CBP Health and Welfare Benefits 3

Question 1

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

Accepted Answer

Employer contributions only

Answer

HRAs are employer-funded accounts used to reimburse employees for qualified medical expenses; employees cannot contribute to an HRA.

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

Adverse selection occurs when sicker or higher-risk individuals are more likely to enroll in comprehensive plans, driving up costs for those plan options.

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

The ACA requires insurers and plan administrators to provide an SBC — a standardized, plain-language summary of plan benefits and coverage — to enrollees.

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

The Newborns' Act requires group health plans to cover at least a 48-hour hospital stay following a vaginal delivery and 96 hours after a cesarean section.

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

Coinsurance is the percentage of covered medical costs the insured pays after satisfying the plan deductible, with the plan paying the remaining percentage.

CBP - Certified Benefit Professional Practice Test

CBP - Certified Benefit Professional Practice Test

CBP Health and Welfare Benefits 3