Chapter 12

managed competition

A _____ is an employer-provided subsidized basic medical plan with buy-up options.

tiered networks

A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the:

cafeteria plans

A major approach to increasing employee awareness of health care choices and cost is:

Defined Contribution Plan

A plan in which a certain amount of percentage of money is set aside each year by a company for the benefit of the employee. If you leave the company the money is yours to take with you. And you can use it when you need it.

increase employee understanding of plan objectives.

A primary benefits objective of most employers is to:

second

A recent survey shows employees ranking employee benefits ________ in explaining job satisfaction.

long-term disability

Across five studies ranking preference for benefits, _______ had the lowest average ranking.

employees can choose coverage levels

Advantages of employer sponsored life and health insurance include all of the following except:

equity

All of the following except ____ are factors affecting employer choices of components of a benefit package.

foreign companies

All of the following factors are reasons for the growth of benefits except:

401K

Alternatives to financing benefit plans include all of the following except: contributory 401K noncontributory employee financed

25; 30

In 1959, benefits were approximately ____ percent of payroll and in 2010, the percent was ___.

standard

In the ____ benefit package, a package is designed with the average employee in mind.

medical insurance

Surveys show that the most highly valued benefit is:

Patient Protection and Affordable Care Act

The ___________ act requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

cost-centered

The best way for companies to decide whether or not the company can afford a benefit is on a ____ basis.

outsourcing.

The biggest trend in cost-containment is:

who should be protected or benefited

The first issue in setting up a benefits package is:

the U.S. Chamber of Commerce

The most widely used benefit survey is conducted by:

four trillion

The total cost of employee benefits in the U.S. is _________ dollars.

less than 15

The typical employee can recall ____ percent of the benefits they receive.

customer-driven health care

Tiered networks, managed competition and health savings accounts are all examples of choices for __________

pensions; medical coverage

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____

pensions

Which of the following benefits are not mandated by state or federal legislation?

No benefit has been found to increase productivity.

Which of the following benefits has been found to increase productivity in organizations?

Benefit adequacy

Which of the following is not a benefit administration issue?

New benefits are more difficult to introduce

Which of the following is not a disadvantage of flexible benefit programs?

Diversity compliance

Which of the following is not a major benefits planning and design issue?

Basing benefits on historical costs

Which of the following is not a part of the cost-centered approach for deciding to provide a benefit?

Cost savings

is/are the primary reason why businesses adopt flexible benefit programs

administrative expenses increase

All of the following are advantages of flexible benefits except:

employees have fewer interactions with HR staff

All of the following are advantages of managing benefits via the internet or intranet except:

Competitor pay surveys

_______ is/are not a method of determining employee benefit preferences.

Defined Benefit Plan

A plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, seniority, and age rather than depending on individual investment

requiring employees to pay higher deductibles and copays

A recent survey shows that the majority of employers are responding to increased benefit costs by _______.

employee benefits

A study of the factors affecting MBA students' job choice showed ____ was ranked as least important.

flexible benefit

A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called ___ plan.

physical exams of all new hires

All of the following are cost containment practices except: -probationary periods -physical exams of all new hires -copay -seeking competitive bids for benefit delivery

more favorable tax treatment

Employers prefer contributory benefits financing for all except which of the following? more favorable tax treatment a "free good", is less valuable to an employee employees have little personal interest in controlling the costs of a free good it helps control benefit costs

Defined benefit plans

Which of the following would an employer be least likely to use if they sought to reduce benefit costs?

FMLA 1993

______ mandates 12 weeks of leave for all workers at companies that employee 50 or more people.

COBRA 1984

________ allows employees who have resigned or were laid off to continue to purchase health insurance under their employer's plan.

Cafeteria plans

__________ is not an example of an approach to customer-driven health care.

An employee benefit handbook

__________ is the most frequent method of benefit communication.

Stock plans

____is/are one of the most preferred benefits.