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AHM-250 Healthcare Management: An Introduction Questions and Answers

Questions 4

The Titanium Health Plan and a third-party administrator (TPA) have entered into a TPA agreement with regard to the administration of a particular health plan. This agreement complies with all of the provisions of the NAIC TPA Model Law. One of the TPA's

Options:

A.

Hold all funds it receives on behalf of Titanium in trust.

B.

Assume full responsibility for ensuring that the health plan is administered properly

C.

Obtain from the federal government a certificate of authority designating the organization as a TPA.

D.

Assume full responsibility for determining the claim payment procedures for the plan

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Questions 5

The following statements apply to flexible spending arrangements. Select the answer choice that contains the correct statement.

Options:

A.

FSAs were designed to help increase health insurance coverage among self-employed individuals.

B.

Only employers may contribute funds to FSAs.

C.

The popularity of FSAs has been limited because funds may not be rolled over from year to year.

D.

A popular feature of FSAs is their portability, which allows employees to take the funds with them when they change jobs.

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Questions 6

The health plan determines what it considers to be the acceptable fee for a service or procedure and the physician agrees to accept that amount as payment in full for the procedure

Options:

A.

Usual, Customary, and Reasonable fee

B.

Discounted FFS

C.

Fee Maximum

D.

Relative Value Scale

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Questions 7

Which of the following statements is FALSE?

Options:

A.

The license that HMOs get in each state is called ‘Certificate of Authority’

B.

The HMO contracts directly with the individual physicians who provide the medical services to the HMO members in a variation of the IPA model called direct contract model HMO.

C.

All medicare/mediclaim beneficiaries should comply with utilization management requirements set forth by HCFA

D.

HMO’s usually impose high coinsurance or deductible requirements

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Questions 8

An HMO’s quality assurance program must include

Options:

A.

A statement of the HMO’s goals and objectives for evaluating and improving enrollees’ health status

B.

Documentation of all quality assurance activities

C.

System for periodically reporting program results to the HMO’s board of directors, its providers, and regulators

D.

All the above

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Questions 9

Using a code for a procedure or diagnosis that is more complex than the actual procedure or diagnosis and that results in higher reimbursement to the provider is called ______________.

Options:

A.

Coding error

B.

Overcharging

C.

Upcoming

D.

Unbundling

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Questions 10

The following statements describe individuals who are applying for individual health insurance coverage:

Six months ago, Wilbur Lee lost his health insurance coverage due to a reduction in work hours and has exhausted his coverage under COBRA. Mr. Lee has

Options:

A.

both Mr. Lee and Mr. Beeker

B.

Mr. Lee only

C.

Mr. Beeker only

D.

neither Mr. Lee nor Mr. Beeker

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Questions 11

From the following answer choices, choose the description of the ethical principle that best corresponds to the term Autonomy

Options:

A.

Health plans and their providers are obligated not to harm their members

B.

Health plans and their providers should treat each member in a manner that respects the member's goals and values, and they also have a duty to promote the good of the members as a group

C.

Health plans and their providers should allocate resources in a way that fairly distributes benefits and burdens among the members

D.

Health plans and their providers have a duty to respect the right of their members to make decisions about the course of their lives

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Questions 12

A medical foundation is a not-for-profit entity that purchases and manages physician practices. In order to retain its not-for-profit status, a medical foundation must

Options:

A.

Provide significant benefit to the community

B.

Employ, rather than contract with, participating physicians

C.

Achieve economies of scale through facility consolidation and practice management

D.

Refrain from the corporate practice of medicine

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Questions 13

Beginning in the early 1980s, several factors contributed to increased demand for behavioral healthcare services. These factors included

Options:

A.

increased stress on individuals and families

B.

increased availability of behavioral healthcare services

C.

greater awareness and acceptance of behavioral healthcare issues

D.

all of the above

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Questions 14

An HMO that combines characteristics of two or more HMO models is sometimes referred to as a

Options:

A.

