Which of the following is a characteristic of a health maintenance organization (HMO)? A) unlimited choice of health-care providers B) no premiums until care is provided C) narrow, limited, medical services provided D) emphasis on cost containment ANSWER Answer: D
Date: September 19th, 2020
Which of the following statements about retirement benefits under pension plans is true? A) Under a flat percentage of annual earnings defined benefit formula, each employee receives the same dollar benefit. B) A benefit using final pay is usually based on an employee’s earnings during the last month of plan participation. C) A unit-benefit formula […]
Date: September 19th, 2020
Which of the following statements is (are) true with regard to group life insurance? I. Most group life insurance is whole life coverage. II. Most group life insurance plans allow a modest amount of life insurance on the employee’s spouse and dependent children. A) I only B) II only C) both I and II D) […]
Date: September 19th, 2020
All of the following are potential disadvantages to employees covered by a money-purchase pension plan EXCEPT A) The contribution rate by the employer is uncertain. B) The retirement benefit can only be estimated in advance of retirement. C) The benefit formula may produce an inadequate benefit if an employee enters the plan at an older […]
Date: September 19th, 2020
Which of the following is a provision of the Affordable Care Act? A) strengthening the use of pre-existing conditions exclusions B) prohibition of harmful practices by insurers. C) introduction of annual and lifetime limits to control costs D) elimination of flexible spending accounts ANSWER Answer: B
Date: September 19th, 2020
Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are) true? I. Only defined benefit plans are insured. II. Only benefits that are not yet vested are guaranteed. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: […]
Date: September 19th, 2020
The Affordable Care Act requires employers with 100 or more employees to provide health insurance on the employees or pay a penalty if at least one employee receives a tax credit and coverage through the Health Insurance Marketplace. This requirement—providing insurance or paying a fine—is known as the A) single-payer solution. B) employer shared responsibility. […]
Date: September 19th, 2020
Under a unit-benefit formula, benefits are a function of both A) earnings and years of service. B) age and earnings. C) age and gender. D) years of service and position within a firm. ANSWER Answer: A
Date: September 19th, 2020
Under older group medical expense plans, physicians were paid a fee for each covered service and were reimbursed on the basis of reasonable and customary charges, up to a maximum limit. These older group medical expense plans were called A) service medical plans. B) managed care plans. C) point-of-service plans. D) indemnity plans. […]
Date: September 19th, 2020
HMOs typically pay network physicians or medical groups a fixed annual or monthly payment for each member, regardless of the frequency or type of service provided. This payment is called a A) pro-rata charge. B) persistency bonus. C) capitation fee. D) corridor payment. ANSWER Answer: C
Date: September 19th, 2020
