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B. Preferred provider organizations
C. Health maintenance organizations
D. Unemployment insurers
54. ______ act like health maintenance organizations in that they prefer that you have a
primary care physician within their medical network and that you go to that primary care
physician before going elsewhere for medical care.
A. Primary care physicians
B. Unemployment insurers
C. Preferred provider organizations
D. Worker’s compensation plans
55. ______ allow the employer and employee to fund an account from which the
employee can pay medical expenses each year with pretax dollars.
A. Health compensation accounts
B. Health savings accounts
C. Unemployment insurers
D. Preferred provider organizations
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56. Federal rules on health savings accounts and medical savings accounts require that
employees who have these accounts also participate in something called a ______.
A. high-deductible health plan
B. preferred provider organization
C. health maintenance organization
D. worker’s compensation plan
57. A ______ is a major medical insurance plan that protects against catastrophic
health-care costs and in most cases is paid for by the employer.
A. high-deductible health plan
B. health maintenance organization
C. worker’s compensation
D. preferred provider organization
58. A ______ is a review of the cost of a program and comparison of program costs with
the rate of the program’s usage by the members of the company.
A. ranking review
B. compensation analysis
C. vesting analysis
D. utilization analysis
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59. Laszlo’s organization provides group health insurance that covers a set percentage
of fees for medical services such as doctors or in-patient care. It allows him to go to any
doctor or provider. His group health insurance is a ______.
A. fee-for-service plan
B. health maintenance organization
C. preferred provider organization
D. health savings account service
60. Tamera’s organization provides group health insurance. She has a primary care
physician who is her first point of contact for all preventative care and routine medical
situations. Her primary care physician can provide her with referrals to specialists, if
needed. However, to be covered, the specialists must be within her plan’s network. Her
group health insurance is a ______.
A. fee-for-service plan
B. health maintenance organization
C. preferred provider organization
D. health savings account service
61. Myra’s organization provides group health insurance. Under her coverage, Myra can
see any physician or go to any medical facility. However, if she goes to a physician or
facility outside those identified by her plan, she will have to pay a larger percentage of
the costs. Her group health insurance is a ______.
A. fee-for-service plan
B. health maintenance organization
C. preferred provider organization
D. health savings account service
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62. Nubia’s organization provides group health insurance. The plan covers “major
medical” costs for each employee in any given year that total more than $10,000. Her
group health insurance is a ______.
A. fee-for-service plan
B. health maintenance organization
C. high-deductible health plan
D. health savings account service
63. A ______ provides the retiree with a specific amount and type of benefits that will be
available when the individual retires.
A. defined benefit plan
B. undefined benefit plan
C. defined contribution plan
D. undefined contribution plan
64. Under a ______ the retiree knows exactly what they are going to receive in benefits
when they retire.
A. undefined benefit plan
B. undefined contribution plan
C. defined benefit plan
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D. defined contribution plan
65. Under a ______ the employee does not know what their retirement benefit will be.
A. utilization analysis
B. defined contribution plan
C. vesting plan
D. defined benefit plan
66. A ______ identifies only the amount of funds that will go into a retirement account,
not what the employee will receive upon retirement.
A. defined benefit plan
B. utilization analysis
C. vesting
D. defined contribution plan
67. In a ______, the amount received upon retirement will depend on the success of the
investment of the retirement funds over the years.
A. utilization analysis
B. vesting
C. defined contribution plan
D. defined benefit plan
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68. The most well-known retirement plan in U.S. companies today is the ______.
A. Variable Pay
B. Vesting
C. Utilization analysis
D. 401(k)
69. Erin knows exactly what benefits she will receive when she retires. She has worked
for the same organization for 20 years and will receive 65% of the average of her two
highest years of pay. Erin’s retirement plan is a ______ plan.
A. defined benefit
B. defined contribution
C. vesting
D. experience
70. Michel puts $17,500 into his 401(k) retirement plan each year. This type of
retirement plan is a ______.
A. defined benefit
B. defined contribution
C. vesting
D. experience
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71. ______ benefits include a group of options such as vacation time/annual leave,
severance pay, personal time off, sick days, and holidays.
A. Workers’ compensation
B. Utilization analysis
C. Vesting
D. Paid time off
72. While not required, many U.S. employers provide employees with some paid
holidays, sick leave, and/or vacation time. These voluntary benefits fall under the
category of ______.
