CEBS GBA Exam 2: 200 Actual Questions with Answers & Explanations | Complete Study Guide for CEBS Certification | INSTANT PDF DOWNLOAD

CEBS GBA Exam 2: 200 Actual Questions with
Answers & Explanations | Complete Study Guide
for CEBS Certification | INSTANT PDF
DOWNLOAD
Prepare for the CEBS GBA Exam 2 with this comprehensive 200-question practice test. Includes
answers in bold italics, detailed rationales, and coverage of ACA, self-funding, ERISA, Medicare,
Medicaid, and benefits administration. Perfect for Group Benefits Associate certification
preparation.




SECTION 1: The U.S. Healthcare System & Market Dynamics (Questions 1-25)

1. According to the RAND Health Insurance Experiment, which variable has the
greatest power in explaining health expenditures?

 A) Welfare eligibility
 B) Prior utilization
 C) Physical health (based on self-reported measures)
 D) General health (based on self-reported measures)
 E) Mental health (based on self-reported measures)

B) Prior utilization
*Explanation: The RAND Health Insurance Experiment found that prior utilization is the
strongest predictor of future health care expenditures, as past behavior patterns tend to
persist regardless of other health status measures .

2. What is the basic assumption underlying the concept of a free market?

, A) Government regulates all prices and services
 B) Rational customers will make informed decisions about value, quality and price
 C) Producers have complete control over consumer choices
 D) Prices are fixed by supply only
 E) Consumers have no influence on market outcomes

B) Rational customers will make informed decisions about value, quality and price
*Explanation: Free market theory assumes that rational consumers make informed
choices, and producers who meet consumer demands are rewarded with market share and
profit. This drives efficiency and innovation

3. How is the free market assumption challenged by the theory of "bounded
rationality"?

 A) Consumers always make perfectly rational decisions
 B) Consumers are constrained by limited knowledge and understanding of their
choices
 C) Producers control all market information
 D) Government regulations eliminate consumer choice
 E) Prices are too high for rational decision-making

B) Consumers are constrained by limited knowledge and understanding of their
choices
*Explanation: Bounded rationality recognizes that consumers' rational decision-making is
limited by their knowledge, understanding, and cognitive capacity to evaluate complex
choices .

4. What are the economic benefits of a free market in healthcare?

 A) Fixed prices for all services
 B) Consumers can "vote with their feet" and select other options if dissatisfied
 C) Government determines which providers succeed
 D) Eliminates all competition

, E) Guarantees equal outcomes for all consumers

B) Consumers can "vote with their feet" and select other options if dissatisfied
*Explanation: In a free market, consumer choice empowers customers, regulates
producers through competition, and drives efficiency. Dissatisfied consumers can choose
alternative providers or plans .

5. Which of the following describes a way the U.S. healthcare market does NOT
function like a normal market?

 A) Consumers have perfect information about prices and quality
 B) Significant asymmetry in information between consumers, providers, and insurers
 C) Prices are transparent and easily comparable
 D) All consumers have equal bargaining power
 E) Competition eliminates all inefficiencies

B) Significant asymmetry in information between consumers, providers, and insurers
*Explanation: The healthcare market features information asymmetry where providers
know far more about treatment options and costs than consumers, unlike a normal market
where information is equally available

6. What is "moral hazard" in the context of health insurance?

 A) The tendency to avoid medical care when needed
 B) The problem that the marginal cost of covered care is zero, causing some to
overconsume medical care
 C) The risk that insurers will deny valid claims
 D) The ethical obligation to provide care regardless of cost
 E) The hazard of medical errors in treatment

B) The problem that the marginal cost of covered care is zero, causing some to
overconsume medical care
*Explanation: Moral hazard occurs when insured individuals consume more health care

, services because they don't bear the full cost of care, as insurance reduces the out-of-
pocket price .

7. Which of the following is a recent initiative in the U.S. that purports to use market
forces to increase efficiency in the healthcare system?

 A) Eliminating all private insurance
 B) Employers offering more High Deductible Health Plans (HDHPs) paired with HSAs
 C) Mandating single-payer coverage
 D) Price controls on all medical services
 E) Eliminating consumer choice

B) Employers offering more High Deductible Health Plans (HDHPs) paired with HSAs
*Explanation: HDHPs with HSAs aim to make consumers more cost-conscious by giving
them "skin in the game," encouraging prudent purchasing of care with their own money .

8. What percentage of Americans receive health insurance through their employer?

 A) 25%
 B) 35%
 C) 48%
 D) 60%
 E) 72%

C) 48%
**Explanation: Employer-sponsored insurance covers the largest portion of Americans at
approximately 48% of the population .*

9. What percentage of Americans are covered by Medicaid?

 A) 8%
 B) 12%
 C) 16%
 D) 20%