Quiz 10: Employer-sponsored Retirement Plans And Health Insurance Programs

Companies establish retirement plans following which of these three design configurations?

A new employee comes into your office and asks you how many hours a year he has to work to qualify as a year towards his vesting requirements. What would you tell him?

What specifies the rate at which participants accumulate benefits?

These represent a series of payments for the life of the participant and beneficiary.

What type of retirement plan is a 401(k)?

What type of pension plan commonly includes profit-sharing plans, stock bonus plans, and employee stock ownership plans?

This type of defined contribution plan, also known as a CODA, permits only private sector or tax-exempt employers' employees to tax defer part of their compensation to the trust of a qualified plan.

Which of the following is associated with 401(k) plans?

A company uses graduated first-dollar-of-profits formula for their profit-sharing plans. They choose to share 4% of the first $10 million of after-tax profits and 7% of the after-tax profits in excess of that level. Last year if this company's after-tax profit were $15 million, how much of this profit would be distributed to the employees?

Your company asked you to come up with a contribution plan that invests the contributions in company securities and distributes the payouts in stock instead of cash. Which plan would you suggest they use?

Which of the following represents the most approximate percentage for private sector employees who have access to at least one employer-sponsored health insurance program in 2010?

These types of insurance plans provide protection against health care expenses in the form of cash benefits paid to the insured, or directly to the provider after the services are rendered.

Which of the following is NOT a benefit covered by fee-for-service plans?

What are the two types of fee-for-service plans?

This term refers to the percentage of the health bill the insured employee is required to pay.

What is coinsurance?

This is the condition for which medical advice, diagnosis, care, or treatment was received or recommended during a designated period prior to coverage.

What is another name for health maintenance organizations (HMOs)?

Common HMO copayment amounts for each doctor's visit vary between?

According the provisions in her health insurance plan with Get Well Insurance, Ursula's coinsurance payment would be $50 if she goes to Dr. Kitt, but will only be $25, if she goes to Dr. Matthew. She probably belongs to what type of insurance plan?

In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians, paying more for the choice?

These types of insurance plans are set up to cover things like dental care, vision care, and prescription drugs.

Marty's employer has a prescription drug plan that will only make him pay 20% of cost of his prescription, if he goes only to certain pharmacies. What type of prescription drug plan does he have?

Mia has Parkinson's disease, but is on an insurance plan that enables her to have the drugs shipped to her house. She is probably on which type of prescription drug plan?

What percentage of Americans experience some form of mental illness at least once during their lifetime?

Jose invested $6,000 in pre-tax income into this healthcare plan, but lost the $780 left in it at the end of the year, because he didn't use it. What type of plan was it?

This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses, but they will lose the balance not used at year's end.

This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.

Starting January 1, 2004, eligible individuals are allowed to establish HSAs under which law?

Which one of the following is probably the main reason that health reimbursement accounts (HRAs) are particularly appealing to employees with relatively low salaries or hourly wages?

________ plans refer to pension plans that do not meet at least one of the minimum standard provisions.

________ refers to an employee's nonforfeitable rights to pension benefits.

________ plans permit employees to defer part of their compensation to the trust of a qualified defined contribution plan.

Fixed first-dollar-of-profits, graduated first-dollar-of-profits, and profitability threshold formulas establish ________ contributions.

IRS guidelines define ________ plans as "defined benefit plans that define benefits for each employee by reference to the amount of the employee's hypothetical account balance."

________ are nominal payments an individual makes as a condition of receiving services.

________ physicians determine when patients need the care of specialists, and help to control costs by reducing the number of unnecessary visits to specialists.

Under a preferred provider organization (PPO), higher ________ are set for services rendered by nonnetwork providers to discourage participants from using services outside of the network.

According to ________ Act of 2008, a plan must calculate only one deductible for treatment related substance use disorders and medical or surgical benefits.

________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.

Compare and contrast defined contribution plans with defined benefit plans.

Define health insurance concepts such as insurance policy and premium and explain the different types of health insurance programs. What are the differences among these programs?

Compare and contrast commercial insurance (fee-for-service) and self-funded insurance.