BUS 121 Chapter 5 Employer-Sponsored Health-Care Plans PDF

1. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a Health Maintenance Organization (HMO) in a health-care plan? A) To provide coverage for a wide range of medical services B) To offer flexibility in choosing healthcare providers C) To emphasize preventive care and...

1. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a Health Maintenance Organization (HMO) in a health-care plan? A) To provide coverage for a wide range of medical services B) To offer flexibility in choosing healthcare providers C) To emphasize preventive care and wellness programs D) To allow employees to pay for medical services out-of-pocket Answer: C) To emphasize preventive care and wellness programs 2. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is a High Deductible Health Plan (HDHP) known for in health-care benefits? A) Providing comprehensive coverage with low deductibles B) Offering unlimited coverage for all medical expenses C) Requiring higher deductibles and lower premiums D) Including no out-of-pocket costs for employees Answer: C) Requiring higher deductibles and lower premiums 3. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a Preferred Provider Organization (PPO) in a health-care plan? A) To limit employees to a specific network of healthcare providers B) To offer coverage for any medical service without restrictions C) To encourage employees to seek out-of-network care D) To provide coverage only for emergency medical services Answer: A) To limit employees to a specific network of healthcare providers 4. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the main difference between a Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO)? A) HMOs do not require referrals for specialists, while PPOs do B) PPOs have a more limited network of healthcare providers than HMOs C) HMOs typically have higher out-of-pocket costs for employees than PPOs D) PPOs focus more on preventive care and wellness programs than HMOs Answer: A) HMOs do not require referrals for specialists, while PPOs do 5. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a Point-of-Service (POS) plan in a health-care benefit package? A) To provide coverage for emergency medical services only B) To allow employees to choose any healthcare provider without restrictions C) To offer a mix of HMO and PPO features, with some flexibility for employees D) To limit coverage to in-network providers and services Answer: C) To offer a mix of HMO and PPO features, with some flexibility for employees 6. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the significance of Consumer-Driven Health Care in modern health-care benefits? A) It aims to increase out-of-pocket costs for employees B) It encourages employees to take a more active role in managing their healthcare expenses C) It eliminates the need for health insurance coverage D) It restricts employees to specific healthcare providers Answer: B) It encourages employees to take a more active role in managing their healthcare expenses 7. Chapter 5: Employer-Sponsored Health-Care Plans Question: What role do preexisting condition clauses play in health-care plans? A) They limit coverage for conditions that existed before the start of the plan B) They provide additional coverage for new medical conditions C) They require employees to undergo regular medical check-ups D) They ensure coverage for all medical conditions, regardless of when they developed Answer: A) They limit coverage for conditions that existed before the start of the plan 8. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do out-of-pocket maximums benefit employees in health-care plans? A) They increase the overall cost of healthcare for employees B) They limit the total amount employees have to pay for covered services C) They eliminate the need for insurance coverage D) They vary based on the employee's medical history Answer: B) They limit the total amount employees have to pay for covered services 9. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of lifetime and yearly limits in health-care plans? A) To ensure unlimited coverage for all medical expenses B) To restrict the total amount the insurance company will pay over an employee's lifetime or in a year C) To encourage employees to seek medical care only when absolutely necessary D) To provide coverage for preexisting conditions Answer: B) To restrict the total amount the insurance company will pay over an employee's lifetime or in a year 10. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do Health Savings Accounts (HSAs) differ from Flexible Spending Accounts (FSAs) in health-care benefits? A) HSAs are funded by the employer, while FSAs are funded by the employee B) HSAs are portable and owned by the employee, while FSAs are tied to the employer C) HSAs can only be used for medical expenses, while FSAs can be used for any purpose D) HSAs have no contribution limits, while FSAs have strict contribution limits Answer: B) HSAs are portable and owned by the employee, while FSAs are tied to the employer 11. