CBP Health and Welfare Benefits 3

Question 1

An HRA (Health Reimbursement Arrangement) is funded exclusively by:

Accepted Answer

Employer contributions only

Answer

Employee payroll deductions

Answer

Employee after-tax contributions

Answer

Joint employee-employer contributions

Question 2

What does the term 'adverse selection' mean in the context of health benefit plan design?

Accepted Answer

Higher-risk individuals disproportionately enrolling in richer benefit options

Answer

Employers choosing the lowest-cost carrier

Answer

Employees selecting out-of-network providers

Answer

Insurers denying claims for pre-existing conditions

Question 3

Which document must employers provide to employees describing the summary of benefits and coverage under a health plan?

Accepted Answer

Summary of Benefits and Coverage (SBC)

Answer

Form 5500

Answer

Summary Plan Description (SPD)

Answer

Certificate of Coverage

Question 4

Under the Newborns' and Mothers' Health Protection Act, group health plans must cover hospital stays for normal delivery for at least:

Accepted Answer

48 hours

Answer

24 hours

Answer

36 hours

Answer

72 hours

Question 5

Which cost-sharing feature requires the insured to pay a fixed percentage of covered medical costs after meeting the deductible?

Accepted Answer

Coinsurance

Answer

Copayment

Answer

Deductible

Answer

Premium

Question 6

What is the COBRA qualifying event when a covered employee becomes entitled to Medicare?

Accepted Answer

For the employee's spouse and dependent children only

Answer

It is not a qualifying event

Answer

Only for the employee, not dependents

Answer

For the employee and all covered dependents