An HR director decided not to interview a qualified applicant because of personal knowledge that the applicant's family has a history of cancer. The director most likely intended to reduce which of…

The correct answer is A. Health insurance experience rating. The intent here was to avoid increased health insurance costs, which would fall under experience rating -- a method insurers use to set premiums based on historical claims. However, making hiring decisions based on family medical history violates the Genetic Information…

Risk Management

Question

An HR director decided not to interview a qualified applicant because of personal knowledge that the applicant's family has a history of cancer. The director most likely intended to reduce which of the following risks?

Options

AHealth insurance experience rating
BWorkers' compensation claims
CNegative wellness outcomes
DSick leave policy abuse

How the community answered

(22 responses)

A
77% (17)
B
5% (1)
C
14% (3)
D
5% (1)

Explanation

The intent here was to avoid increased health insurance costs, which would fall under experience rating -- a method insurers use to set premiums based on historical claims. However, making hiring decisions based on family medical history violates the Genetic Information Nondiscrimination Act (GINA). Extract from HRCI-aligned HR knowledge: In the Employee Relations and Engagement domain, understanding "employment law compliance" and risk mitigation strategies is essential. While the director may have been trying to manage insurance costs, this rationale violates federal employment law, demonstrating poor risk management.

Topics

#genetic information#health insurance risk#employment screening#GINA

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