A. paid time off
B. group health insurance
C. employee services
D. retirement plans
73. Many organizations will provide ______ insurance policies to provide for survivors of
an employee who dies while employed by the company.
A. individual term life
B. Social Security
C. group term life
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D. workers’ compensation
74. ______ benefit plans provide employees with several basic options for benefits
packages from which they can select the one that best matches their life and family
circumstances.
A. Singular
B. Vesting
C. Modular
D. Utilization
75. In a ______ plan, there is a base set of benefits, called the core, that are provided to
everyone, and then employees are allowed to choose other options to meet personal
needs and desires.
A. core-minus
B. core-plus
C. core-less
D. core-flex
76. The ______ benefit plans allow employees to choose exactly the set of benefits that
they desire, within specified monetary limitations.
A. full-choice
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B. less-choice
C. non-choice
D. rigid-choice
77. Isobel’s organization offers several sets of benefits. One set would appeal to young
single employees because it provides more paid time off for personal activities and no
reimbursements for childcare expenses. Another set would likely appeal parents with
young children because it does provide childcare reimbursements and other benefits
important to parents such as life insurance. Isobel’s organization is offering a ______
flexible benefits plan.
A. modular
B. core-plus
C. full-choice
D. defined benefit
78. Rachel’s organization offers flexible benefits. Rachel receives some of the same
benefits as everyone else in the organization, such as health, dental, and life insurance.
However, Rachel was also able to add tuition reimbursement and elder care assistance
to her benefits package. Rachel’s organization is offering a ______ flexible benefits
plan.
A. modular
B. core-plus
C. full-choice
D. defined benefit
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79. Chelsea’s organization offers flexible benefits. During the open enrollment period,
Chelsea can choose any benefits she wants. She selects several benefits, including
elder care coverage to help her take care of her mother and extra dental coverage
because she knows her daughter will need braces this year. Chelsea’s organization is
offering a ______ flexible benefits plan.
A. modular
B. core-plus
C. full-choice
D. defined benefit
80. Alexander’s organization offers flexible benefits. The plan has five packages from
which Alexander can choose. His organization is offering a ______ flexible benefits
plan.
A. modular
B. core-plus
C. full-choice
D. defined benefit
81. ______ partners are individuals who are not legally married but who are in a one–to–
one living arrangement similar to marriage.
A. Domestic
B. Extra
C. International
D. Non
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True/False
1. Benefits provide an incentive to employees to continue working for an organization
because they feel as if they are being cared for by the organization.
2. Social Security is formally called Old-Age, Survivors, and Disability Insurance.
3. Unemployment Insurance is an insurance program designed to provide medical
treatment and temporary payments to employees who cannot work because of an
employment-related injury or illness.
Lussier, Human Resources Management 3e
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4. Minor health condition means an illness, injury, impairment, or physical or mental
condition that involves either inpatient care or continuing care for at least 3 consecutive
days.
5. Patient Protection and Affordable Care Act is a law that requires employers to offer to
maintain health insurance for a period of time on individuals who leave their
employment.
6. Preferred provider organizations are health-care plans that provides both health
maintenance services and medical care as part of the plan.
7. Health savings accounts allow the employer and employee to fund an account from
which the employee can pay medical expenses each year with pretax dollars.
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8. A high-deductible health plan is a major medical insurance plan that protects against
catastrophic health-care costs and in most cases is paid for by the employer.
9. Modular benefit plans provide the employee with several basic benefits packages
from which the employee can select the one that best matches their life and family
circumstances.
10. In a core-flex plan, there is a base set of benefits, called the core, that are provided
to everyone, and then employees are allowed to choose other options to meet personal
needs and desires.
Essay
Lussier, Human Resources Management 3e
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1. Describe the strategic value of benefits programs to organizations.
2. Describe why benefit programs continue to grow.
3. Describe the three major considerations that need to be taken into account in
providing benefits.
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4. Describe the major components of OASDI and the Medicare program.
5. Describe the statutory requirements around workers’ compensation, unemployment
insurance, and the Family Medical Leave Act.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
6. Describe the statutory requirements around the Patient Protection and Affordable
Care Act, Consolidated Omnibus Budget Reconciliation Act, and Health Insurance
Portability and Accountability Act.
7. Describe the main categories of voluntary benefits available to organizations.
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8. Describe an organization’s options when providing flexible benefit plans.
9. Describe why benefit plans need to be communicated to employees.
10. Describe the issue of domestic partner benefits.
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SAGE Publishing, 2019