Chapter 12 The benefit determination process

Customer driven health care (1)

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

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 plan

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

Long Term Disability

Across five studies ranking preference for benefits, __________________ had the lowest average rating

False, employees DO NOT have options to choose coverage levels

Advantages of employer sponsored life and health insurance means employees have options to choose coverage levels?

Wage and price controls, unions, employer impetus. Foreign competition IS NOT a reason for the growth of benefits

Identify the factors as reasons for the growth of benefits?

25%, 30%

In 1959, benefits were approximately _____ of payroll and in 2010, the percent was_____

Standard

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

No, an administrative expense increase IS NOT an advantage of flexible benefits

Is an administrative expense increase an advantage of flexible benefits? Briefly explain?

Medical insurance

Surveys show that the most highly valued benefit is

who should be protected or benefited

The first issue in setting up a benefits package is

4 trillion dollars

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

Less than 15%

The typical employee can recall _______ of the benefits they receive?

Customer driven health care (2)

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

Pensions

What benefits are not mandated by state or federal legislation?

Benefit adequacy

What is not a benefit administration issue? Briefly explain?

New benefits are more difficult to introduce

What is not a disadvantage of flexible benefit programs? Briefly explain?

Diversity compliance

What is not a major benefits planning and design issue? Briefly explain?

Cost savings

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