CPC Employee Benefits Law & Regulatory Updates 1

Question 1

Which federal law primarily regulates employee benefits plans?

Accepted Answer

ERISA

Answer

The Employee Retirement Income Security Act (ERISA) of 1974 is the foundational federal law governing most private-sector employee benefit plans. It sets minimum standards for pension and health plans, protecting participants and beneficiaries by requiring fiduciaries to act prudently and in their best interest. ERISA's comprehensive framework addresses reporting, disclosure, and fiduciary responsibilities.

Question 2

What does COBRA provide to employees?

Accepted Answer

Continuation of health insurance

Answer

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods. This continuation coverage is available under specific circumstances, such as job loss, reduction in hours, or other qualifying events, ensuring a temporary bridge for health coverage.

Question 3

Which law requires parity between mental health and physical health benefits?

Accepted Answer

MHPAEA

Answer

The Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008 requires group health plans and health insurance issuers to ensure that financial requirements and treatment limitations for mental health or substance use disorder benefits are no more restrictive than those for medical/surgical benefits. This ensures equal access to care for mental and physical health conditions, preventing discrimination in coverage.

Question 4

What does HIPAA regulate regarding employee benefits?

Accepted Answer

Health information privacy

Answer

The Health Insurance Portability and Accountability Act (HIPAA) primarily regulates the privacy and security of protected health information (PHI). In the context of employee benefits, it sets standards for how health plans and their business associates must handle and protect individuals' medical records and other health information. HIPAA also includes provisions for health insurance portability.

Question 5

What is the purpose of the Affordable Care Act (ACA)?

Accepted Answer

Expand healthcare coverage

Answer

The Affordable Care Act (ACA), signed into law in 2010, aimed to expand access to affordable health insurance coverage for millions of Americans. It achieved this through measures like establishing health insurance marketplaces, expanding Medicaid eligibility, and implementing regulations that prevent insurers from denying coverage based on pre-existing conditions. The ACA sought to improve the quality and affordability of health insurance.

(CPC) Certified Pension Consultant Practice Test

(CPC) Certified Pension Consultant Practice Test

CPC Employee Benefits Law & Regulatory Updates 1