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PHR Certification > Module 4.2B: Benefits > Flashcards

Module 4.2B: Benefits Flashcards

1
Q

What is indirect compensation?

A

Non-monetary benefits provided to employees in addition to their salaries.

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2
Q

The US federal government requires the following:

A
  • social security/Medicare
  • unemployment insurance
  • worker’s compensation insurance
  • COBRA
  • FMLA
  • PPACA
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3
Q

What is FMLA?

A

employees that have worked for at least one year at an organization and at least 1250 hours during that leave are eligible to take unpaid leave for family or medical reasons and have job protection while they are out.

Protects employees from losing their jobs if they need to care for a family member.

Parents - 12 weeks of unpaid leave and continued healthcare benefits after birth or adoption of child.

The same applies to employees who need to care for a sick parent, spouse, or dependent.

An employee caring for a family member injured during active military duty can take up to 26 weeks.

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4
Q

What is ERISA?

A

Employee Retirement Income Security Act (ERISA) includes many protections for pension and health plan participants and their dependents.

ERISA requirement is a summary plan description that includes policies, eligibility rules, plan sponsors, claim procedures, and more. ERISA also defines vesting, funding, and payout rules.

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5
Q

What is COBRA?

A

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to keep their health insurance for a period of time (18 months) after they lose or quit their jobs or lose eligibility because of reduced hours. They continue to pay the premiums, up to 102%.

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6
Q

What is PPACA?

A

Affordable Care Act (ACA) or Obamacare, the Patient Protection and Affordable Care Act (PPACA) includes rules about offering affordable plans and covering pre-existing conditions and preventive care. Legal challenges to the law are on-going, so HR staff will need to remain vigilant about compliance.

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7
Q

What is Mental Health Parity Act?

A

legislation in 2008, healthcare providers must provide coverage and cannot make annual limits for mental health coverage higher than any other medical or surgical limits

requires health plans to treat mental illnesses the same as physical illnesses. That means that copays should be the same or lower, while dollar and treatment limits for mental health should be the same or higher.

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8
Q

What is HIPPA?

A

Health Insurance Portability and Accountability Act (HIPAA) requires employers and healthcare providers to protect patients’ private health information. It also prohibits discrimination because of an employee’s health status.

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9
Q

In cases where benefits laws conflict with one another, an employer should honor the:

A

statute most beneficial to the employee

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10
Q

Which of the following employees are covered by FMLA after 1 year of employment?

A

Temporary employees who have worked more than 1250 hours

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11
Q

Continuation of coverage under COBRA should be extended to employees who:

A

lose coverage due to a personal LOA

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12
Q

What are nondiscretionary benefits?

A

Benefits mandated by law

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13
Q

What is HMO?

A

Health Maintenance Organization - network of physicians paid per patient rather than for treatments and visits. Employees cannot go out of network for coverage

It is a relatively low cost and doesn’t require claims paperwork.

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14
Q

What is PPO?

A

Preferred Provider Organization - network of healthcare providers that negotiate discounted fees with employers and employers guarantee certain number of patients. Rates are cheaper than if employees go outside of network.

It is a relatively low cost and doesn’t require claims paperwork.

managed-care plans that aim to provide cost-effective, medically necessary services.

more choices because members can elect in-network providers and facilities at a discount or out-of-network providers for a higher cost.

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15
Q

What are consumer-directed care?

A

Health reimbursement accounts (HRA) and health savings accounts (HSA) allow employees to use special savings accounts to pay for medical expenses.
HRA plans, the employer sets aside pretax dollars to pay for employee healthcare.

HSAs, it’s employees who fund and own the savings accounts, which are federal tax exempt, and they must be enrolled in high-deductible health plans.

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16
Q

What is drug, dental, and vision?

A

vary widely in their coverage and costs. For example, some prescription drug plans might cover only generic or formulary drugs or limit pharmacy choices.

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17
Q

What is EAP?

A

Employee assistance programs offer confidential counseling options for both personal and professional concerns.

include legal or financial advice, marriage and family counseling, stress management, and other mental health care.

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18
Q

What are cafeteria plans?

A

Benefits program employees choose from array of healthcare benefits that are most important to them and their families and pay for them with benefit credits

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19
Q

What is FSA?

A

Flexible spending accounts (FSA) enable employees to set aside a certain amount of pretax income each year to use for healthcare, dependent care, and transportation.

funds are not taxable, making them desirable for both employee and employer.

