CBP Benefits Administration and Strategy 2

Question 1

What is a 'private exchange' in the context of employer-sponsored benefits?

Accepted Answer

An employer-sponsored or vendor-operated online platform where employees choose benefits from multiple carriers using defined employer contributions

Answer

A government-operated health insurance marketplace under the ACA

Answer

A COBRA continuation market for terminated employees

Answer

A reinsurance pool for small employers

Question 2

What is the strategic value of a 'defined contribution' approach to benefits?

Accepted Answer

It gives the employer cost certainty by providing a fixed dollar amount while employees choose their own benefits

Answer

It guarantees a specific benefit level for every employee

Answer

It eliminates the need for a benefits administrator

Answer

It replaces all benefit programs with cash compensation

Question 3

Which technology system serves as the single source of truth for employee benefit elections, eligibility, and enrollment data?

Accepted Answer

Benefits Administration System (BAS) or HRIS

Answer

Payroll system

Answer

LMS (Learning Management System)

Answer

ERP financial system

Question 4

What is the primary risk of poor data quality in benefits administration systems?

Accepted Answer

Incorrect eligibility, coverage, or premium data leading to claim denials, compliance failures, and financial errors

Answer

Employees receiving more benefits than they paid for

Answer

Slower open enrollment processing times

Answer

Higher ACA reporting fees

Question 5

What is a 'dependent eligibility audit' used for in benefits management?

Accepted Answer

Confirming that individuals enrolled as dependents on the health plan actually qualify under plan rules

Answer

Verifying that employees meet the minimum hours for benefits eligibility

Answer

Auditing the plan's investment managers

Answer

Reviewing the insurance carrier's claim payment accuracy

Question 6

Which of the following best describes the role of a Third-Party Administrator (TPA) in a self-funded health plan?

Accepted Answer

Processes claims, manages provider networks, and handles plan administration on behalf of the self-funded employer

Answer

Acts as the insurance carrier and bears claims risk

Answer

Provides actuarial projections for the annual plan renewal

Answer

Manages the employer's 401(k) plan investments