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a Health Reimbursement Arrangement (HRA) in a health-care benefit package? A) To provide employees with tax-free income for medical expenses B) To reimburse employees for all out-of-pocket medical costs C) To offer a choice of different health insurance plans to employees D) To allow employers to contribute funds for employees' medical expenses Answer: D) To allow employers to contribute funds for employees' medical expenses 12. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do wellness programs benefit both employees and employers in a health-care plan? A) They increase healthcare costs for employees B) They improve employee health and productivity while reducing healthcare expenses C) They limit access to preventive care services D) They are not linked to any financial incentives for employees Answer: B) They improve employee health and productivity while reducing healthcare expenses 13. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a wellness program in a health-care benefit package? A) To increase healthcare costs for employees B) To provide coverage for all medical services C) To improve employee health and well-being D) To limit access to healthcare providers Answer: C) To improve employee health and well-being 14. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do Employee Assistance Programs (EAPs) support employees in a health-care plan? A) By providing financial assistance for medical expenses B) By offering counseling and support services for personal and work-related issues C) By limiting access to healthcare providers D) By increasing out-of-pocket costs for employees Answer: B) By offering counseling and support services for personal and work-related issues 15. Chapter 5: Employer-Sponsored Health-Care Plans Question: What role do preventive care services play in a health-care benefit package? A) They increase healthcare costs for employees B) They focus on treating existing medical conditions C) They aim to prevent illnesses and promote overall health D) They are not covered by most health insurance plans Answer: C) They aim to prevent illnesses and promote overall health 16. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do retirement plans benefit employees in terms of long-term financial security? A) By providing immediate cash bonuses B) By offering tax-free income for medical expenses C) By helping employees save for retirement and secure their financial future D) By limiting access to healthcare providers Answer: C) By helping employees save for retirement and secure their financial future 17. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the purpose of a defined contribution retirement plan? A) To guarantee a specific retirement income for employees B) To allow employees to contribute to their retirement savings on a tax-deferred basis C) To provide a fixed amount of retirement benefits based on years of service and salary D) To offer a choice of different health insurance plans to employees Answer: B) To allow employees to contribute to their retirement savings on a tax-deferred basis 18. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do defined benefit retirement plans differ from defined contribution plans? A) Defined benefit plans offer a fixed retirement income, while defined contribution plans depend on employee contributions B) Defined contribution plans offer a fixed retirement income, while defined benefit plans depend on employee contributions C) Defined benefit plans have no contribution limits, while defined contribution plans have strict contribution limits D) Defined contribution plans are funded by the employer, while defined benefit plans are funded by the employee Answer: A) Defined benefit plans offer a fixed retirement income, while defined contribution plans depend on employee contributions 19. Chapter 5: Employer-Sponsored Health-Care Plans Question: What role do employer contributions play in a defined contribution retirement plan? A) Employers contribute a fixed amount to employees' retirement savings accounts B) Employers match a portion of employees' contributions to their retirement savings C) Employers guarantee a specific retirement income for employees D) Employers provide tax-free income for medical expenses Answer: B) Employers match a portion of employees' contributions to their retirement savings 20. Chapter 5: Employer-Sponsored Health-Care Plans Question: How do employer-sponsored retirement plans contribute to employee retention and loyalty? A) By offering immediate cash bonuses B) By providing tax-free income for medical expenses C) By helping employees save for retirement and secure their financial future D) By limiting access to healthcare providers Answer: C) By helping employees save for retirement and secure their financial future 21. Chapter 5: Employer-Sponsored Health-Care Plans Question: What is the significance of employer-sponsored retirement plans in the overall employee benefits package? A) They have no impact on employee satisfaction and retention B) They are the sole source of retirement income for employees C) They play a crucial role in attracting and retaining talent, as well as ensuring long-term financial security for employees D) They are not considered a valuable benefit by employees Answer: C) They play a crucial role in attracting and retaining talent, as well as ensuring long-term financial security for employees