20
Q

The best method of controlling indirect compensation is to:

A

manage benefit costs

21
Q

Employers are required to grant which of the following employees FMLA leave with the understanding that the employee will be reinstated after the leave?

A

An employee of organization with 300 employees who wants to stay home during summer with newly adopted son, age 7

22
Q

Which of the following is NOT an advantage of Section 125 flexible benefit plans?

A

Employees can change elections whenever they wish

23
Q

What is Open Enrollment?

A

Period that happens once a year when employees can enroll in health insurance plans or change their current coverage for any reason without having life-changing event.

24
Q

An employee can change a Section 125 deduction during the plan year in which of the following circumstances?

A

Qualifying change in family status occurs within 30 days

25
Q

What is a Defined Benefit?

A

Retirement plan where benefit is calculated with factors such as salary history, age, and length of service such as pension (employer pays all the money)

Employers fund the plan and employees receive a predetermined payout at retirement

Payments reflect length of service and earnings. These are usually called pensions and are becoming rare.

26
Q

What is a Defined Contribution?

A

Reitrement plan where employees contribute fixed amount to their paychecks (pre-tax) like 401K (employees pay most of money but employers match certain percentage)

27
Q

What is a 401K?

A

Defined contribution retirement plan that employers sponsor; employees contribute pretax income; employers provide match

28
Q

What is Profit Sharing?

A

Uses a formula and vesting schedule to distribute company profits to employee retirement accounts

29
Q

What is an IRA?

A

Individual Retirement Account solely funded by employee, but employers can help by withholding and depositing contributions from employee’s paycheck to account

allows people to contribute money to save for retirement (tax free or deferred) 3 types - traditional, Roth, and rollover

30
Q

What is Telecommuting?

A

Some employees split time on and off site and others might do all work remotely (even from across the globe)

31
Q

What is Flexible Schedule?

A

Four 10-hour days or nine 8- and 9-hour days over 2 weeks gives employees an extra day off

32
Q

What is Paid Time Off?

A

Vacation, sick and personal days can be combined into the more flexible “paid time off” or kept as separate categories

33
Q

What is on-site child care center?

A

Employees save time and stress with fewer stops in their day. Child care might be provided for free or at a discount.

34
Q

What is Health club membership or on-site fitness center?

A

Promote good health and stress management with fitness options. On-site gyms offer convenience and flexibility.

35
Q

What is vacation and sick leave?

A

Vacation time allows employees to simply get away from work
U.S. workers typically get two weeks of paid vacation per year;
Sick leave encourages employees to stay home when they or family members are ill, which can prevent the spread of germs at the workplace.

36
Q

What is military leave?

A

Workers returning from active military duty must be rehired at the pay level and seniority they would’ve had if they weren’t absent.

maintain healthcare benefits for employees away on active duty.

37
Q

What is short and long term disability?

A

Short-term disability (STD) picks up where sick leave or PTO leaves off. Short-term disability usually doesn’t cover all of the employee’s lost pay—it is only a portion of their salary.

Long-term disability (LTD) kicks in after short-term disability coverage ends. Those receiving LTD benefits are usually placed on inactive status or are not considered employed at their organization anymore.

38
Q

What are paid holidays?

A

Most organizations offer six to 12 paid holidays a year, usually including New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

39
Q

What is Tuition Reimbursement?

A

Tuition reimbursement offers an incentive for employees to take classes in their field to further their knowledge or position themselves for a promotion.

40
Q

What are Service Programs?

A

Volunteering programs underscore the organization’s values, improve employee engagement, and provide alternative outlets for employees’ skills and talents.

  • Paid or unpaid time off for community service
  • Company-led service projects
  • Employee giving through payroll
  • Contribution match programs
41
Q

Which of the following is a nondiscretionary benefit?

A

worker’s comp insurance

42
Q

In an HMO insurance plan, the utilization is controlled by the:

A

primary physician

43
Q

How long must someone be employed before eligible for protection under FMLA?

A

12 months

44
Q

Which health benefit is characterized by in-network and out of network providers?

A

PPO

45
Q

Which of the following do employers sometimes combine into “paid time off”?

A

All of the above

46
Q

FMLA leave entitlement for the birth of a child ends 12 months after the:

A

actual birth

47
Q

An employee drops their spouse from health care coverage during open enrollment in anticipation of a divorce. The employer must offer COBRA coverage to the spouse from the:

A

date of the divorce

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