Question 1

Alex was hired on April 1, but did not elect benefits. When he calls the service center on May 15 he asks what coverage, if any, he has. You tell him:

Accepted Answer

Basic Life Insurance in the amount of his annual salary and Long Term Disability

Answer

No coverage at this point

Answer

Short term and Long Term Disability Only

Answer

Vision and Dental coverage Only

Question 2

Maria is an exempt employee and according to her plan, her benefits begin on the date of hire. She wants to know how she will pay for her medical and dental benefits. You explain:

Accepted Answer

Premiums or contributions for medical and dental will be deducted from her paycheck on a pre-tax basis.

Answer

Premiums for medical will be deducted from her paycheck on a pre-tax basis, while premiums for dental will be deducted on a post-tax basis.

Answer

The company covers all of her cost for medical and dental insurance.

Answer

Premiums or contributions will be invoiced on a monthly basis.

Question 3

Ted has a domestic partner whom he wants to cover with his employer-sponsored medical plan. How is covering a domestic partner different from covering a spouse?

Accepted Answer

The employer’s share of the cost of medical coverage for his partner is recorded as imputed income and is taxed.

Answer

Ted is restricted to the Consumer Choice plans if he wants to cover a domestic partner.

Answer

There is no coverage for Domestic Partners for any HDHP.

Answer

The employer doesn’t contribute to the coverage, so Ted has to pay 100% of the cost of
the dependent’s coverage.

Question 4

When a newly-hired employee enrolls a dependent in coverage, when does dependent coverage typically begin?

Accepted Answer

On the same day as the employee’s coverage begins.

Answer

Always on the date the employee was hired.

Answer

30 days after the employee enrolls in the coverage.

Answer

90 days after the start of employment.

Question 5

Mark is a new hire who elects the Classic PPO plan for himself and his wife. Mark also has a 22 year old son living at home while going to school. His parents support him but Mark will not add the son to the medical plan. If Mark elects a HCFSA, which members of his household
may use it?

Accepted Answer

Mark, his wife, and his son

Answer

Only Mark and his wife

Answer

Only Mark

Answer

No one is covered.  He does not qualify for a HCFSA.

Question 6

Gary is electing STD. In considering the different options, he asks what a 30-day waiting period means. You explain:

Accepted Answer

From the time the disability is certified until the plan pays benefits is 30 days.

Answer

From the time you enroll in benefits, it takes 30 days for them to be active.

Answer

During the first 30 days after the election, you must submit evidence of insurability.

Answer

Once Gary is eligible, he will have to wait an additional 30 days before he will be able to enroll.

Question 7

Nancy is enrolling in the Consumer 1400 plan covering only herself. She sees that the cost for visiting her primary doctor is 20% after deductible. She wants to know what that will cost her. You tell her:

Accepted Answer

She will pay the full network rate to see her doctor until she has met the $1400 deductible; then she will pay 20% of that rate.

Answer

The network will reimburse Nancy 20% of the total cost once the deductible is met.

Answer

She will pay 20% of the network rate to see her doctor. The deductible doesn’t apply to primary care office visits.

Answer

She will pay the full network rate to see her doctor until she has met the $1400
deductible. Then she will have a $20 copay.

Question 8

Eric is a new hire and wants to elect supplemental life insurance in the amount of $200,000. Eric has a salary of $60,000. What will Eric need to provide to get that level of coverage?

Accepted Answer

Evidence of Insurability

Answer

Must have a certified W-2 form

Answer

Proof of his salary

Answer

Proof of medical coverage

Question 9

Harold has heard about Laser Vision Correction, and asks if the vision plan provides that.  You check the Enrollment Guide and answer:

Accepted Answer

There is a discount for that procedure when using a VSP-contracted facility.

Answer

Lasik is an elective procedure and therefore not covered.

Answer

No, the vision plan only covers glasses and contact lenses.

Answer

There is a $200 copay for that procedure.

Question 10

Linda is interested in a Health Care FSA. She wants to contribute $2,000, but isn't sure she can spend it all. She asks what happens to the unspent balance at the end of the plan year. You explain:

Accepted Answer

Any unspent balance will be forfeited.

Answer

The unspent balance can be carried over into the new plan year.

Answer

The unspent balance can be transferred to a Dependent Care FSA.

Answer

The unspent balance becomes taxable income.

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