TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND RETIREMENT PLANNING
11th Edition
College Course Materials
Deanna L. Sharpe, Ph.D., CFP®, CRPC®, CRPS®
Associate Professor
CFP® Program Director
Personal Financial Planning Department
University of Missouri-Columbia
Please Note: Correct answers for each question are indicated in bold type. After each question,
the number of the page containing information relevant to answering the question is given. When
a calculation is necessary or the reasoning behind a given answer may be unclear, a brief
rationale for the correct answer is also given.
Part B: Employee Benefit Planning
Overview
Chapter 30: Designing the Right Health Benefit Plan
True/False
30.1
Traditional health insurance plans are “postpaid” plans.
30.2
“Defined contribution” health plans shift payment and selection features of health insurance
from employers to employees.
30.3
A Health Savings Account (HSA) uses a savings account and insurance to cover health
care needs.
Answers:
30.1 True [p. 267]
30.2 True [p. 269]
30.3 True [p. 269]
Multiple Choice
30.4
In health insurance plan design, which of the following are vitally important aspects of that
design
a.
b.
c.
d.
e.
efficient delivery of benefits
meeting employer’s cost constraints
having employees see the plan in a positive light
all of the above
only a and b
Answer: D [p. 267]
30.5
Which of the following is not a managed health care tool or technique?
a.
b.
c.
d.
e.
reimbursement for out-of-pocket costs
negotiated discounts with health care service providers
quality review
cost sharing with employees
lifestyle management
Answer: A [pp. 268-269]
30.6
Which of the following is true regarding health care costs?
a. health care costs have risen faster than the rate of inflation
b. employers face increasing cost pressures relative to health care costs
c. traditional health care plans allow employers fewer methods of cost control than
managed health care.
d. all of the above
e. only a and b
Answer: D [p. 267]
Application
30.7
The owner of Hearth Home Bakery wants to install a health plan that will place greater
responsibility for maintaining low health care costs directly on employees. The best way of
doing this is for Hearth Home to offer employees
a.
b.
c.
d.
e.
traditional health care insurance
a managed care health plan
a Health Reimbursement Arrangement
a Health Savings Account
prospective pricing on health care
Answer: D [p. 269]
30.8
The owner of Pinnacle Management Services, Inc. wants to provide health benefits for the
executive staff that is over and above the benefits provided for the rank and file employees.
The best way of doing this is for Pinnacle to utililize
a.
b.
c.
d.
e.
traditional health care insurance
a managed care health plan
a Health Reimbursement Arrangement
a Health Savings Account
prospective pricing on health care
Answer: C [p. 269]
30.9
In selecting a managed care plan, Tipton Enterprises wanted to be certain that decisions to
perform a medical or surgical procedure are reviewed by qualified medical providers and
approved before being completed. The health care management tool(s) that Tipton should
be sure is (are) included in a managed care contract is:
a.
b.
c.
d.
e.
peer review
utilization review
quality review
only a or b
only a or c
Answer: D [p. 269]
30.10 The owner of Sierra Sporting Goods encourages her employees to stay healthy. An
employee benefit is an annual membership to the local athletic club. Every year, the store
sponsors a mini-triathlon for area sports enthusiasts and awards a $100 bonus to each
employee who participates and finishes the mini-triathlon and a $250 bonus to any
employee who places in the top three on any race in the mini-triathlon. The health care
management tool(s) that Sierra’s owner is using is (are):
a.
b.
c.
d.
e.
peer review
lifestyle management
cost sharing
a and b
b and c
Answer: B [p. 269]