GBA 1 - Study Guide Questions and Answers |Complete Solutions Graded A+ |100% Correct
What are PPOs expected to do as a new care models emerge that focus on preventative and
primary care? Adapt their offerings to take advantage of market demands.
What changes are likely to come to PPOs as a result of quality measurements that are part of
the Patient Protection and Affordable Care Act of 2010 (PPACA) -Accountability and value
-PPO will need to focus on how to improve quality and safety, decrease costs, keep healthy
people in a state of good health, and overall wellness, improve chronic illness care, keep people
from needing to use the emergency room (ER) unnecessarily, and provide access to community
resources.
Broad View of Employee Benefits Any form of compensation other than direct wages paid to
employees
Narrow View of Employee Benefits The employment relationship that are not underwritten
or paid directly by goverment
Categories that generally are considered to fall under a broad view of employee benefits -
Legally required benefits (Old Age/Disability/Unemployment)
-Payments for time not worked (lunch/vacations)
-Employers share of medical and medically related benefits
-Employers share of retirement and saving plan payments
-Misc. Benefits (employee discounts, severance pay, education, child care)
Why do firms have established employee benefit plans? -To attract and retain capable
employees
-Foster corporate efficiency, productivity, and improved employee morale.
-Employees' welfare and social objectives
, Inland Steel Case Study Duty to bargain in good faith over wages also included insurance
and fringes such as pension benefits. Event occurred in 1948.
Explain the significance of the Taft-Hartley Act? The Labor-Management Relations Act, also
called the Taft Hartley Act, sets forth the framework for good-faith collective bargaining over
wages, hours, conditions and terms of employment and employee benefits.
3 Major federal tax advantages associated with employee benefits -Most contributions to
employee benefit plans by employers are deductible as long as they are reasonable business
expenses.
-Employer contributions are generally not considered income to employees.
-Certain types of retirement and capital accumulation plans, benefits accumulate tax-free to the
employee until distributed.
Why is the employee benefit mechanism an effective and efficient way of providing insurance
coverage? -Convenient for employees
-Dont need to search for individual coverage
-Less expensive
What is the starting point in the design of any employee benefit plans? Setting overall
objective
List the type of overall questions that should be addressed in setting benefit objectives -
What benefits should be provided?
-Who should be covered by the benefit plan?
-Should employees have benefit options?
-How should the benefit plan be financed?
-How should the benefit plan be administered?
-How should should the benefit plan be communicated?
What are PPOs expected to do as a new care models emerge that focus on preventative and
primary care? Adapt their offerings to take advantage of market demands.
What changes are likely to come to PPOs as a result of quality measurements that are part of
the Patient Protection and Affordable Care Act of 2010 (PPACA) -Accountability and value
-PPO will need to focus on how to improve quality and safety, decrease costs, keep healthy
people in a state of good health, and overall wellness, improve chronic illness care, keep people
from needing to use the emergency room (ER) unnecessarily, and provide access to community
resources.
Broad View of Employee Benefits Any form of compensation other than direct wages paid to
employees
Narrow View of Employee Benefits The employment relationship that are not underwritten
or paid directly by goverment
Categories that generally are considered to fall under a broad view of employee benefits -
Legally required benefits (Old Age/Disability/Unemployment)
-Payments for time not worked (lunch/vacations)
-Employers share of medical and medically related benefits
-Employers share of retirement and saving plan payments
-Misc. Benefits (employee discounts, severance pay, education, child care)
Why do firms have established employee benefit plans? -To attract and retain capable
employees
-Foster corporate efficiency, productivity, and improved employee morale.
-Employees' welfare and social objectives
, Inland Steel Case Study Duty to bargain in good faith over wages also included insurance
and fringes such as pension benefits. Event occurred in 1948.
Explain the significance of the Taft-Hartley Act? The Labor-Management Relations Act, also
called the Taft Hartley Act, sets forth the framework for good-faith collective bargaining over
wages, hours, conditions and terms of employment and employee benefits.
3 Major federal tax advantages associated with employee benefits -Most contributions to
employee benefit plans by employers are deductible as long as they are reasonable business
expenses.
-Employer contributions are generally not considered income to employees.
-Certain types of retirement and capital accumulation plans, benefits accumulate tax-free to the
employee until distributed.
Why is the employee benefit mechanism an effective and efficient way of providing insurance
coverage? -Convenient for employees
-Dont need to search for individual coverage
-Less expensive
What is the starting point in the design of any employee benefit plans? Setting overall
objective
List the type of overall questions that should be addressed in setting benefit objectives -
What benefits should be provided?
-Who should be covered by the benefit plan?
-Should employees have benefit options?
-How should the benefit plan be financed?
-How should the benefit plan be administered?
-How should should the benefit plan be communicated?