Network model HMO

B.

Group model HMO

C.

Staff model HMO

D.

Mixed model HMO

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Questions 15

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

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Questions 16

Bill Clinton is a member of Lewinsky's PBM plan which has a three-tier copayment structure. Bill fell ill and his doctor prescribed him AAA, a brand-name drug which was included in the Lewinsky's formulary; BBB, a non-formulary drug; and CCC, a generic dr

Options:

A.

CCC, AAA, BBB

B.

BBB, CCC, AAA

C.

BBB, AAA, CCC

D.

CCC, BBB, AAA

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Questions 17

If most of the physicians, or many of the physicians in a particular specialty, are affiliated with a single entity, then a health plan building a network in the service area _____________.

Options:

A.

Has many contracting options available.

B.

Should not contract with that entity

C.

Most likely needs to contract with that entity

D.

Should attempt to disband the existing affiliations

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Questions 18

HMOs typically employ several techniques to manage provider utilization and member utilization of medical services. One technique that an HMO uses to manage member utilization is

Options:

A.

the use of physician practice guidelines

B.

the requirement of copayments for office visits

C.

capitation

D.

risk pools

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Questions 19

All CDHP products provide federal tax advantages while allowing consumers to save money for their healthcare.

Options:

A.

True

B.

False

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Questions 20

Ian Vladmir wants to have a routine physical examination to ascertain that he is in good health. Mr. Vladmir is a member of a health plan that will allow him to select the physician of his choice, either from within his plan's network or from outside of h

Options:

A.

a traditional HMO plan

B.

a managed indemnity plan

C.

a point of service (POS) option

D.

an exclusive provider organization (EPO)

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Questions 21

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

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Questions 22

From the answer choices below, select the response that correctly identifies the rating method that Mr. Sybex used and the premium rate PMPM that Mr. Sybex calculated for the Koster group.

Options:

A.

Rating Method book rating Premium Rate PMPM $132

B.

Rating Method book rating Premium Rate PMPM $138

C.

Rating Method blended rating Premium Rate PMPM $132

D.

Rating Method blended rating Premium Rate PMPM $138

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Questions 23

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

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Questions 24

In order to compensate for lost revenue resulting from services provided free or at a significantly reduced cost to other patients, many healthcare providers spread these unreimbursed costs to paying patients or third-party payors. This practice is known

Options:

A.

dual choice

B.

cost shifting

C.

accreditation

D.

defensive medicine

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Questions 25

Utilization data can be transmitted to the health plan manually, by telephone, or electronically. Compared to other methods of data transmittal, manual transmittal is generally

Options:

A.

less cumbersome and labor intensive

B.

faster and more accurate

C.

more acceptable to physicians

D.

subject to greater scrutiny by regulatory bodies

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Questions 26

Combined system of preventive, diagnostic and therapeutic measures that focuses on management of specific chronic illness or medical conditions are:

Options:

A.

Utilization Review

B.

Case Management

C.

Demand Management

D.

Disease management

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Questions 27

The Madison Health Plan, a national MCO, and a local hospital system that operates its own managed healthcare network recently created a new and separate managed healthcare organization, the Pineapple Health Plan. Madison and the hospital system share own

Options:

A.

a consolidation

B.

a joint venture

C.

a merger

D.

an acquisition

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Questions 28

Individuals can use HSAs to pay for the following types of health coverage:.

Options:

A.

Qualified disability insurance

B.

COBRA continuation coverage.

C.

Medigap coverage (for those over 65).

D.

All of the above.

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Questions 29

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

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Questions 30

The data evaluation stage of utilization review (UR) includes both administrative reviews and medical reviews. One true statement about these types of reviews is that:

Options:

A.

An administrative review must be conducted by a health plan staff member who is a medical professional.

B.

The primary purpose of an administrative review is to evaluate the appropriateness of a proposed medical service.

C.

UR staff members typically conduct a medical review of a proposed medical service before they conduct an administrative review for that same service.

