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AHIP AHM-250 Healthcare Management: An Introduction Exam Practice Test

Demo: 55 questions
Total 367 questions

Healthcare Management: An Introduction Questions and Answers

Question 1

The paragraph below contains two pairs of terms enclosed in parentheses. Determine which term in each pair correctly completes the paragraph. Then select the answer choice containing the two terms you have selected.

The Harbor Health Plan convened a litigation

Options:

A.

a standing / ongoing

B.

a standing / specific

C.

an ad hoc / ongoing

D.

an ad hoc / specific

Question 2

Which of the following features differentiates a 'Clinic without walls1 from a consolidated medical group?

Options:

A.

Unlike a consolidated medical group, physicians in a 'Clinic without walls' maintain their practices independently in multiple locations.

B.

Unlike a consolidated medical group, a 'Clinic without walls' performs or arranges for business operations for the member physicians.

C.

Both A & B

Question 3

The Hill Health Plan designed a set of benefits that it packaged in the form of a PPO product. Hill then established a pricing structure that allowed its product to compete in the small group market, and it developed advertising designed to inform potential

Options:

A.

An indemnity wraparound plan

B.

A self-funded plan

C.

An aggregate stop-loss plan

D.

A fully funded plan

Question 4

In order to be more effective, changes to structure and processes must be carefully

Options:

A.

Planned

B.

Implemented

C.

Documented

D.

Evaluated

E.

All the above

Question 5

The National Association of Insurance Commissioners (NAIC) developed the Small Group Model Act to enable small groups to obtain accessible, yet affordable, group health benefits. The model law limits the rate spread, which is the difference between the highest and lowest rates that a health plan charges small groups, to a particular ratio.

According to the Model Act, for example, if the lowest rate an HMO charges a small group for a given set of medical benefits is $40, then the maximum rate the HMO can charge for the same set of benefits is

Options:

A.

$60

B.

$80

C.

$120

D.

$160

Question 6

Which of the following is NOT a reason for conducting utilization reviews?

Options:

A.

Improve the quality and cost effectiveness of patient care

B.

Reduce unnecessary practice variations

C.

Make appropriate authorization decisions

D.

Accommodate special requirements of inpatient care

Question 7

What are the characteristics that the underwriter has to consider while determining the premium rate for health insurance coverage for a group?

Options:

A.

Level of benefits

B.

Geographic location

C.

Group size

D.

All the above

Question 8

The NAIC adopted the HMO Model Act in order to provide a system of ongoing regulatory monitoring of HMOs. All of the following statements are correct about the HMO Model Act EXCEPT that it:

Options:

A.

Regulates HMO operations in two critical areas: financial responsibility and healthcare delivery.

B.

Requires each HMO to send state regulators an annual report describing the HMO's finances and operations.

C.

Focuses on three key aspects of healthcare delivery: network adequacy, quality assurance, and grievance procedures.

D.

Requires state insurance departments to conduct annual examinations of an HMO's operations, quality assurance programs, and provider networks.

Question 9

Wellborne HMO provides health-related information to its plan members through an Internet Web site. Laura Knight, a Wellborne plan member, visited Wellborne's Web site to gather uptodate information about the risks and benefits of various treatment option

Options:

A.

shared decision making

B.

self-care

C.

preventive care

D.

triage

Question 10

The following types of CDHPs allow federal tax advantages including the ability to roll funds from one year to the next:

Options:

A.

MSAs, HRAs, HSAs

B.

FSAs, MRAs, HRAs

C.

FSAs, HRAs, HSAs

D.

FSAs, MRAs HSAs

Question 11

Exclusive provider organizations (EPO) is similar and operates like a PPO in administration, structure but however in an EPO an out-of-network care is

Options:

A.

Partially Covered

B.

Covered with more out of pocket

C.

Not covered

Question 12

To set up and contribute to an HSA, an individual must:

Options:

A.

Be covered by a high-deductible health plan that meets federal requirements.

B.

Not have other health insurance.

C.

Not be enrolled in Medicare.

D.

All of the above.

Question 13

The following statements apply to health reimbursement arrangements. Select the answer choice that contains the correct statement.

Options:

A.

