Certified Employee Benefit Specialist Group Benefits Associate 1
Practice Exam Questions (CEBS GBA 1) Exam Questions and
Answers
A prescription drug rebate occurs when: - ANSWER>>There is an agreement
between a pharmacy benefit manager and a drug manufacturer.
The concept designed to make victims of losses whole again reflect the principle
of: - ANSWER>>Indemnification
The design of any employee benefit plan should start with deciding: -
ANSWER>>What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
ANSWER>>The cause of loss
A healthcare plan that has no restrictions on a member's choice of provider, no
"steerage," and no basic utilization management is known as: -
ANSWER>>Indemnity plan
The legislation that plays a fundamentally important role in protecting sensitive
patient information gathered during behavioral treatment is: - ANSWER>>Health
Insurance Portability and Accountability Act (HIPAA)
A dental plan in which certain procedures are reimbursed on a scheduled basis
and others are reimbursed on a nonscheduled basis is called a(n): -
ANSWER>>Combination plan
,Regarding return on investment (ROI) evaluations and calculations, ROI
evaluations usually: - ANSWER>>Only consider the payback for the investor in
terms of the money they get back for the money they put in.
A behavioral health care carve-out program usually operates under a separate
contract and from a separate company known as: - ANSWER>>a Managed
Behavioral Health Care Organization (MBHO)
There can be great variability in employer spending to sponsor a workplace
wellness program. The cost of these programs per employee per year typically
ranges from: - ANSWER>>$0-$450
Regarding employee benefit planning, the functional approach is: -
ANSWER>>Compatible with both the compensation/service oriented benefit
philosophy and the needs-oriented benefit philosophy
The landmark "Inland Steel Case" had extreme importance because it: -
ANSWER>>Stated the employer had the duty to bargain in good faith over wages
which also included insurance and fringe benefits
Money forfeited by employees under the use-it-or-lose-it rule in cafeteria plans is
called an experience gain. These experience gains may not be: -
ANSWER>>Returned to the employees who incurred the forfeitures.
They may be:
- retained by the employer
- used to reduce admin expenses
- used to reduce employer's required salary reduction amounts
- donated to charity
Numerous studies have examined the effectiveness of workplace wellness
programs in promoting health or preventing disease. How effective are they
proven to be based on the studies? - ANSWER>>These programs have had limited
evidence of their effectiveness.
,Generally in a premium conversion cafeteria plan: - ANSWER>>There are no
employer contributions.
The "managed care backlash" of the late 1990s created significant growth in
which of the following types of health care organizations? - ANSWER>>Preferred
Provider Organizations (PPOs)
For a cafeteria plan to be afforded favorable tax treatment, the plan must allow
participants to choose between how many benefits consisting of cash (or a
taxable benefit that is treated as cash) and qualified benefits? - ANSWER>>Two or
more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - ANSWER>>A flat dollar amount for individuals and a flat dollar amount
for families
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
ANSWER>>Evergreen election
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? -
ANSWER>>Avoidance, retention, insurance and control
Which of the following statements regarding dental care and the ACA is correct?
- Dental care is not an essential benefit for adults in the ACA
- The ACA requires dental coverage for all children
- Dental coverage is required by the ADA only if health coverage is provided under
a self-insured/self-administered plan
- The ACA requires comprehensive dental care for adults and children
, - The ACA excludes all dental care benefits - ANSWER>>Dental care is not an
essential benefit for adults in the ACA
A mechanism by which one attempts to prevent or reduce the probability of a loss
taking place or to reduce the severity of the loss if it does take place is referred to
as: - ANSWER>>Control
Benefits for so-called lifestyle drugs are: - ANSWER>>Typically excluded from
employer plans.
Which of the following statements regarding workplace wellness programs is
correct?
- A workplace wellness program should be designed to target the most fitness-
conscious employees.
- Workplace wellness programs are used almost exclusively by large employers.
- The most significant drivers of cost of workplace wellness programs are
incentives, equipment and outside service providers.
- Health screenings known as health risk assessments (HRAs) are prohibited if
used in conjunction with workplace wellness programs
- Biometric testing for workplace wellness programs must be conducted by
qualified physicians. - ANSWER>>The most significant drivers of cost of workplace
wellness programs are incentives, equipment and outside service providers.
Which of the following statements regarding managed behavioral health
organizations (MBHOs) and administrative services only (ASO) arrangements is
correct?
- ASOs are especially effective for small employers
- ASOs are sometimes referred to as "fully insured" plans
- An ASO transfers the financial risk of health care costs to an insurance company
- A key advantage of ASOs is that employers can offer the same benefit to
employees working in different states because ERISA exempts ASO plans from
compliance with state laws and regulations.
Practice Exam Questions (CEBS GBA 1) Exam Questions and
Answers
A prescription drug rebate occurs when: - ANSWER>>There is an agreement
between a pharmacy benefit manager and a drug manufacturer.