D.

One purpose of a medical review is to evaluate the medical necessity of a proposed medical service.

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Questions 31

One characteristic of the accreditation process for MCOs is that

Options:

A.

an accrediting agency typically conducts an on-site review of an MCO's operations, but it does not review an MCO's medical records or assess its member service systems

B.

each accrediting organization has its own standards of accreditation

C.

the accrediting process is mandatory for all MCOs

D.

government agencies conduct all accreditation activities for MCOs

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Questions 32

Janet Riva is covered by a indemnity health insurance plan that specifies a $250 deductible and includes a 20% coinsurance provision. When Ms. Riva was hospitalized, she incurred $2,500 in medical expenses that were covered by her health plan. She incurred

Options:

A.

$1,750

B.

$1,800

C.

$2,000

D.

$2,250

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Questions 33

One type of physician-only integration model is a consolidated medical group. Typical characteristics of a consolidated medical group include

Options:

A.

that it may be a single-specialty or multi-specialty practice

B.

operates in one or a few facilities rather than in many independent offices

C.

achieves economies of scale in the group's integrated operations

D.

all of the above

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Questions 34

Specialty services with certain characteristics tend to make good candidates for health plan approaches. One characteristic used to identify a specialty service that may be a good candidate for a health plan approach is that the service should have

Options:

A.

a defined patient population

B.

a complex benefit structure

C.

low, stable costs

D.

appropriate utilization rates

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Questions 35

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

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Questions 36

Lansdale Healthcare, a health plan, offers comprehensive healthcare coverage to its members through a network of physicians, hospitals, and other service providers. Plan members who use in-network services pay a copayment for these services. The copayment

Options:

A.

specified dollar amount charge that a plan member must pay out-of-pocket for a specified medical service at the time the service is rendered

B.

percentage of the fees for medical services that a plan member must pay after Magellan has paid its share of the costs of those services

C.

flat amount that a plan member must pay each year before Magellan will make any benefit payments on behalf of the plan member

D.

specified payment for services that was negotiated between the provider and Magellan

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Questions 37

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

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Questions 38

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

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Questions 39

Primary care case managers (PCCMs) provide managed healthcare services to eligible Medicaid recipients. With regard to PCCMs, it is correct to say that

Options:

A.

PCCMs contract directly with the federal government to provide case management services to Medicaid recipients

B.

all Medicaid recipients who live in rural areas must be given a choice of at least four PCCMs

C.

Medicaid PCCM programs are exempt from the Health Care Financing Administration's (HCFA's) Quality Improvement System for Managed Care (QISMC) standards

D.

PCCMs typically receive a case management fee, rather than reimbursement for medical services on a FFS basis, for the services they provide to Medicaid recipients

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Questions 40

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

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Questions 41

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

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Questions 42

One distinguishing characteristic of a health maintenance organization (HMO) is that, typically, an HMO

Options:

A.

arranges for the delivery of medical care and provides, or shares in providing, the financing of that care

B.

must be organized on a not-for-profit basis

C.

may be organized as a corporation, a partnership, or any other legal entity

D.

must be federally qualified in order to conduct business in any state

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Questions 43

The Clover Group is a for-profit MCO that operates in the United States. The Valentine Group owns all of Clover's stock. The Valentine Group's sole business is the ownership of controlling interests in the shares of other companies. This information indic

Options:

A.

holding company of the Valentine Group

B.

sister corporation of the Valentine Group

C.

parent company of the Valentine Group

D.

subsidiary of the Valentine Group

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Questions 44

One of the most influential pieces of legislation in the advancement of managed care within the United States was the HMO Act of 1973. One provision of the HMO Act of 1973 was that it

Options:

A.

emphasized compensating physicians based solely on the volume of medical services they provide

B.

exempted HMOs from all state licensure requirements

C.

established a process under which HMOs could elect to be federally qualified

D.

required federally qualified HMOs to relate premium levels to the health status of the individual enrollee or employer group

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Questions 45

Medicare Part C can be delivered by the following Medicare Advantage plans:

Options:

A.

