CEBS GBA 2 PRACTICE EXAM GUIDE: 200 QUESTIONS
WITH CORRECT ANSWERS & RATIONALES FOR THE
2026/2027 EXAM
1. According to the RAND Health Insurance Experiment, which
variable has the greatest power in explaining future health care
expenditures?
A. Welfare eligibility
B. Prior utilization
C. Physical health status
D. Mental health status
Answer: B
Rationale: The RAND Health Insurance Experiment found that prior
utilization is the strongest predictor of future health care expenditures,
which has significant implications for risk adjustment and underwriting.
2. Which of the following best describes the concept of "moral
hazard" in the context of health insurance?
A. The tendency for healthier individuals to avoid purchasing insurance
B. The tendency for individuals to overconsume medical services when
the marginal cost of covered care is zero
C. The practice of providers charging different prices to different
insurers
D. The requirement that patients obtain referrals before seeing
specialists
Answer: B
Rationale: Moral hazard occurs when insurance coverage reduces the
,marginal cost of care to the consumer, leading to increased utilization of
medical services. This is a key market failure in healthcare where the
marginal cost of covered care is effectively zero for the insured.
3. In the U.S. healthcare market, which factor contributes most
significantly to market failure compared to normal competitive
markets?
A. Consumers have perfect information about prices
B. Providers compete primarily on price
C. Significant asymmetry in information between consumers, providers,
and insurers
D. Insurance eliminates all consumer choice
Answer: C
Rationale: The U.S. healthcare market has significant asymmetry in
information between consumers, providers, and insurers. Unlike normal
markets, consumers often lack information about price and quality, and
cost has been shown to be lower on the priority scale for choosing a
provider compared to other factors.
4. Which ACA Marketplace metal plan category has the lowest out-of-
pocket costs but the highest premiums?
A. Bronze
B. Silver
C. Gold
D. Platinum
Answer: D
Rationale: Platinum plans have the lowest out-of-pocket costs but the
highest premiums. Each metal category represents a different balance
between premium costs and cost-sharing.
,5. Why is the Silver Plan the most popular choice among ACA
marketplace enrollees?
A. It has the lowest premiums of all metal tiers
B. It offers the most comprehensive coverage
C. Cost-sharing subsidies to lower out-of-pocket costs are available only
to individuals who select Silver plans
D. It has the broadest provider networks
Answer: C
Rationale: The majority of enrollees are eligible for federal tax credit
subsidies tied to Silver level plans. Additionally, cost-sharing subsidies to
lower out-of-pocket costs are available only to individuals who select
Silver plans.
6. Which of the following is a defining characteristic of a consumer-
driven health plan (CDHP)?
A. First-dollar coverage for all preventive care
B. A high-deductible health plan (HDHP) paired with a health savings
account (HSA) or health reimbursement arrangement (HRA)
C. An exclusive provider network with no out-of-network coverage
D. Employer-funded health reimbursement accounts with no employee
contribution
Answer: B
Rationale: CDHPs combine a high-deductible health plan (which lowers
premiums) with a personal account (HSA or HRA) that can be used to
pay for qualified medical expenses. This design encourages consumer
engagement and cost-conscious decision-making.
7. Under the Mental Health Parity and Addiction Equity Act
(MHPAEA), if a group health plan offers both medical/surgical and
, mental health/substance use disorder benefits, the financial
requirements and treatment limitations applied to mental health
benefits must be:
A. Exactly the same as medical benefits
B. No more restrictive than the predominant requirements applied to
substantially all medical/surgical benefits
C. Less restrictive than medical benefits
D. Subject to a separate, higher deductible
Answer: B
Rationale: MHPAEA prohibits plans from imposing financial
requirements (deductibles, copays) and treatment limitations (visit
limits) on mental health/substance use disorder benefits that are more
restrictive than those applied to medical/surgical benefits. Parity is
measured against the predominant level applied to substantially all
medical/surgical benefits in a classification.
8. In a health reimbursement arrangement (HRA), unused funds at the
end of the year:
A. Are forfeited to the employer
B. May be carried over to future years at the employer's discretion, but
cannot be taken if the employee leaves the company
C. Can be withdrawn in cash by the employee
D. Must be rolled into an HSA
Answer: B
Rationale: HRAs are employer-funded accounts; the employer may
permit rollover of unused balances, but the funds remain employer
property. If the employee terminates employment, the HRA balance
WITH CORRECT ANSWERS & RATIONALES FOR THE
2026/2027 EXAM
1. According to the RAND Health Insurance Experiment, which
variable has the greatest power in explaining future health care
expenditures?