Only employers are permitted to establish and fund HRAs.

B.

The popularity of HRAs waned following a 2002 ruling by U.S. Treasury Department regarding their treatment in the tax code.

C.

HRAs must be offered in conjunction with a high-deductible health plan.

D.

The guaranteed portability feature of HRAs has contributed to their popularity.

Question 14

Two MCOs in a single service area divided purchasers into two groups and agreed to each market their products to only one purchaser group. This information indicates that these two MCOs violated antitrust requirements because they engaged in an activity k

Options:

A.

horizontal group boycott

B.

horizontal division of markets

C.

a tying arrangement

D.

price fixing

Question 15

Keith Murray is a 45 year old chartered accountant & is employed in Livingstone consultancy firm. He has been paying payroll taxes for the past 15 years. Which of the following statements is true regarding Medicare Part A entitlement?

Options:

A.

Keith shall be entitled to Part A benefits when he attains 65 years of age

B.

Keith’s wife shall be entitled to Part A benefits when she attains 65 years of age

C.

Keith’s wife shall be required to pay a monthly premium in order to receive Medicare Part A benefits

D.

Both a & b

Question 16

The Oriole MCO uses a typical diagnosis-related groups (DRGs) payment method to reimburse the Isle Hospital for its treatment of Oriole members. Under the DRG payment method, whenever an Oriole member is hospitalized at Isle, Oriole pays Isle

Options:

A.

an amount based on the weighted value of each medical procedure or service that Isle provides, and the weighted value is determined by the appropriate current procedural terminology (CPT) code for the procedure or service

B.

a fixed rate based on average expected use of hospital resources in a given geographical area for that DRG

C.

a retrospective reimbursement based on the actual costs of the Oriole member's hospitalization

D.

a specific negotiated amount for each day the Oriole member is hospitalized

Question 17

Which of the following statements about the Title VII of the Civil Rights Act is WRONG?

Options:

A.

Employers with more than 15 employees engaged in interstate commerce need to comply

B.

Pregnancy Discrimination Act (an amendment to this act) requires health plans to provide coverage during childbirth and related medical conditions on the same basis as they provide coverage for other medical conditions

C.

Allows HMOs to set different policies for people from different races, religions, sex or national origin to safeguard their interests.

D.

Protects all employees

Question 18

The process that Mr. Sybex used to identify and classify the risk represented by the Koster Group so that Intuitive can charge premiums that are adequate to cover its expected costs is known as

Options:

A.

coinsurance

B.

plan funding

C.

underwriting

D.

pooling

Question 19

When determining the premium rates it will charge a particular group, the Blue Jay Health Plan used a rating method known as community rating by class (CRC). Under this rating method, Blue Jay

Options:

A.

was allowed to use no more than four rating classes when determining how much to charge the group for health coverage

B.

was required to make the average premium in each class no more than 105% of the average premium for any other class

C.

divided its members into rating classes based on demographic factors, experience, or industry characteristics, and then charged each member in a rating class the same premium

D.

charged all employers or other group sponsors the same dollar amount for a given level of medical benefits, without adjustments for age, gender, industry, or experience

Question 20

Managed behavioral health organizations (MBHOs) use several strategies to manage the delivery of behavioral healthcare services. The following statements are about these strategies.

Select the answer choice that contains the correct statement.

Options:

A.

MBHOs generally provide benefits for mental health services but not for chemical dependency services.

B.

The level of care needed to treat behavioral disorders is the same for all patients and all disorders.

C.

By using outpatient treatment more extensively, MBHOs have decreased the use of costly inpatient therapies.

D.

PCP gatekeeper systems for behavioral healthcare generally result in more accurate diagnoses, more effective treatment, and more efficient use of resources than do centralized referral systems.

Question 21

Several marketplace factors helped fuel the movement toward consumer choice. Which one of the following statements is NOT accurate with regard to these factors?

Options:

A.

After a period of relative stability, annual growth in private health spending per capita began to increase rapidly in 2002.

B.

During the height of the recent cost upswing, insurance premiums were increasing by more than 13% annually.

C.

Increased utilization was the largest factor contributing to the rise in premiums, accounting for 43% of the increase.

D.