HCCP, HMO, PPO (local or regional), PFFS or MSA.

B.

CCPs, PFFS or MSA.

C.

HMO, HSA, PPO (local or regional), PFFS or MSA.

D.

HMO, PPO (local or regional), POS, or MSA.

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Questions 46

Katrina Lopez is a claims analyst for a health plan that provides a higher level of benefits for services received in-network than for services received out-of-network. Ms. Lopez reviewed a health claim for answers to the following questions:

Question A -

Options:

A.

A, B, C, and D

B.

A, B, and D only

C.

B, C, and D only

D.

A and C only

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Questions 47

The Venus Hospital provides medical care to paying patients, as well as to people who either have no healthcare coverage and cannot pay for the care by themselves or who receive services at reduced rates because they are covered under government sponsored

Options:

A.

anti selection

B.

cost shifting

C.

receivership

D.

underwriting

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Questions 48

To address the problems associated with multiple data management systems, the Kayak Health Plan has begun to use a data warehouse. One likely characteristic of Kayak's data warehouse is that:

Options:

A.

It requires Kayak's individual databases to store large amounts of data that are not needed for daily operations.

B.

It contains data from internal sources only.

C.

It stores historical data rather than current data.

D.

The data in the warehouse are linked by a common subject.

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Questions 49

After a somewhat modest start in 2004, enrollment in HSA-related health plans more than tripled in 2005, making them today’s fastest growing type of CDHP. As of January 2006, enrollment in HSAs had reached nearly:

Options:

A.

1.2 million

B.

2.2 million

C.

3.2 million

D.

4.2 million

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Questions 50

Certificate of Authority (COA) is subject to:

Options:

A.

Contract between health plan and employer

B.

State laws require an HMO not to be organized as a corporation

C.

Compliance with CMS

D.

an HMO may have to be licensed as an HMO or insurance company in each state in which it conducts business

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Questions 51

Which of the following statements about EPO & HMO models is FALSE?

Options:

A.

In-network visit is allowed only on PCP's referral in HMO model.

B.

Out-of-network visit is not allowed in HMO model.

C.

Out-of-network visit is not allowed in EPO model.

D.

In-network visit is allowed only on PCP's referral in EPO model.

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Questions 52

The main purpose of the Health Plan Employer Data and Information Set (HEDIS) is to provide

Options:

A.

expert consultation to end-users for solving specialized and complex healthcare problems through the use of a knowledge-based computer system

B.

a comprehensive accreditation for PPOs

C.

measurements of plan performance and effectiveness that potential healthcare purchasers can use to compare quality offered by different healthcare plans

D.

a mathematical model that can predict future claim payments and premiums

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Questions 53

The Helm MCO segmented the non-group market for its new healthcare product by using factors such as education level, gender, and household composition. The Amberly MCO segmented the non-group market for its products based on the approaches by which it sol

Options:

A.

demographic product or benefit

B.

geographic distribution channel

C.

demographic distribution channel

D.

geographic product or benefit

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Questions 54

The situation wherein two hospitals agree to each refuse to contract with a health plan until the health plan cease contract negotiations with a competing hospital is known as

Options:

A.

Horizontal division of markets

B.

Tying arrangements

C.

Horizontal group boycott

D.

Price fixing

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Questions 55

The Mosaic health plan uses a typical electronic medical record (EMR) to document the medical care its members receive. One characteristic of Mosaic's EMR is that it:

Options:

A.

Does not provide any clinical decision support for Mosaic's providers.

B.

Is designed to supply information at the site of care.

C.

Contains a Mosaic member's clinical data only.

D.

Is organized by the type of treatment or by provider.

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Exam Code: AHM-250
Exam Name: Healthcare Management: An Introduction
Last Update: Dec 27, 2024
Questions: 367
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