The concept designed to make victims of losses whole again reflect the principle
of: - ANSWER>>Indemnification
The design of any employee benefit plan should start with deciding: -
ANSWER>>What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
ANSWER>>The cause of loss
A healthcare plan that has no restrictions on a member's choice of provider, no
"steerage," and no basic utilization management is known as: -
ANSWER>>Indemnity plan
The legislation that plays a fundamentally important role in protecting sensitive
patient information gathered during behavioral treatment is: - ANSWER>>Health
Insurance Portability and Accountability Act (HIPAA)
A dental plan in which certain procedures are reimbursed on a scheduled basis
and others are reimbursed on a nonscheduled basis is called a(n): -
ANSWER>>Combination plan
,Regarding return on investment (ROI) evaluations and calculations, ROI
evaluations usually: - ANSWER>>Only consider the payback for the investor in
terms of the money they get back for the money they put in.
A behavioral health care carve-out program usually operates under a separate
contract and from a separate company known as: - ANSWER>>a Managed
Behavioral Health Care Organization (MBHO)
There can be great variability in employer spending to sponsor a workplace
wellness program. The cost of these programs per employee per year typically
ranges from: - ANSWER>>$0-$450
Regarding employee benefit planning, the functional approach is: -
ANSWER>>Compatible with both the compensation/service oriented benefit
philosophy and the needs-oriented benefit philosophy
The landmark "Inland Steel Case" had extreme importance because it: -
ANSWER>>Stated the employer had the duty to bargain in good faith over wages
which also included insurance and fringe benefits
Money forfeited by employees under the use-it-or-lose-it rule in cafeteria plans is
called an experience gain. These experience gains may not be: -
ANSWER>>Returned to the employees who incurred the forfeitures.
They may be:
- retained by the employer
- used to reduce admin expenses
- used to reduce employer's required salary reduction amounts
- donated to charity
Numerous studies have examined the effectiveness of workplace wellness
programs in promoting health or preventing disease. How effective are they
proven to be based on the studies? - ANSWER>>These programs have had limited
evidence of their effectiveness.
,Generally in a premium conversion cafeteria plan: - ANSWER>>There are no
employer contributions.
The "managed care backlash" of the late 1990s created significant growth in
which of the following types of health care organizations? - ANSWER>>Preferred
Provider Organizations (PPOs)
For a cafeteria plan to be afforded favorable tax treatment, the plan must allow
participants to choose between how many benefits consisting of cash (or a
taxable benefit that is treated as cash) and qualified benefits? - ANSWER>>Two or
more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - ANSWER>>A flat dollar amount for individuals and a flat dollar amount
for families
When a participant of a cafeteria plan makes a one-time election on coverage
that stays in force from plan year to plan year unless the participant elects to
make a change during the applicable election period, it is referred to as a(n): -
ANSWER>>Evergreen election
Which risk-handling techniques are being used by a firm that decides to not
produce a dangerous chemical, to purchase insurance with a $10,000 deductible
on its assets and to install a fire sprinkler system throughout the plant? -
ANSWER>>Avoidance, retention, insurance and control
Which of the following statements regarding dental care and the ACA is correct?
- Dental care is not an essential benefit for adults in the ACA
- The ACA requires dental coverage for all children
- Dental coverage is required by the ADA only if health coverage is provided under
a self-insured/self-administered plan
- The ACA requires comprehensive dental care for adults and children
, - The ACA excludes all dental care benefits - ANSWER>>Dental care is not an
essential benefit for adults in the ACA
A mechanism by which one attempts to prevent or reduce the probability of a loss
taking place or to reduce the severity of the loss if it does take place is referred to
as: - ANSWER>>Control
Benefits for so-called lifestyle drugs are: - ANSWER>>Typically excluded from
employer plans.
Which of the following statements regarding workplace wellness programs is
correct?
- A workplace wellness program should be designed to target the most fitness-
conscious employees.
- Workplace wellness programs are used almost exclusively by large employers.
- The most significant drivers of cost of workplace wellness programs are
incentives, equipment and outside service providers.
- Health screenings known as health risk assessments (HRAs) are prohibited if
used in conjunction with workplace wellness programs
- Biometric testing for workplace wellness programs must be conducted by
qualified physicians. - ANSWER>>The most significant drivers of cost of workplace
wellness programs are incentives, equipment and outside service providers.
Which of the following statements regarding managed behavioral health
organizations (MBHOs) and administrative services only (ASO) arrangements is
correct?
- ASOs are especially effective for small employers
- ASOs are sometimes referred to as "fully insured" plans
- An ASO transfers the financial risk of health care costs to an insurance company
- A key advantage of ASOs is that employers can offer the same benefit to
employees working in different states because ERISA exempts ASO plans from
compliance with state laws and regulations.
