CEBS GBA 1 LATEST EXAM 400
COMPLETE PRACTICE
QUESTIONS AND ANSWERS
UPDATED FINAL EXAM
The "managed care backlash" of the late 1990s created significant growth in which
of the following types of health care organizations? - ✔✔✔ANSW✔✔..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? -
✔✔✔ANSW✔✔..Two or more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - ✔✔✔ANSW✔✔..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):
-
✔✔✔ANSW✔✔..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? - ✔✔✔ANSW✔✔..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 - ✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..Control
Benefits for so-called lifestyle drugs are: - ✔✔✔ANSW✔✔..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 fitnessconscious
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. - ✔✔✔ANSW✔✔..The most significant drivers of cost of workplace wellness programs
are incentives, equipment and outside service providers.
A prescription drug rebate occurs when: - ✔✔✔ANSW✔✔..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:
- ✔✔✔ANSW✔✔..Indemnification
The design of any employee benefit plan should start with deciding:
-
,✔✔✔ANSW✔✔..What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
✔✔✔ANSW✔✔..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: -
✔✔✔ANSW✔✔..Indemnity plan
The legislation that plays a fundamentally important role in protecting sensitive patient information
gathered during behavioral treatment is: - ✔✔✔ANSW✔✔..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): -
✔✔✔ANSW✔✔..Combination plan
Regarding return on investment (ROI) evaluations and calculations, ROI evaluations usually: -
✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..$0-$450
Regarding employee benefit planning, the functional approach is: -
✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..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: -
✔✔✔ANSW✔✔..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? -
✔✔✔ANSW✔✔..These programs have had limited evidence of their effectiveness.
Generally in a premium conversion cafeteria plan: - ✔✔✔ANSW✔✔..There are no
employer contributions.
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.
- Employers who purchase an ASO contract agree to assume the financial risk for claims
payments up to a certain (rather large) amount but claims in excess of the stipulated amount are paid
by the MBHO - ✔✔✔ANSW✔✔..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.
Dental treatments are placed into ten professional treatment categories. The repair
of a natural tooth is included in which of the following categories?
COMPLETE PRACTICE
QUESTIONS AND ANSWERS
UPDATED FINAL EXAM
The "managed care backlash" of the late 1990s created significant growth in which
of the following types of health care organizations? - ✔✔✔ANSW✔✔..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? -
✔✔✔ANSW✔✔..Two or more
The maximum annual contribution that can be made to a health savings account
(HSA) is: - ✔✔✔ANSW✔✔..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):
-
✔✔✔ANSW✔✔..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? - ✔✔✔ANSW✔✔..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 - ✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..Control
Benefits for so-called lifestyle drugs are: - ✔✔✔ANSW✔✔..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 fitnessconscious
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. - ✔✔✔ANSW✔✔..The most significant drivers of cost of workplace wellness programs
are incentives, equipment and outside service providers.
A prescription drug rebate occurs when: - ✔✔✔ANSW✔✔..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:
- ✔✔✔ANSW✔✔..Indemnification
The design of any employee benefit plan should start with deciding:
-
,✔✔✔ANSW✔✔..What are the overall objectives of the plan.
A peril as the term applies to the insurance mechanism is defined as: -
✔✔✔ANSW✔✔..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: -
✔✔✔ANSW✔✔..Indemnity plan
The legislation that plays a fundamentally important role in protecting sensitive patient information
gathered during behavioral treatment is: - ✔✔✔ANSW✔✔..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): -
✔✔✔ANSW✔✔..Combination plan
Regarding return on investment (ROI) evaluations and calculations, ROI evaluations usually: -
✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..$0-$450
Regarding employee benefit planning, the functional approach is: -
✔✔✔ANSW✔✔..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: - ✔✔✔ANSW✔✔..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: -
✔✔✔ANSW✔✔..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? -
✔✔✔ANSW✔✔..These programs have had limited evidence of their effectiveness.
Generally in a premium conversion cafeteria plan: - ✔✔✔ANSW✔✔..There are no
employer contributions.
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.
- Employers who purchase an ASO contract agree to assume the financial risk for claims
payments up to a certain (rather large) amount but claims in excess of the stipulated amount are paid
by the MBHO - ✔✔✔ANSW✔✔..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.
Dental treatments are placed into ten professional treatment categories. The repair
of a natural tooth is included in which of the following categories?
