CBP Health and Welfare Benefits 1 — Questions and Answers
Question 1: Under the ACA, what is the minimum value threshold for employer-sponsored health plans?
- 50%
- 60% (Correct answer)
- 70%
- 80%
Correct answer: 60%
The ACA requires employer-sponsored plans to cover at least 60% of the total allowed costs of benefits to satisfy minimum value requirements.
Question 2: Which federal law governs continuation of health coverage after a qualifying event such as job loss?
- ERISA
- HIPAA
- COBRA (Correct answer)
- FMLA
Correct answer: COBRA
COBRA (Consolidated Omnibus Budget Reconciliation Act) requires group health plans to offer continuation coverage to qualified beneficiaries after a qualifying event.
Question 3: What is the maximum COBRA continuation period for an employee who loses coverage due to voluntary termination?
- 12 months
- 18 months (Correct answer)
- 24 months
- 36 months
Correct answer: 18 months
Employees who lose coverage due to termination or reduction in hours are entitled to up to 18 months of COBRA continuation coverage.
Question 4: Which account type allows employees to pay for qualified medical expenses with pre-tax dollars and rolls over unused funds?
- FSA
- HSA (Correct answer)
- HRA
- MSA
Correct answer: HSA
Health Savings Accounts (HSAs) allow pre-tax contributions that roll over year to year and are only available to those enrolled in a High-Deductible Health Plan.
Question 5: Under HIPAA, a pre-existing condition exclusion period for group health plans may not exceed how many months?
- 3 months
- 6 months
- 12 months (Correct answer)
- 18 months
Correct answer: 12 months
HIPAA limits pre-existing condition exclusion periods to 12 months (18 months for late enrollees) for group health plans.
Question 6: Which term describes the amount an insured must pay out-of-pocket before the health plan begins paying covered expenses?
- Premium
- Copayment
- Coinsurance
- Deductible (Correct answer)
Correct answer: Deductible
A deductible is the fixed amount the insured pays for covered services before the insurance plan starts to pay.
CBP Health and Welfare Benefits 1
Under the ACA, what is the minimum value threshold for employer-sponsored health plans?