TEST - GBA 1 - PRACTICE EXAM: DIRECTING BENEFITS
PROGRAMS PART 1
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? -
ANSWER-Avoidance, retention, insurance and control
Which of the following statements regarding prescription drug rebates is
correct? - ANSWER-A rebate occurs when there is an agreement between a
pharmacy benefit manager and a drug manufacturer.
There are several methods for evaluating health system performance.
Accreditation by the NCQA is an example of which of the following methods? -
ANSWER-Audit performance evaluation
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
ANSWER-Evergreen election
The benefit-oriented philosophy of designing employee benefits tends to focus
on: - ANSWER-Needs of employees
The amount of covered medical expenses that a participant must incur before
any medical benefits for non-preventive care services or treatment become
payable under a plan is known as the: - ANSWER-Deductible
, The Supreme Court decision in National Federation of Independent Business v.
Sebelius had a profound effect on the implementation of the Affordable Care
Act (ACA). Which of the following statements summarizes the impact of this
case? - ANSWER-The decision made Medicare expansion by the states voluntary.
The Affordable Care Act (ACA) aimed to make health insurance more affordable
by providing tax credits to individuals ineligible for other affordable coverage
and with income between which of the following limits: - ANSWER-100% and
400% of the federal poverty line.
The concept designed to make victims of losses whole again reflects the
principle of: - ANSWER-Indemnification
A mechanism by which one attempts either to prevent or reduce the probability
of a loss taking place or to reduce the severity of the loss if it does take place is
referred to as: - ANSWER-Control
The Affordable Care Act (ACA), in general, defined a full-time employee as one
employed on average at least how many hours per week? - ANSWER-30
Dental treatments are placed into ten professional treatment categories. A
restorative treatment is: - ANSWER-
If a cafeteria plan fails to pass the required nondiscrimination testing, then: -
ANSWER-The highly compensated and key employees are taxed based on the
value of their benefits.
PROGRAMS PART 1
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? -
ANSWER-Avoidance, retention, insurance and control
Which of the following statements regarding prescription drug rebates is
correct? - ANSWER-A rebate occurs when there is an agreement between a
pharmacy benefit manager and a drug manufacturer.
There are several methods for evaluating health system performance.
Accreditation by the NCQA is an example of which of the following methods? -
ANSWER-Audit performance evaluation
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
ANSWER-Evergreen election
The benefit-oriented philosophy of designing employee benefits tends to focus
on: - ANSWER-Needs of employees
The amount of covered medical expenses that a participant must incur before
any medical benefits for non-preventive care services or treatment become
payable under a plan is known as the: - ANSWER-Deductible
, The Supreme Court decision in National Federation of Independent Business v.
Sebelius had a profound effect on the implementation of the Affordable Care
Act (ACA). Which of the following statements summarizes the impact of this
case? - ANSWER-The decision made Medicare expansion by the states voluntary.
The Affordable Care Act (ACA) aimed to make health insurance more affordable
by providing tax credits to individuals ineligible for other affordable coverage
and with income between which of the following limits: - ANSWER-100% and
400% of the federal poverty line.
The concept designed to make victims of losses whole again reflects the
principle of: - ANSWER-Indemnification
A mechanism by which one attempts either to prevent or reduce the probability
of a loss taking place or to reduce the severity of the loss if it does take place is
referred to as: - ANSWER-Control
The Affordable Care Act (ACA), in general, defined a full-time employee as one
employed on average at least how many hours per week? - ANSWER-30
Dental treatments are placed into ten professional treatment categories. A
restorative treatment is: - ANSWER-
If a cafeteria plan fails to pass the required nondiscrimination testing, then: -
ANSWER-The highly compensated and key employees are taxed based on the
value of their benefits.
