MGMT 3351 - Ch 10
The Patient Protection and Affordable Care Act of 2010 requires that ________. A. employers offer health insurance to their employees, and if individuals do not have insurance from employers, they should get insurance on their own B. employers provide health-care coverage to employees, even if the employees work fewer than 15 hours a week C. employers are responsible for the safe retirement of their employees if they have worked a minimum of 10 years D. individuals contribute at least 20 percent of their paychecks towards health benefits to avoid a financial penalty E. employers absorb the full cost of catastrophic illnesses of their employees
A.
What can employers do to contain unemployment insurance costs? A. Monitor their reasons for terminating employees B. Only hire highly skilled and well-educated employees C. Only employ part-time hourly employees D. Hire workers based on conditional contracts and stipulations E. Make it a point to lay off workers when they do not need them
A.
What was the motivation behind the Social Security Act? A. Preventing families from becoming financially overwhelmed once unemployed B. Making employers responsible for the well-being of their employees C. Having employers assume the costs of injuries that happen on the job D. Complying with benefits requirements of the U.S. federal government E. Motivating employees to be more productive at work
A.
Coinsurance refers to ________. A. when the employer and the employee split equally the medical expenses incurred by the employee B. the percentage of the covered expense that the insured person will pay C. where the employer is responsible for 25 percent of incurred medical expenses of the employee D. the amount a policy holder must pay before insurance benefits are applicable E. the maximum amount a policy holder must pay out of pocket
B.
How can employers reduce the costs associated with required benefits? A. Employers should refuse to offer benefits to employees if the costs become too great. B. Employers should try to reduce the chances of workers filing compensation claims. C. Employers should make the process of filing compensation claims difficult. D. Employers should offer only limited types of benefits. E. Employers should try to hire as few employees as possible.
B.
What are the categories of legally required benefits? A. Unemployment insurance, medical insurance, and disability insurance B. Social Security programs, workers' compensation, unpaid family and medical leave, and health insurance C. Retirement benefits, unemployment insurance, and disability insurance D. Medical insurance, disability insurance, and retirement benefits E. Life insurance, disability insurance, and unpaid family and medical leave
B.
What change occurred with the passing of the PPACA? A. Employers can now purchase cheaper insurance plans with lower maximum benefits limits. B. Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost. C. There are now limits to benefits for health insurance plans. D. Employers are required to self-fund the insurance plans they provide. E. Coinsurance for employees is no longer an option.
B.
Which of the following is a stipulation for fee-for-service plans? A. Fee-for-service plans require the employer to pay all costs up front for employees. B. Fee-for-service plans have no preexisting condition clauses. C. Fee-for-service plans require that insured employees are of a certain age. D. Fee-for-service plans require employers to pay 100 percent of covered expenses. E. Fee-for-service plans do not have a set deductible for all insurance plans.
B.
Which of the following statements about the Social Security system is TRUE? A. Self-employed individuals have to pay only 15 percent of the amount required for the Medicare Part A program. B. Retirement benefits of today's retirees are funded by the current workforce and their employers. C. Not all payroll amounts and wages are taxed under the Social Security system. D. The Medicare tax is subject to a wage base. E. The Social Security system is not a pay-as-you-go system.
B.
With regard to FUTA, the amount that an employer contributes is equal to ________ of the first ________ earned by each employee. A. 6.2 percent; $40,900 B. 6.2 percent; $7,000 C. 2 percent; $40,900 D. 5 percent; $7000 E. 5.2 percent; $5,500
B.
How are HMO and fee-for-service plans similar? A. Both require the use of medical specialists B. Both require a primary care physician to determine the need for a specialist. C. Both have out-of-pocket maximums and coinsurance. D. Both offer prepaid services. E. Both have low coinsurance rates.
C.
How are HMOs and fee-for-service plans the same? A. They both have low coinsurance rates. B. They both use primary care physicians as a cost-control measure. C. They both have out-of-pocket maximum limits. D. They both operate on a reimbursement basis. E. They both offer prepaid services.
C.
How did providing subsistence payments to those who were unemployed or injured help boost the U.S. economy, especially after the Great Depression? A. Subsistence payments helped the unemployed become retrained to find work. B. Subsistence payments gave subsidies to employers to keep the economy strong and growing. C. Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat. D. Subsistence payments went into funding programs that would help unemployed individuals find work. E. Subsistence payments helped unemployed workers start establishing their own businesses with the money they received.
C.
Individuals who meet the eligibility criteria for unemployment benefits receive ________ benefits. A. monthly B. quarterly C. weekly D. daily E. yearly
C.
One of the provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) is that _________. A. employees cannot make claims against Social Security benefits if they continue to receive health care coverage from their employer B. employees must take mandatory time off for a period of six months if diagnosed with a life-threatening disease C. it protects the transfer, disclosure, and use of health care information D. employees, upon changing employment, cannot have health care coverage for a dependent from the new employer if the dependent has a life-threatening disease E. employees must disclose their health history to the HR office before an employment offer is made
C.
What brought about the earliest social insurance programs? A. The Great Depression and governmental regulation mandating benefits be given to employees B. Workers demanding better treatment and the rapid growth of industrialization C. The rapid growth of industrialization and the Great Depression D. Workers demanding better treatment and businesses wanting an advantage over their competition E. Governmental regulation requiring benefits be given to employees and the rapid growth of industrialization
C.
