GBA 2 Practice Test Questions
Exam Questions with 100% Correct
Answers | Updated 2026 | Guaranteed
success
Mr. Smith is insured in his company's group life insurance plan. The plan is noncontributory and meets
the requirements of Internal Revenue Code Section 79. How much group life insurance can be provided
to Mr. Smith without him incurring a federal income tax liability on the value of his employer's
contributions? - CORRECT ANSWERS 50,000
Developed countries other than the U.S. spend a much lower proportion of their gross domestic product
on health care and enjoy better quality than the U.S. does. It is widely believed by policy makers that
one major reason for this phenomenon is because: - CORRECT ANSWERS The health Care
systems in such countries are built on a strong primary care base.
"Desktop medicine" is a fully integrated approach using information technology whose primary goal is
to: - CORRECT ANSWERS Help track patients through their plan of care
According to the RAND Health Insurance Experiment, which variable has the greatest power in
explaining health expenditures? - CORRECT ANSWERS Prior Utilization
The practice of hospitals paid based on billed charges by commercial insurers and allowable costs by
Medicare ended primarily because: - CORRECT ANSWERS Managed care plans introduced
selective contracting into the market.
A medical group is paid fee-for-service up to a withhold amount. The group is paid 75 percent at the
time of service and the remaining 25 percent is paid if the managed care plan: - CORRECT ANSWERS
Is able to cover its overall claim costs.
,What is the waiting period for Social Security Disability Income (SSDI) benefits? - CORRECT ANSWERS
five consecutive months
Reference pricing used by some managed care health plans: - CORRECT ANSWERS Is one
method of giving subscribers an incentive to use lower-cost but quality providers.
Which of the following is the approximate percentage of the U.S. population covered in the specified
U.S. healthcare scheme? - CORRECT ANSWERS 15% through the Medicare Program
Using private exchanges, employers have begun to implement the defined contribution model for
medical benefits for which group of individuals? - CORRECT ANSWERS Retirees and their
eligible dependents
Which of the following statements regarding Small Business Health Options Program (SHOP) exchanges
is correct? - CORRECT ANSWERS SHOP exchanges are marketplaces that are essentially
online portals which enable small employers to select from a range of fully insured plans and
contribution arrangements for their employees.
Which of the following statements best describes the Affordable Care Act (ACA) approach to the
problem of involuntary out-of-network emergency health care? - CORRECT ANSWERS Plans
cannot impose higher copayments or coinsurance for out-of-network emergency room care and balance
billing is still allowed within certain parameters; these requirements do not apply to grandfathered
plans.
A provision in some group life insurance plans that provides for the payment of all or part of the death
benefit in the event of the insured's terminal illness is called: - CORRECT ANSWERS
Accelerated death benefits
What is the provision in the Part D Medicare law that gives a significant benefit to pharmaceutical
companies? - CORRECT ANSWERS The law prohibits the government from using its
purchasing power to negotiate widespread discounts with drug plans.
, Which of the following measures of cost is generally used by analysts when they are examining the
impact of insurance premiums on employees' choice of health insurance plans? - CORRECT ANSWERS
The employee's out-of-pocket price
Which of the following statements regarding recognition as a patient-centered medical home (PCMH) is
correct? - CORRECT ANSWERS No single organization is responsible for recognizing PCMHs.
A small employer has a self-funded health plan with reinsurance coverage. Which of the following
statements regarding this type of reinsurance is correct? - CORRECT ANSWERS Lower
"attachment points" decrease the employer's financial risk.
A life insurance policy in which the insurance provides lifetime protection, the premiums are level, but
they are paid only for a certain period is referred to as: - CORRECT ANSWERS Limited
payment life
Until now, the biggest source of cost savings with private health insurance exchanges has been: -
CORRECT ANSWERS Employees choosing less generous plans
Which of the following has been a key focus of redesign and improvement efforts in healthcare? -
CORRECT ANSWERS Primary care medicine
Which of the following statements regarding health expenditures and related research is correct? -
CORRECT ANSWERS Medicare currently pays Medicare Advantage plans on the basis of the
Centers for Medicare & Medicaid Services Hierarchical Condition Categories (CMS-HCC) model, which
uses approximately 70 clinical conditions.