A. Welfare eligibility
B. Prior utilization
C. Physical health status
D. Mental health status
Answer: B
Rationale: The RAND Health Insurance Experiment found that prior
utilization is the strongest predictor of future health care expenditures,
which has significant implications for risk adjustment and underwriting.
2. Which of the following best describes the concept of "moral
hazard" in the context of health insurance?
A. The tendency for healthier individuals to avoid purchasing insurance
B. The tendency for individuals to overconsume medical services when
the marginal cost of covered care is zero
C. The practice of providers charging different prices to different
insurers
D. The requirement that patients obtain referrals before seeing
specialists
Answer: B
Rationale: Moral hazard occurs when insurance coverage reduces the
,marginal cost of care to the consumer, leading to increased utilization of
medical services. This is a key market failure in healthcare where the
marginal cost of covered care is effectively zero for the insured.
3. In the U.S. healthcare market, which factor contributes most
significantly to market failure compared to normal competitive
markets?
A. Consumers have perfect information about prices
B. Providers compete primarily on price
C. Significant asymmetry in information between consumers, providers,
and insurers
D. Insurance eliminates all consumer choice
Answer: C
Rationale: The U.S. healthcare market has significant asymmetry in
information between consumers, providers, and insurers. Unlike normal
markets, consumers often lack information about price and quality, and
cost has been shown to be lower on the priority scale for choosing a
provider compared to other factors.
4. Which ACA Marketplace metal plan category has the lowest out-of-
pocket costs but the highest premiums?
A. Bronze
B. Silver
C. Gold
D. Platinum
Answer: D
Rationale: Platinum plans have the lowest out-of-pocket costs but the
highest premiums. Each metal category represents a different balance
between premium costs and cost-sharing.
,5. Why is the Silver Plan the most popular choice among ACA
marketplace enrollees?
A. It has the lowest premiums of all metal tiers
B. It offers the most comprehensive coverage
C. Cost-sharing subsidies to lower out-of-pocket costs are available only
to individuals who select Silver plans
D. It has the broadest provider networks
Answer: C
Rationale: The majority of enrollees are eligible for federal tax credit
subsidies tied to Silver level plans. Additionally, cost-sharing subsidies to
lower out-of-pocket costs are available only to individuals who select
Silver plans.
6. Which of the following is a defining characteristic of a consumer-
driven health plan (CDHP)?
A. First-dollar coverage for all preventive care
B. A high-deductible health plan (HDHP) paired with a health savings
account (HSA) or health reimbursement arrangement (HRA)
C. An exclusive provider network with no out-of-network coverage
D. Employer-funded health reimbursement accounts with no employee
contribution
Answer: B
Rationale: CDHPs combine a high-deductible health plan (which lowers
premiums) with a personal account (HSA or HRA) that can be used to
pay for qualified medical expenses. This design encourages consumer
engagement and cost-conscious decision-making.
7. Under the Mental Health Parity and Addiction Equity Act
(MHPAEA), if a group health plan offers both medical/surgical and
, mental health/substance use disorder benefits, the financial
requirements and treatment limitations applied to mental health
benefits must be:
A. Exactly the same as medical benefits
B. No more restrictive than the predominant requirements applied to
substantially all medical/surgical benefits
C. Less restrictive than medical benefits
D. Subject to a separate, higher deductible
Answer: B
Rationale: MHPAEA prohibits plans from imposing financial
requirements (deductibles, copays) and treatment limitations (visit
limits) on mental health/substance use disorder benefits that are more
restrictive than those applied to medical/surgical benefits. Parity is
measured against the predominant level applied to substantially all
medical/surgical benefits in a classification.
8. In a health reimbursement arrangement (HRA), unused funds at the
end of the year:
A. Are forfeited to the employer
B. May be carried over to future years at the employer's discretion, but
cannot be taken if the employee leaves the company
C. Can be withdrawn in cash by the employee
D. Must be rolled into an HSA
Answer: B
Rationale: HRAs are employer-funded accounts; the employer may
permit rollover of unused balances, but the funds remain employer
property. If the employee terminates employment, the HRA balance
