CBP Benefits Administration and Strategy 1

Question 1

Which benefits administration model involves an employer contracting with an outside firm to manage all or most HR and benefits functions?

Accepted Answer

Business process outsourcing (BPO)

Answer

Shared service center

Answer

Self-administration

Answer

Insured arrangement

Question 2

What is the purpose of a benefits needs assessment?

Accepted Answer

To gather employee preferences and identify gaps between current offerings and workforce needs

Answer

To determine COBRA election rates

Answer

To calculate the actuarial value of the benefit plan

Answer

To compare the plan's costs to PBGC premiums

Question 3

What is a 'benefit communication strategy' primarily designed to accomplish?

Accepted Answer

Ensure employees understand, appreciate, and effectively use their benefits

Answer

Reduce COBRA elections by discouraging departing employees

Answer

Minimize the number of employees who enroll in costly plans

Answer

Satisfy IRS reporting requirements

Question 4

In a self-funded health plan, who bears the risk of high claims costs?

Accepted Answer

The employer

Answer

The insurance carrier

Answer

The employee

Answer

The state insurance guaranty fund

Question 5

What is stop-loss insurance in the context of a self-funded health plan?

Accepted Answer

A reinsurance product that protects the employer from catastrophic or unexpectedly high claims

Answer

Insurance that stops employees from overusing benefits

Answer

A state-mandated reserve requirement for self-funded plans

Answer

COBRA coverage for terminated employees

Question 6

Which metric measures the proportion of an employer's benefits costs relative to total compensation to assess benefits investment?

Accepted Answer

Benefits as a percentage of payroll

Answer

Benefits replacement ratio

Answer

Benefits cost per employee per year

Answer

Plan funding ratio