The definition of disability for Social Security Disability Insurance benefits requires the impairment to be
expected to result in death or to last for a continuous period of at least how many months? - CORRECT
ANSWERS 12
Exam Questions with 100% Correct
Answers | Updated 2026 | Guaranteed
success
Mr. Smith is insured in his company's group life insurance plan. The plan is noncontributory and meets
the requirements of Internal Revenue Code Section 79. How much group life insurance can be provided
to Mr. Smith without him incurring a federal income tax liability on the value of his employer's
contributions? - CORRECT ANSWERS 50,000
Developed countries other than the U.S. spend a much lower proportion of their gross domestic product
on health care and enjoy better quality than the U.S. does. It is widely believed by policy makers that
one major reason for this phenomenon is because: - CORRECT ANSWERS The health Care
systems in such countries are built on a strong primary care base.
"Desktop medicine" is a fully integrated approach using information technology whose primary goal is
to: - CORRECT ANSWERS Help track patients through their plan of care
According to the RAND Health Insurance Experiment, which variable has the greatest power in
explaining health expenditures? - CORRECT ANSWERS Prior Utilization
The practice of hospitals paid based on billed charges by commercial insurers and allowable costs by
Medicare ended primarily because: - CORRECT ANSWERS Managed care plans introduced
selective contracting into the market.
A medical group is paid fee-for-service up to a withhold amount. The group is paid 75 percent at the
time of service and the remaining 25 percent is paid if the managed care plan: - CORRECT ANSWERS
Is able to cover its overall claim costs.
,What is the waiting period for Social Security Disability Income (SSDI) benefits? - CORRECT ANSWERS
five consecutive months
Reference pricing used by some managed care health plans: - CORRECT ANSWERS Is one
method of giving subscribers an incentive to use lower-cost but quality providers.
Which of the following is the approximate percentage of the U.S. population covered in the specified
U.S. healthcare scheme? - CORRECT ANSWERS 15% through the Medicare Program
Using private exchanges, employers have begun to implement the defined contribution model for
medical benefits for which group of individuals? - CORRECT ANSWERS Retirees and their
eligible dependents
Which of the following statements regarding Small Business Health Options Program (SHOP) exchanges
is correct? - CORRECT ANSWERS SHOP exchanges are marketplaces that are essentially
online portals which enable small employers to select from a range of fully insured plans and
contribution arrangements for their employees.
Which of the following statements best describes the Affordable Care Act (ACA) approach to the
problem of involuntary out-of-network emergency health care? - CORRECT ANSWERS Plans
cannot impose higher copayments or coinsurance for out-of-network emergency room care and balance
billing is still allowed within certain parameters; these requirements do not apply to grandfathered
plans.
A provision in some group life insurance plans that provides for the payment of all or part of the death
benefit in the event of the insured's terminal illness is called: - CORRECT ANSWERS
Accelerated death benefits
What is the provision in the Part D Medicare law that gives a significant benefit to pharmaceutical
companies? - CORRECT ANSWERS The law prohibits the government from using its
purchasing power to negotiate widespread discounts with drug plans.
, Which of the following measures of cost is generally used by analysts when they are examining the
impact of insurance premiums on employees' choice of health insurance plans? - CORRECT ANSWERS
The employee's out-of-pocket price
Which of the following statements regarding recognition as a patient-centered medical home (PCMH) is
correct? - CORRECT ANSWERS No single organization is responsible for recognizing PCMHs.
A small employer has a self-funded health plan with reinsurance coverage. Which of the following
statements regarding this type of reinsurance is correct? - CORRECT ANSWERS Lower
"attachment points" decrease the employer's financial risk.
A life insurance policy in which the insurance provides lifetime protection, the premiums are level, but
they are paid only for a certain period is referred to as: - CORRECT ANSWERS Limited
payment life
Until now, the biggest source of cost savings with private health insurance exchanges has been: -
CORRECT ANSWERS Employees choosing less generous plans
Which of the following has been a key focus of redesign and improvement efforts in healthcare? -
CORRECT ANSWERS Primary care medicine
Which of the following statements regarding health expenditures and related research is correct? -
CORRECT ANSWERS Medicare currently pays Medicare Advantage plans on the basis of the
Centers for Medicare & Medicaid Services Hierarchical Condition Categories (CMS-HCC) model, which
uses approximately 70 clinical conditions.
The definition of disability for Social Security Disability Insurance benefits requires the impairment to be
expected to result in death or to last for a continuous period of at least how many months? - CORRECT
ANSWERS 12
