CCP Benefits Design & Administration 2

Question 1

Under the Mental Health Parity and Addiction Equity Act (MHPAEA), employer-sponsored health plans must ensure that mental health and substance use disorder benefits are:

Accepted Answer

No more restrictive than medical/surgical benefits

Answer

MHPAEA requires that financial requirements and treatment limitations for mental health/substance use disorder benefits be no more restrictive than those applied to comparable medical and surgical benefits.

Question 2

What is a key advantage of a defined contribution plan over a defined benefit plan from an employer's perspective?

Accepted Answer

Investment risk is transferred to the employee

Answer

In a defined contribution plan, the employer's obligation ends with making contributions; employees bear the investment risk, which reduces the employer's long-term liability.

Question 3

Which approach to benefits benchmarking compares an organization's benefit costs and offerings against competitors in the same industry and labor market?

Accepted Answer

Total compensation benchmarking

Answer

Total compensation benchmarking includes salary plus all benefits, allowing organizations to assess competitive positioning across all components of the rewards package.

Question 4

Which federal law governs the portability, nondiscrimination, and renewability provisions for group health insurance?

Accepted Answer

HIPAA

Answer

HIPAA (Health Insurance Portability and Accountability Act) established rules for health coverage portability, limits on pre-existing condition exclusions, and nondiscrimination in group health plans.

Question 5

In a self-funded health plan, which financial tool does an employer typically purchase to limit liability for catastrophic individual claims?

Accepted Answer

Stop-loss insurance

Answer

Stop-loss insurance protects self-funded employers by reimbursing claims that exceed a specified threshold (specific stop-loss) or aggregate annual claims beyond a set amount.

(CCP) Certified Compensation Professional Practice Test

(CCP) Certified Compensation Professional Practice Test

CCP Benefits Design & Administration 2