they receive a larger benefit from worker’s compensation.
29. There are larger legal fees because no one admits they were wrong.
30. None are correct p. 149
31. The 2008 amendment to the Family, Medical, Leave Act of 1993, offers:
32. 26 work weeks of leave to care for a spouse or close family member who is a member of the armed forces. p. 149
33. 52 work weeks of leave to care for a spouse only who is a member of the armed forces.
34. 26 work weeks of leave to care for a spouse only who is a member of the armed forces.
35. None are correct.
36. Comprehensive health insurance policies provide the following benefits:
37. Prescription drugs
38. Surgery
39. Laboratory testing
40. All are benefits p. 150
41. Which statements are about managed care plans?
42. There is no copayment
43. There is no deductible
44. They focus on cost containment .
45. All are correct p. 151
46. Which statements are about preferred provider organizations (PPOs)?
47. Members pay a discounted fee
48. They do not have a gatekeeper
49. They do not need a referral to see a specialist
50. All are correct p. 152
51. Which is about Point of Service (POS) plans?
52. They represent a blend of PPOs and PSOs.
53. They represent a blend of HMOs and PPOs. p. 152
54. They require a gatekeeper model for specialist referrals.
55. They cannot see an out of network provider.
56. What is a disadvantage of a Health Reimbursement Account?
57. It has no portability p. 152-153
58. it is funded by the employee
59. it is pretax dollars allocated to the account
60. Why was long term care insurance developed?
61. With the increase in the life expectancy in the U.S., more people will develop chronic diseases resulting in the need for long term care which is very expensive.
62. Medicare does not pay for long term care.
63. Traditional health insurance policies do not pay for long term care.
64. All are correct p. 153
65. Why are companies offering childcare and eldercare?
66. Demographics indicate that there are parents working that require childcare assistance.
67. Statistics indicate that U.S. companies lose $33.6 billion annually due to employee’s aging relatives’ issues.
68. These services can be considered recruitment tools to attract quality employees.
69. All are correct p. 156-57
70. Why is flexible work schedules a recruiting tool for the health care industry?
71. There is a disproportionate % of females in the healthcare industry that are main caregivers, so this type of schedule provides flexibility.
72. Employees who are on a flexible work schedule are often paid less.
73. A recent employee survey indicated that 72% quit their jobs because the inflexible hours were not compatible with their family needs.
74. A and C p. 157
75. What type of employee benefits are expected by job candidates?
76. Health insurance benefits
77. Dental insurance benefits
78. Vision insurance benefits
79. All are correct p. 145-146
80. When a company decides to implement a cafeteria plan, they may hire a third-party administrator such as _______---:
81. Pharmacy benefit manager
82. Cafeteria specialist
83. Eflexgroup p. 158
84. Ecafeteriagroup.com
85. According to the Employee Benefits Survey, which statements are correct about the type of benefits offered by organizations?
86. 91% of full-time workers in private industry were offered vacation benefits
87. 75% of full-time workers were offered paid sick leave.
88. 90% of government workers had access to retirement benefits
89. All are correct p. 158
90. Why would companies offer education reimbursement?
91. If the program increase the employee’s skill sets, benefiting the organization.
92. It can be a motivational tool for employees and job candidates
93. Health care organizations will encourage LPNs to attain their RN degree.
94. All are correct statements p. 157
95. . Which statement is accurate about the Village Movement?
96. A network that was organized to support the elderly in their homes to allow for their independence.
97. This network was organized by a local non-profit organization in Massachusetts
98. As a result of this initiative, similar networks have been developed around the country.
99. All are correct. X p. 154

Ten Matching Exercise

A ____________are employee benefits plans that provide flexibility to employees with

different benefits needs..

B. A____________ is an alternative to a typical 40-hour, 9-to-5 work week.

C. Employees accrue _____________which functions in the same manner as paid vacation and sick leave, but the employee does not inform the organization why he or she is taking time off.

D. A ____________is an individual account for each employee, which

specifies the size of the investment into the account.

E. ____________enables employees to move retirement funds

if they move to another job.

F. _______________occurs when an employee leaves an organization prior to retirement and is entitled to receive the funds that were accruing in his or her retirement or pension fund.

G ___________________ , which are tax-advantaged plans with high deductible coverage—sometimes called high deductible health plans

H. __________________provides permanent protection to the dependents. The policy

accrues a cash value.

I. Social security, unemployment insurance, worker’s compensation and unpaid family and medical leave are all examples of ________________.

J. Managed care organizations that focus on quality of care and _________________.