CBP Health and Welfare Benefits 2 — Questions and Answers
Question 1: What is the primary purpose of a Flexible Spending Account (FSA)?
- To invest in mutual funds tax-free
- To pay for qualified medical and dependent care expenses with pre-tax dollars (Correct answer)
- To supplement Social Security retirement income
- To fund life insurance premiums
Correct answer: To pay for qualified medical and dependent care expenses with pre-tax dollars
FSAs allow employees to set aside pre-tax dollars to pay for eligible healthcare and dependent care expenses, reducing taxable income.
Question 2: Which ACA provision requires large employers (50+ FTEs) to offer affordable coverage or face a penalty?
- Individual Mandate
- Employer Shared Responsibility Provision (Correct answer)
- Essential Health Benefits rule
- Minimum Essential Coverage rule
Correct answer: Employer Shared Responsibility Provision
The Employer Shared Responsibility Provision (Pay or Play) requires applicable large employers to offer affordable minimum-value coverage or pay an excise tax.
Question 3: Under the Mental Health Parity and Addiction Equity Act (MHPAEA), mental health benefits must be offered at parity with:
- Dental benefits
- Vision benefits
- Medical and surgical benefits (Correct answer)
- Pharmacy benefits
Correct answer: Medical and surgical benefits
MHPAEA requires that mental health and substance use disorder benefits be no more restrictive than the predominant financial requirements applied to medical and surgical benefits.
Question 4: What is the IRS limit category for HSA contributions called when both employee and employer contributions are counted together?
- Employee elective deferral limit
- Annual contribution limit (Correct answer)
- Out-of-pocket maximum
- Aggregate deductible
Correct answer: Annual contribution limit
The IRS sets an annual contribution limit for HSAs that applies to the combined total of both employer and employee contributions.
Question 5: Which type of health plan typically features a network of providers and requires referrals to see specialists?
- PPO
- HMO (Correct answer)
- EPO
- HDHP
Correct answer: HMO
HMOs (Health Maintenance Organizations) require members to select a primary care physician who coordinates care and provides referrals to in-network specialists.
Question 6: Which federal law requires employers with 15 or more employees to provide equal health benefits to employees with disabilities?
- FMLA
- ADA (Correct answer)
- Title VII
- ADEA
Correct answer: ADA
The Americans with Disabilities Act (ADA) prohibits discrimination in employee benefits, including health insurance, against qualified individuals with disabilities.
CBP Health and Welfare Benefits 2
What is the primary purpose of a Flexible Spending Account (FSA)?