Employer payers began seeking ways to control spiraling utilization rates and provide lower cost health coverage options.

Question 22

The following sentence contains an incomplete statement with two missing words. Select the answer choice that contains the words that correctly fill in the missing blanks.

At its core, consumer choice involves empowering healthcare consumers to play a __

Options:

A.

greater/lesser

B.

greater/greater

C.

lesser/greater

D.

lesser/lesser

Question 23

The following programs are part of the Alcove MCO's utilization management (UM) program:

  • A telephone triage program
  • Preventive care initiatives
  • A shared decision-making program
  • A self-care program

With regard to the UM programs, it is most likely cor

Options:

A.

self-care program is intended to complement physicians' services, rather than to supercede or eliminate these services

B.

telephone triage program is staffed by physicians only

C.

shared decision-making program is appropriate for virtually any medical condition

D.

preventive care initiatives include immunization programs but not health promotion programs

Question 24

The following programs are typically included in TRICARE medical management efforts:

Options:

A.

Utilization management

B.

Self-care

C.

Case management

D.

A and B only

E.

A and C only

F.

All of the listed options

G.

B and C only

Question 25

The following statement can be correctly made about Medicare Advantage eligibility:

Options:

A.

Individuals enrolled in a MA plan must enroll in a stand-alone Part D prescription drug plan.

B.

Individuals enrolled in a MA plan do not have to be eligible for Medicare Part A

C.

Individuals enrolled in an MSA plan or a PFFS plan without Medicare drug coverage can enroll in Medicare Part D.

D.

Individuals can enroll in MA plan in multiple regions.

Question 26

Many HMOs are compensated for the delivery of healthcare to members under a prepaid care arrangement. Under a prepaid care arrangement, a plan member typically pays a

Options:

A.

fixed amount in advance for each medical service the member receives

B.

a small fee such as $10 or $15 that a member pays at the time of an office visit to a network provider

C.

a fixed, monthly premium paid in advance of the delivery of medical care that covers most healthcare services that a member might need, no matter how often the member uses medical services

D.

specified amount of the member's medical expenses before any benefits are paid by the HMO

Question 27

The prudent layperson standard described in the Balanced Budget Act (BBA) of 1997 requires all hospitals that receive Medicare or Medicaid reimbursement to screen and, if necessary, stabilize all patients who come to their emergency departments.

Options:

A.

True

B.

False

Question 28

The Courtland PPO maintains computerized records that include clinical, demographic, and administrative data about individual plan members. The data in these records is available to plan providers, ancillary service departments, pharmacies, and others inv

Options:

A.

a data warehouse

B.

a decision support system

C.

an outsourcing system

D.

an electronic medical record (EMR) system

Question 29

The administrative simplification standards described under Title II of HIPAA include privacy standards to control the use and disclosure of health information. In general, these privacy standards prohibit

Options:

A.

all health plans, healthcare providers, and healthcare clearinghouses from using any protected health information for purposes of treatment, payment, or healthcare operations without an individual's written consent

B.

patients from requesting that restrictions be placed on the accessibility and use of protected health information

C.

transmission of individually identifiable health information for purposes other than treatment, payment, or healthcare operations without the individual's written authorization

D.

patients from accessing their medical records and requesting the amendment of incorrect or incomplete information

Question 30

One ethical principle in health plans is the principle of non-malfeasance, which holds that health plans and their providers:

Options:

A.

Should allocate resources in a way that fairly distributes benefits and burdens among the members.

B.

Have a duty to present information honestly and are obligated to honor commitments.

C.

Are obligated not to harm their members.

D.

Should treat each plan member in a manner that respects his or her goals and values.

