GBA 1 Exam Questions and Answers Already Passed Rated A+
CDHP - Answers A type of health plan with a high deductible and a personal spending account that puts
more risk on the participant
Larger firms are more likely to offer this plan.
CDHP - Answers Two main intentions of this type of plan:
1. Controlling cots and promoting greater value in healthcare spending by shifting responsibility to
consumers
2. Accommodating diverse consumer preferences
Risk Selection - Answers How insurers design plan policies results in low and high-risk participants having
different preferences for coverage
Chronic Illnesses - Answers Category of employees that have these types of illnesses are most likely to
use CDHP information tools
HSAs; HRAs - Answers More firms offer ___ than ___ (spending accounts)
Asymmetric Information - Answers Risk selection may result from an inefficiency due to this between
insurers and enrollees
Risk Segmentation - Answers When CDHPs generate greater risk selection because products are
attractive to low-risk enrollees who expect to use less care
CDHP savings - Answers Reductions in pharmaceutical and outpatient expenditures are drivers in ____
Few or no - Answers CDHPs generate ___ or ___ reductions in the use of preventative services when
they're exempted from the deductible
Large - Answers Plans with higher deductibles and less generous HRAs generate ___ reductions in
spending
Risk - Answers Uncertainty of the actual number and value of claims a benefits plan will incur
Narrow View - Answers Any form of compensation other than direct wages that result from the
employment relationship that is not underwritten or paid by the government is this type of view on
employee benefits
Peril - Answers The cause of a loss, such as a car accident
Hazard - Answers A condition or action that increases the probability that a peril will occur
SS, medicare, unemployment, worker's comp - Answers Legally mandated benefits paid by the employer
that are excluded in the narrow view of benefits
, Inland Steel - Answers A 1948 NLRB legal case that stipulated the duty to bargain in good faith over
wages also included insurance and fringe benefits such as pensions
W. W. Cross & Co. versus NLRB - Answers A NLRB case that rules that "wages" in good faith bargaining
include health and accident plans
Pure Risks - Answers Type of risk with only two alternatives: financial loss or no financial loss
Taft-Hartley Act - Answers Alternative name for the Labor Management Relations Act
Labor Management Relations Act - Answers Act that set the framework for good-faith collective
bargaining over wages, hours, working conditions, terms of employment and benefits
Avoidance - Answers A risk handling technique where the risk is not assumed
Insurance - Answers A risk handling technique where the potential for financial loss is shifted to an
insurer
Non-Contributory - Answers A benefit funding option where the employer pays all of the cost
Insurance - Answers A mechanism where the employee or employer pay money into a fund to cover any
occurrence of a loss
Indemnification - Answers Process in insurance that works to make the victim of a loss whole again
Contributory - Answers A benefit funding approach where the employer and employees share the cost
HRA - Answers Employer funded health savings accounts where the employer does not have to roll over
unused contributions from year to year
HSA - Answers A health savings plan that can be funded by the employer and employee. Funds can be
rolled over year to year and are portable.
Functional Approach - Answers A systematic method of analysis of an employer's benefits program that
analyzes the program's ability to meet participant needs, manage loss exposures, and fit compensation
and cost parameters
Play or Pay - Answers A rule requiring employers to offer health insurance to full time employees as
defined under the ACA or pay a penalty
Capitation - Answers A method of healthcare reimbursement to providers paid on a per-beneficiary
basis
Fee for service - Answers A method of healthcare reimbursement to providers paid on a per-service
basis
Benefits/Needs-Oriented Approach - Answers This type of approach is a philosophy in which the
employer focuses on the needs of the participants when designing a benefits plan
CDHP - Answers A type of health plan with a high deductible and a personal spending account that puts
more risk on the participant
Larger firms are more likely to offer this plan.
CDHP - Answers Two main intentions of this type of plan:
1. Controlling cots and promoting greater value in healthcare spending by shifting responsibility to
consumers
2. Accommodating diverse consumer preferences
Risk Selection - Answers How insurers design plan policies results in low and high-risk participants having
different preferences for coverage
Chronic Illnesses - Answers Category of employees that have these types of illnesses are most likely to
use CDHP information tools
HSAs; HRAs - Answers More firms offer ___ than ___ (spending accounts)
Asymmetric Information - Answers Risk selection may result from an inefficiency due to this between
insurers and enrollees
Risk Segmentation - Answers When CDHPs generate greater risk selection because products are
attractive to low-risk enrollees who expect to use less care
CDHP savings - Answers Reductions in pharmaceutical and outpatient expenditures are drivers in ____
Few or no - Answers CDHPs generate ___ or ___ reductions in the use of preventative services when
they're exempted from the deductible
Large - Answers Plans with higher deductibles and less generous HRAs generate ___ reductions in
spending
Risk - Answers Uncertainty of the actual number and value of claims a benefits plan will incur
Narrow View - Answers Any form of compensation other than direct wages that result from the
employment relationship that is not underwritten or paid by the government is this type of view on
employee benefits
Peril - Answers The cause of a loss, such as a car accident
Hazard - Answers A condition or action that increases the probability that a peril will occur
SS, medicare, unemployment, worker's comp - Answers Legally mandated benefits paid by the employer
that are excluded in the narrow view of benefits
, Inland Steel - Answers A 1948 NLRB legal case that stipulated the duty to bargain in good faith over
wages also included insurance and fringe benefits such as pensions
W. W. Cross & Co. versus NLRB - Answers A NLRB case that rules that "wages" in good faith bargaining
include health and accident plans
Pure Risks - Answers Type of risk with only two alternatives: financial loss or no financial loss
Taft-Hartley Act - Answers Alternative name for the Labor Management Relations Act
Labor Management Relations Act - Answers Act that set the framework for good-faith collective
bargaining over wages, hours, working conditions, terms of employment and benefits
Avoidance - Answers A risk handling technique where the risk is not assumed
Insurance - Answers A risk handling technique where the potential for financial loss is shifted to an
insurer
Non-Contributory - Answers A benefit funding option where the employer pays all of the cost
Insurance - Answers A mechanism where the employee or employer pay money into a fund to cover any
occurrence of a loss
Indemnification - Answers Process in insurance that works to make the victim of a loss whole again
Contributory - Answers A benefit funding approach where the employer and employees share the cost
HRA - Answers Employer funded health savings accounts where the employer does not have to roll over
unused contributions from year to year
HSA - Answers A health savings plan that can be funded by the employer and employee. Funds can be
rolled over year to year and are portable.
Functional Approach - Answers A systematic method of analysis of an employer's benefits program that
analyzes the program's ability to meet participant needs, manage loss exposures, and fit compensation
and cost parameters
Play or Pay - Answers A rule requiring employers to offer health insurance to full time employees as
defined under the ACA or pay a penalty
Capitation - Answers A method of healthcare reimbursement to providers paid on a per-beneficiary
basis
Fee for service - Answers A method of healthcare reimbursement to providers paid on a per-service
basis
Benefits/Needs-Oriented Approach - Answers This type of approach is a philosophy in which the
employer focuses on the needs of the participants when designing a benefits plan
