CEBS GBA 1 ACTUAL FINAL EXAM | COMPLETE QUESTIONS WITH
EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
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.
- 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 - (answer)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? - (answer)Restorative
Which of the following statements regarding the functional approach to employee benefit
planning is correct?
- The functional approach assumes a business firm is interested in providing an industry-wide
average level of employee benefits
EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
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.
- 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 - (answer)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? - (answer)Restorative
Which of the following statements regarding the functional approach to employee benefit
planning is correct?
- The functional approach assumes a business firm is interested in providing an industry-wide
average level of employee benefits
