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. […]
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
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. […]
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
The Affordable Care Act created program that enables small firms to offer health insurance to their employees. The program provides flexibility, choice, and the convenience of on-line account management. This program is called the A) Medical Advantage plan. B) Medicaid program. C) FAIR plan. D) SHOP Marketplace program. ANSWER Answer: D
Which of the following statements about the tax implications of qualified pension plans is true? A) Investment income on plan assets is taxable in the year the investment income is earned. B) Employer contributions are deductible up to certain limits as an ordinary business expense. C) Employer contributions are considered taxable income to employees but […]
Under many cafeteria plans, employees make premium contributions with pre-tax dollars and a salary reduction that are used to purchase group health insurance or dental insurance. This type of cafeteria plan is called a A) health reimbursement arrangement plan. B) premium conversion plan. C) full-choice plan. D) flexible spending account plan. ANSWER Answer: […]
Which of the following statements regarding recent developments in employer-sponsored health plans is (are) true? I. Preferred provider organizations (PPOs) continue to dominate group health insurance markets. II. The number of employers offering medical benefits to workers who retire early has increased. A) I only B) II only C) both I and II D) neither […]
An employer-funded plan with favorable tax advantages, which repays employees for medical care not covered by the employer’s standard medical plan is a(n) A) 401(k) account. B) individual retirement account (IRA). C) health reimbursement arrangement (HRA). D) flexible spending account (FSA). ANSWER Answer: C
What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan? A) age 18 and 6 months of service B) age 21 and 1 year of service C) age 21 and 3 years of service D) age 25 and 4 years of service […]
