CBP Benefits Administration and Strategy

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

Business process outsourcing (BPO) in benefits administration involves contracting an external vendor to manage benefits enrollment, eligibility, COBRA, and related functions on the employer's behalf.

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

A benefits needs assessment surveys employees and analyzes workforce demographics to understand what benefits are most valued, identify gaps, and guide plan design decisions.

Question 3

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

Accepted Answer

Ensure employees understand, appreciate, and effectively use their benefits

Answer

An effective benefits communication strategy uses multiple channels and plain language to help employees make informed benefit elections and fully utilize the value of their benefits package.

Question 4

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

Accepted Answer

The employer

Answer

In a self-funded (self-insured) plan, the employer assumes financial responsibility for paying employee health claims out of its own funds rather than paying fixed premiums to an insurer.

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

Stop-loss insurance (excess loss insurance) protects self-funded employers by reimbursing claims that exceed a specified attachment point, either per individual (specific) or in aggregate.

CBP - Certified Benefit Professional Practice Test

CBP - Certified Benefit Professional Practice Test

CBP Benefits Administration and Strategy