What is the primary difference between a Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO)?
Explanation
This question assesses the ability to differentiate between two major types of health insurance plans, HMOs and PPOs, based on their core structural differences regarding provider networks and access to specialists.
Other questions
According to Figure 13-1, what category constitutes the largest portion of legally required benefits as a percentage of employer costs for employee compensation?
What is the primary purpose of unemployment insurance as described in Chapter 13?
According to Chapter 13, on average, how many days of vacation leave do American workers get after one year of employment?
What is a 'pooled paid leave plan' or 'bank' as discussed in the context of sick leave?
What is the primary purpose of Workers' Compensation laws?
Under the Patient Protection and Affordable Care Act, what is the penalty for employers with 50 or more employees who do not offer minimum essential coverage?
What is the primary function of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
Which three types of benefits does Social Security provide?
What is the primary difference between a defined benefit pension plan and a defined contribution pension plan?
What is the function of the Pension Benefits Guarantee Corporation (PBGC)?
What is a common characteristic of an 'early retirement window' arrangement?
What is the primary goal of an Employee Assistance Program (EAP)?
A cafeteria benefits plan is a program where:
What is flextime?
According to the Costco case study, what percentage of health insurance costs does the company pay for its domestic employees?
What is a primary drawback of 'hardship withdrawals' from 401(k) plans, as mentioned in the chapter?
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is primarily concerned with what aspect of employee benefits?
According to the chapter, what is the primary benefit of 'employee leasing' for a small business?
In one survey mentioned in the chapter, what was the estimated annual cost to U.S. employers from absenteeism?
What is a 'compressed workweek'?
In a survey of working couples, what percentage took advantage of flexible hours when they were available?
What is a key provision of the Newborn Mother's Protection Act of 1996?
Which of the following is an example of a 'personal services' benefit an employer might offer?
Under cliff vesting for a pension plan, what is the maximum time an employee must work to acquire a nonforfeitable right to employer matching contributions?
What does 'job sharing' refer to in the context of flexible work arrangements?
What did the Supreme Court's 2013 ruling on the Defense of Marriage Act affect in terms of employee benefits?
What is the key purpose of a Health Savings Account (HSA)?
In a survey of nonmonetary benefits, which of the following was most desired by employees?
What is the primary aim of an 'integrated absence management' program?
According to a survey on page 421, what percentage of unscheduled sick leave absences was attributed to 'entitlement'?
The Employee Retirement Income Security Act of 1974 (ERISA) is primarily designed to:
What is 'work sharing' as a flexible work arrangement?
What is the key feature of a cash balance pension plan?
What is the primary cost-control assumption behind consumer-driven health plans (CDHPs)?
Which of the following is a key feature of a 'core plus option' cafeteria plan?
To be eligible for FMLA leave, an employee must have worked for the employer for at least a total of how many months?
What does a 'total rewards' strategy encompass?
According to the chapter, what is one of the main policy issues an employer must address when offering vacation and holiday benefits?
What is the maximum number of employees a business can have and still be eligible for a SIMPLE IRA plan?
What is a key difference between severance pay and supplemental unemployment benefits (SUB)?
What does the Mental Health Parity Act of 1996 (as amended) prohibit?
What is the primary reason given for why many firms have flextime programs?
In the case study about the UK's Driver and Vehicle Licensing Agency, what was the cost of its 14-days-out-per-employee absence rate in 2005?
Which of these is NOT listed as one of the four types of information provided by a filled-in job application form?
What is the most significant benefit of elder care referral services for employers?
What percentage of full-time workers get paid holidays, according to Chapter 13?
What is the primary risk for employers who use online video résumés for screening candidates?
Under graded vesting, what percentage of employer matching contributions must be nonforfeitable after an employee has completed 2 years of service?
What is the primary function of a flexible spending account (FSA) for medical expenses?