CEBS GBA 2 Practice Exam | Questions and Answers | 2025 Update | 100% Correct

CEBS GBA 2 Practice Exam Questions
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?

A.) The loading percentage
B.) The total gross premium
C.) The insurer's profit
D.) The employee's out-of-pocket price
E.) The expected future gross premium - CORRECT ANSWER-D.) The employee's
out-of-pocket price

Which of the following statements regarding recognition as a patient-centered medical
home (PCMH) is correct?

A.) The only organization that can officially recognize a PCMH is the Federally Qualified
Health Center Demonstration.
B.) The only organization that can officially recognize a PCMH is the National
Committee for Quality Assurance (NCQA).
C.) No single organization is responsible for recognizing PCMHs.
D.) The main organization that recognizes PCMHs is the Joint Commission and the
Accreditation Commission for Health Care.
E.) A PCMH can be recognized only by the state in which it is domiciled. - CORRECT
ANSWER-C.) No single organization is responsible for recognizing PCMHs.

Which of the following statements regarding private health insurance exchanges and
Small Business Health Options Program (SHOP) exchanges is correct?

A.) A lot of evidence has been produced to show that private exchanges have been
designed to make it easier for small business to self-insure.
B.) The income tax incentives previously provided to small employers in the SHOP
program have expired.
C.) Recently states were given the option of making SHOP exchanges mandatory for
all employers with fewer than 200 employees.
D.) Private exchanges could affect SHOP exchanges by siphoning enrollment from
them and thereby reducing revenue (administrative fees) critical to SHOPs' financial
viability.
E.) Unlike private exchanges, SHOP exchanges do not have the ability to offer small
employers a number of plan choices. - CORRECT ANSWER-D.) Private exchanges
could affect SHOP exchanges by siphoning enrollment from them and thereby reducing
revenue (administrative fees) critical to SHOPs' financial viability.

What is the waiting period for Social Security Disability Income (SSDI) benefits?

,A.) One month
B.) Three consecutive months
C.) Five consecutive months
D.) Six consecutive months
E.) Twelve consecutive months - CORRECT ANSWER-C.) Five consecutive months

"Desktop medicine" is a fully integrated approach using information technology whose
primary goal is to:

A.) Recruit prospective health plan subscribers
B.) Help track patients through their plan of care
C.) Encourage patient self-diagnosis using the Internet
D.) Gather health status metrics for large patient populations
E.) Expedite health provider use of technology - CORRECT ANSWER-B.) Help track
patients through their plan of care

Until now, the biggest source of cost savings with private health insurance exchanges
has been:

A.) Transition to the defined contribution approach
B.) Increased use of technology
C.) Employees choosing less generous plans
D.) Better health education of employees
E.) Elimination or reduction in administrative waste - CORRECT ANSWER-C.)
Employees choosing less generous plans

Out-of-network health care accounts for approximately what percentage of total covered
health insurance expenses?

A.) 3
B.) 10
C.) 20
D.) 25
E.) 30 - CORRECT ANSWER-B.) 10

The major advantage of term insurance for the policyowner is the fact that:

A.) A substantial amount of life insurance can be purchased for relatively modest
premiums
B.) It provides lifetime protection if the insured continues to pay the premiums
C.) The premiums remain at the same level for the life of the insured
D.) With a policy rider it can be used to provide retirement
E.) Premiums are highly competitive especially for those at older ages - CORRECT
ANSWER-A.) A substantial amount of life insurance can be purchased for relatively
modest premiums

, 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?

A.) 0

B.) 25,000

C.) 50,000

D.) 100,000

E.) An unlimited amount - CORRECT ANSWER-C.) 50,000

Which of the following statements regarding health expenditures and related research is
correct?
A.) In general, risk adjustment models have been able to predict about 80 percent of
total claims.
B.) Age and gender account for about 90 percent of explained variation in health care
expenditures.
C.) 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.
D.) Health maintenance organizations (HMOs) that could predict health expenditures
only five percentage points better than Medicare would not gain a significant amount of
profit per enrollee.
E.) Inpatient expenditures are more predictable than outpatient expenditures. -
CORRECT ANSWER-C.) 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.

Which of the following has been a key focus of redesign and improvement efforts in
healthcare?

A.) Hospital care
B.) Diagnostic/imaging services
C.) Critical care
D.) Orthopedic surgery
E.) Primary care medicine - CORRECT ANSWER-E.) Primary care medicine

Reference pricing used by some managed care health plans:

A.) Is an example of center-of-excellence pricing.