What entities are typically exempt from FUTA? A. International companies B. Private businesses with diversity hiring practices C. State and local governments and not-for-profit companies D. Any business that employs fewer than 20 employees E. Not-for-profit companies and for-profit companies that donate funds
C.
What is a key difference between a health reimbursement account (HRA) and a flexible spending account (FSA)? A. HRAs require employees to forfeit the leftover amount within the account at the end of the year, but in an FSA account, the amount can be rolled over. B. Employees contribute to HRA accounts, but not to FSA accounts. C. Employees partially fund their FSAs, but they are required to fully fund HRA accounts. D. For FSAs, employees can make contributions, but in HRAs, they cannot E. FSAs allow employees to carry over unused amounts, but HRAs do not.
D.
What is a key principle of workers' compensation? A. For injuries and accidents that occur on the job, medication costs are paid by the employer but any hospitalization costs are paid by the worker. B. For injuries and accidents that occur on the job, employees must assume the costs. C. For injuries and accidents that occur on the job, the labor union and the employer must equally share the medical costs. D. For injuries and accidents that occur on the job, employers must assume the costs. E. For injuries and accidents that occur on the job, employers and employee assume the costs equally.
D.
What is a notable drawback to flexible spending accounts (FSAs)? A. Hourly employees are not allowed to contribute to an FSA. B. They motivate employees to be less vigilant regarding medical expenses. C. They place a limit on the amount an employee can allocate to an FSA. D. An employee must use the accumulated money in the account by a specific time or it will be lost. E. Employees can only use money on themselves, not their dependents.
D.
What programs did the Social Security Act establish? A. Benefits for tuition reimbursement and professional accreditations B. Vacation, sick leave, and personal day benefits C. Profit-sharing, stock bonus, and employee ownership plans D. Unemployment insuranceand old Old age, Survivor, and disability insurance (OASDI) E. Employee ownership plans, unemployment insurance, and Medicare
D.
Which of the following statements about coverage for disability benefits is FALSE? A. The disability must be expected to last for at least one year or to result in death. B. Disability is based on the inability to do the original work assigned or any type of new work because of the medical condition of the disabled worker. C. Young workers need fewer quarters of coverage because they have had fewer years to accumulate them. D. Younger workers need more quarters of coverage because of their young age and inexperience. E. Becoming disabled at 29 would mean needing credit for four years of employment.
D.
Who is exempt from COBRA? A. Employers who agree never to disclose or transfer their employees' health information B. Employers and government plans that guarantee coverage for an employee's dependents C. Employers who agree to provide excellent health benefits to their employees D. Companies with fewer than 50 employees E. Companies with fewer than 20 employees, church plans, and plans maintained by the U.S. government
E.
After states have paid into the central unemployment tax fund, what happens to the money? A. The money is distributed to not-for-profit organizations dedicated to helping the unemployed. B. The federal government uses the funds for the training and development of federal employees. C. The unemployed are able to ask for withdrawals from the central unemployment tax fund to help them buy whatever they need. D. The federal government puts the money into an emergency account to be used only in times of severe need. E. The federal government invests the money and disburses it back to the states as needed.
E.
Under the principle of social adequacy, benefits are designed to _____. A. reward those who show superior interpersonal skills in the workplace B. help employees who have no health issues to remain active and fit C. help employees feel better about their total compensation package D. provide motivation for superior performance by employees E. provide subsistence income to all beneficiaries regardless of job performance
E.
What was a common occurrence during the early twentieth century that led to workers' compensation insurance? A. Industrial hygiene not being a concern for many employers, which caused work-related illnesses B. Many employers not allowing regular work breaks, which caused workers to have fatigue-related illnesses C. Employers demanding long working hours, which caused health issues for workers D. Workers being required to handle harmful chemicals, which caused many health concerns E. Industrial accidents and occupational illnesses among workers
E.
COBRA was designed to ________. A. allow employees to continue with their medical coverage through their employer temporarily B. prevent employees from continuing their medical coverage through their employer for an extended period of time if coverage must discontinue because of layoffs C. set limits on the amount of time that health plans and insurance issuers may impose pre-existing health conditions D. guarantee employees' health insurance coverage under a different employer's health plan should they choose to leave their previous employer's group health plan E. protect the transfer of health care information
A.
Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation coverage? A. 102 percent of the cost of health expenses incurred by the employee B. 102 percent of the cost of the coverage of the plan C. 36 percent of the cost of the coverage of the plan D. 50 percent above the cost of the coverage of the plan E. 90 percent above the cost of the coverage of the plan
B.
How long can individuals have insurance coverage under COBRA? A. 1 year B. 18 months C. 28 months D. 3 months E. 3 years
B.
What is a short term disadvantage of legally required benefits? A. Employers are only allowed to contribute so much to any one benefits program. B. Employers receive no tax breaks. C. Employers must make substantial financial contributions. D. Employees are not given the option of full-time work. E. Employees receive compensation even after employment with their company has ended.
C.
Which of the following is NOT a stipulation in fee-for-service plans? A. Maximum benefit limits B. Coinsurance C. Restrictions on choice of health care providers D. Out-of-pocket maximums E. Pre-existing condition clauses
C.
If you are self-employed, what does the Self-Employment Contributions Act (SECA) require you to do? A. Design and implement health and fitness programs for your workers B. Contribute equally to your fund and your employees' funds C. Provide facilities that support the ideal working conditions to minimize chances of employee injuries D. Contribute to Medicare and OASDI at a higher tax rate E. Partner with nonprofit companies to reduce tax burdens
D.