Question 31

Specialty services that have certain characteristics generally are good candidates for managed care approaches. These characteristics generally include that the specialty service should have

Options:

A.

appropriate, rather than inappropriate, utilization

B.

a defined patient population

C.

low, stable costs

D.

a benefit that cannot be easily defined

Question 32

John Kerry's employer has contracted to receive healthcare for its employees from the Democratic Healthcare System. Mr. Kerry visits his PCP, who sends him to have some blood tests. The PCP then refers Mr. Kerry to a specialist who hospitalizes him for on

Options:

A.

a physician practice organization

B.

a physician-hospital organization

C.

a management services organization

D.

an integrated delivery system

Question 33

One true statement regarding ethics and laws is that the values of a community are reflected in

Options:

A.

both ethics and laws, and both ethics and laws are enforceable in the court system

B.

both ethics and laws, but only laws are enforceable in the court system

C.

ethics only, but only laws are enforceable in the court system

D.

laws only, but both ethics and laws are enforceable in the court system

Question 34

One way in which health plans differ from traditional indemnity plans is that health plans typically

Options:

A.

provide less extensive benefits than those provided under traditional indemnity plans

B.

place a greater emphasis on preventive care than do traditional indemnity plans

C.

require members to pay a percentage of the cost of medical services rendered after a claim is filed, rather than a fixed copayment at the time of service as required by indemnity plans

D.

contain cost-sharing requirements that result in more out-of-pocket spending by members than do the cost-sharing requirements in traditional indemnity plans

Question 35

The following paragraph contains an incomplete statement. Select the answer choice containing the term that correctly completes the statement. Advances in computer technology have revolutionized the processing of medical and drug claims. Claims processing i

Options:

A.

Lower

B.

Higher

C.

Same

D.

No change

Question 36

Some providers use electronic medical records (EMRs) to document their patients' care in an electronic form. The following statement(s) can correctly be made about EMRs:

Options:

A.

EMRs are computerized records of a patient's clinical, demographic, and administrator

B.

B only

C.

Both A and B

D.

Neither A nor B

E.

A only

Question 37

The application of health plan principles to workers' compensation insurance programs has presented some unique challenges because of the differences between health plan for traditional group healthcare and workers' compensation. One key difference is that

Options:

A.

limits coverage to eligible employees and excludes part-time employees

B.

specifies an annual lifetime benefit maximum on dollar coverage for medical costs

C.

provides benefits regardless of the cause of an injury or illness

D.

provides benefits for both healthcare costs and lost wages

Question 38

PBM plans operate under several types of contractual arrangements. Under one contractual arrangement, the PBM plan and the employer agree on a target cost per employee per month. If the actual cost per employee per month is greater than the target cost, t

Options:

A.

fee-for-service arrangement

B.

risk sharing contract

C.

capitation contract

D.

rebate contract

Question 39

Bart Vereen is insured by both a traditional indemnity health insurance plan, which is his primary plan, and a managed care plan. Both plans have a typical coordination of benefits (COB) provision, but neither plan has a nonduplication of benefits provision

Options:

A.

380

B.

130

C.

0

D.

550

Question 40

By definition, a health plan's network refers to the

Options:

A.

organizations and individuals involved in the consumption of healthcare provided by the plan

B.

relative accessibility of the plan's providers to the plan's participants

C.

group of physicians, hospitals, and other medical care providers with whom the plan has contracted to deliver medical services to its members

D.

integration of the plan's participants with the plan's providers

Question 41

Al Marak, a member of the Frazier Health Plan, has asked for a typical Level One appeal of a decision that Frazier made regarding Mr. Marak's coverage. One true statement about this Level One appeal is that

Options:

A.

Mr. Marak has the right to appeal to the next level if the Level One appeal upholds the original decision

B.

It requires Frazier and Mr. Marak to submit to arbitration in order to resolve the dispute

C.

It is considered to be an informal appeal

D.

It will be handled by an independent review organization (IRO)

Question 42

Identify the CORRECT statement(s):

(A) Smaller the group, the more likely it is that the group will experience losses similar to the average rate of loss that was predicted.

(B) Gender of the group's participants has no effect on the likelihood of loss.

Options:

A.

All of the listed options

B.

B & C

C.

None of the listed options

D.

A & C

Question 43

In health plan terminology, demand management, as used by health plans, can best be described as

Options:

A.

an evaluation of the medical necessity, efficiency, and/or appropriateness of healthcare services and treatment plans for a given patient

B.

a series of strategies designed to reduce plan members' needs to utilize healthcare services by encouraging preventive care, wellness, member self-care, and appropriate use of healthcare services

C.

a technique that prevents a provider who is being reimbursed under a fee schedule arrangement from billing a plan member for any fees that exceed the maximum fee reimbursed by the plan

D.

a system of identifying plan members with special healthcare needs, developing a healthcare strategy to meet those needs, and coordinating and monitoring the care

Question 44

Brokers are one type of distribution channel that health plans use to market their health plans. One true statement about brokers for health plan products is that, typically, brokers

Options:

A.

