Multiple Choice
You can help prevent fraud, waste, and abuse (FWA) by doing all of the following EXCEPT:
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
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Group dental plans will frequently place a limit on annual benefits in order to minimize which of the following?
A
The number of employees eligible for coverage
B
The administrative costs of the plan
C
The risk of fraudulent claims
D
The employer's tax liability
Verified step by step guidance1
Understand the purpose of group dental plans: These plans are designed to provide dental coverage to employees, often as part of their benefits package.
Identify the concept of annual benefit limits: Annual benefit limits are caps on the amount of coverage provided within a year. This is a common feature in insurance plans.
Analyze the reason for placing limits: The primary goal of annual benefit limits is to control costs and reduce risks associated with the plan.
Evaluate the options provided: Consider each option and determine which aligns with the purpose of minimizing risks or costs. For example, minimizing fraudulent claims is a key concern for insurers.
Conclude the reasoning: The correct answer is 'The risk of fraudulent claims,' as annual limits help prevent excessive or fraudulent use of the plan's benefits.
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