Are not required to be licensed by the states in which they market health plans

B.

Are compensated on a salary basis

C.

Represent only one health plan or insurer

D.

Are considered to be an agent of the buyer rather than an agent of the health plan or Insurer

Question 45

A public employer, such as a municipality or county government would be considered which of the following?

Options:

A.

Employer-employee group

B.

Multiple-employer group

C.

Affinity group

D.

Debtor-creditor group

Question 46

Health plans can organize under a not-for-profit form or a for-profit form. One true statement regarding not-for-profit health plans is that these organizations typically

Options:

A.

are exempt from review by the Internal Revenue Service (IRS)

B.

are organized as stock companies for greater flexibility in raising capital

C.

rely on income from operations for the large cash outlays needed to fund long-term projects and expansion

D.

engage in lobbying or political activities in order to maintain their tax-exempt status

Question 47

In response to the demand for a method of assessing outcomes, accrediting organizations and other government and commercial groups have developed quantitative measures of quality that consumers, purchasers, regulators, and others can use to compare health

Options:

A.

quality standards

B.

accreditation decisions

C.

standards of care

D.

performance measures

Question 48

During the risk assessment process for a traditional indemnity group insurance health plan, group underwriters consider such characteristics as a group’s geographic location, the size and gender mix of the group, and the level of participation in the grou

Options:

A.

Healthcare costs are typically higher in rural areas than in large urban areas.

B.

The morbidity rate for males is higher than the morbidity rate for females.

C.

The larger the group, the more likely it is that the group will experience losses similar to the average rate of loss that was predicted.

D.

All of the above

Question 49

In the paragraph below, a sentence contains two pairs of words enclosed in parentheses. Determine which word in each pair correctly completes the sentence. Then select the answer choice containing the two words that you have chosen. Many pharmacy benefit

Options:

A.

Therapeutic / always

B.

Generic / always

C.

Generic / never

D.

Therapeutic / never

Question 50

In certain situations, a health plan can use the results of utilization review to intervene, if necessary, to alter the course of a plan member's medical care. Such intervention can be based on the results of

Options:

A.

Prospective review

B.

Concurrent review

C.

D.

A, B, and C

E.

A and B only

F.

A and C only

G.

B only

Question 51

From the following choices, choose the definition that best matches the term Screening

Options:

A.

A technique used to educate plan members on how to distinguish between minor problems and serious conditions and effectively treat minor problems themselves

B.

A technique used to determine if a health condition is present even if a member has not experienced symptoms of the problem

C.

A technique in which information about a plan member's health status, personal and family health history, and health-related behaviors is used to predict the member's likelihood of experiencing specific illnesses or injuries

D.

A technique used to evaluate the medical necessity, appropriateness, and cost-effectiveness of healthcare services for a given patient

Question 52

In certain situations, a health plan can use the results of utilization review to intervene, if necessary, to alter the course of a plan member's medical care. Such intervention can be based on the results of

Options:

A.

Prospective review

B.

Concurrent review

C.

D.

A, B, and C

E.

A and B only

F.

A and C only

G.

B only

Question 53

In large health plans, management functions such as provider recruiting, credentialing, contracting, provider service, and performance management for providers are typically the responsibility of the

Options:

A.

chief executive officer (CEO)

B.

network management director

C.

board of directors

D.

director of operations

Question 54

For providers, integration occurs when two or more previously separate providers combine under common ownership or control, or when two or more providers combine business operations that they previously carried out separately and independently. Such provi

Options:

A.

higher costs for health plans, healthcare purchasers, and healthcare consumers

B.

improved provider contracting position with health plans

C.

an increase in providers' autonomy and control over their own work environment

D.

all of the above

Question 55

Health plans require utilization review for all services administered by its participating physicians.

Options:

A.

True

B.

False

Demo: 55 questions
Total 367 questions