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AHM-250 Healthcare Management: An Introduction Questions and Answers

Questions 4

The Polestar Company's sole business is the ownership of Polaris Medical Group, a health plan and subsidiary of Polestar. Some members of Polestar's board of directors hold positions with Polestar in addition to their positions on the board; the rest are

Options:

A.

Polestar's relationship to Polaris: partnership

Type of board member: operations director

B.

Polestar's relationship to Polaris: partnership

Type of board member: outside director

C.

Polestar's relationship to Polaris: holding company

Type of board member: operations director

D.

Polestar's relationship to Polaris: holding company

Type of board member: outside director

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Questions 5

The Panacea Healthcare System is a single large medical practice based in Oakland, California. The physicians of Panacea operate through a single office located in the Beverly Hills region of Oakland & do have access to the same medical records. Panacea is owned by Queen's hospital & before Panacea acquired the practices of its participating physicians, these physicians were independent practitioners. Which of the following terms best describes Panacea?

Options:

A.

Physician Practice Management Compare

B.

Physician Hospital Organization

C.

Consolidated Medical Group

D.

None of the above

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Questions 6

Common characteristics of POS products are

Options:

A.

Lack of Freedom of choice

B.

Absence of Primary care physician

C.

Cost-cutting efforts and the structure of coverage

D.

All of the above

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Questions 7

The following statements are about issues associated with marketing healthcare plans to small groups and large groups. Select the answer choice that contains the correct statement.

Options:

A.

In the large group market, large group accounts that have employees in more than one geographic area who are covered through a single national contract for healthcare coverage are known as large local groups.

B.

Because providing healthcare coverage for employees is often a burden for small businesses, price is typically the most critical consideration for small businesses in selecting a healthcare plan.

C.

health plans typically treat an employer purchasing coalition as a small group for marketing purposes.

D.

Large groups rarely use self-funding to finance their healthcare plans.

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Questions 8

Which of the following statements about Family and Medical Leave Act (FMLA) is WRONG?

Options:

A.

Employers need to maintain the coverage of group health insurance during this period

B.

Employees can take upto 12 weeks of unpaid leave in a 36 month period

C.

Protects people faced with birth/adoption or seriously ill family members

D.

Employers that have > 50 employees need to comply

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Questions 9

System classifies hundreds of hospital services based on a number of criteria, such as primary and secondary diagnosis, surgical procedures, age, gender, and the presence of complications.

Options:

A.

Carve-out

B.

DRG

C.

Global capitation

D.

Partial capitation

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Questions 10

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

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Questions 11

FSA is funded by

Options:

A.

Employers

B.

Employee

C.

A & B

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Questions 12

Ashley Martin is covered by a managed healthcare plan that specifies a $300 deductible and includes a 30% coinsurance provision for all healthcare obtained outside the plan’s network of providers. In 1998, Ms. Martin became ill while she was on vacation,

Options:

A.

$300

B.

$510

C.

$600

D.

$810

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Questions 13

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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Questions 14

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

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 15

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

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Questions 16

A common physician-only integrated model is a group practice without walls (GPWW). One characteristic of a typical GPWW is that the

Options:

A.

GPWW combines multiple independent physician practices under one umbrella organization

B.

GPWW generally has a lesser degree of integration than does an IPA

C.

member physicians cannot own the GPWW

D.

GPWW's member physicians must perform their own business operations

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Questions 17

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 18

Col. Martin Avery, on active duty in the U.S. Army, is eligible to receive healthcare benefits under one of the three TRICARE health plan options. If Col Avery elects to participate in TRICARE Prime, he will be

Options:

A.

able to obtain full benefits for services obtained from network and non-network providers

B.

subject to copayment, deductible, and coinsurance requirements for any medical care he receives

C.

required to formally enroll for coverage and pay an enrollment fee

D.

assigned to a primary care manager who is responsible for coordinating all his care

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Questions 19

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.

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Questions 20

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

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Questions 21

Many of the credentialing standards and criteria used by health plans are often taken from already existing standards established by

Options:

A.

the National Practitioner Data Bank (NPDB)

B.

the National Association of Insurance Commissioners (NAIC)

C.

the Centers for Medicare and Medicaid Services (CMS)

D.

independent accrediting organizations

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Questions 22

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 23

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

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Questions 24

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 25

Ed O'Brien has both Medicare Part A and Part B coverage. He also has coverage under a PBM plan that uses a closed formulary to manage the cost and use of pharmaceuticals. Recently, Mr. O'Brien was hospitalized for an aneurysm. Later, he was transferred by

Options:

A.

Confinement in the extended-care facility after his hospitalization.

B.

Transportation by ambulance from the hospital to the extended-care facility.

C.

Physicians' professional services while he was hospitalized.

D.

physicians' professional services while he was at the extended-care facility.

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Questions 26

In order to measure the expenses of institutional utilization, Holt Healthcare Group uses the standard formula to calculate hospital bed days per 1,000 plan members per year. On October 23, Holt used the following information to calculate the bed days per

Options:

A.

278

B.

397

C.

403

D.

920

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Questions 27

Health plans' use of the Internet to provide plan members with health-related information has grown rapidly in recent years. One advantage the Internet has over other forms of communication is that

Options:

A.

users can access the Internet using a number of different types of computer systems

B.

access to the Internet is available only to members of the health plan's network

C.

the Internet is immune to internal security breaches by employees or trading partners within the network

D.

users can contact a single controlling organization to rectify disruptions in Internet service

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Questions 28

An exclusive provider organization (EPO) operates much like a PPO. However, one difference between an EPO and a PPO is that an EPO

Options:

A.

Is regulated under federal HMO legislation

B.

Generally provides no benefits for out-of-network care

C.

Has no provider network of physicians

D.

Is not subject to state insurance laws

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Questions 29

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

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Questions 30

As part of its utilization management (UM) system, the Poplar MCO uses a process known as case management. The following statements describe individuals who are Poplar plan members:

  • Brad Van Note, age 28, is taking many different, costly medications for

Options:

A.

Mr. Van Note, Mr. Albrecht, and Ms. Cromartie

B.

Mr. Van Note and Ms. Cromartie only

C.

Mr. Van Note and Mr. Albrecht only

D.

Mr. Albrecht and Ms. Cromartie only

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Questions 31

During an open enrollment period in 1997, Amy Hadek enrolled through her employer for group health coverage with the Owl Health Plan, a federally qualified HMO. At the time of her enrollment, Ms. Hadek had three pre-existing medical conditions: angina, fo

Options:

A.

the angina, the high blood pressure, and the broken ankle

B.

the angina and the high blood pressure only

C.

none of these conditions

D.

the broken ankle only

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Questions 32

Health plans sometimes contract with independent organizations to provide specialty services, such as vision care or rehabilitation services, to plan members. Specialty services that have certain characteristics are generally good candidates for health pl

Options:

A.

Low or stable costs.

B.

Appropriate, rather than inappropriate, utilization rates.

C.

A benefit that cannot be easily defined.

D.

Defined patient population.

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Questions 33

Consumer-directed health plans are not a new concept. They actually got their start in the late 1970s with the advent of:

Options:

A.

Health savings accounts (HSAs)

B.

Health reimbursement arrangements (HRAs)

C.

Medical savings accounts (MSAs)

D.

Flexible spending arrangements (FSAs)

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Questions 34

Greentree Medical, a health plan, is currently recruiting PCPs in preparation for its expansion into a new service area. Abigail Davis, a recruiter for Greentree, has been meeting with Melissa Cortelyou, M.D., in an effort to recruit her as a PCP in Green

Options:

A.

Greentree is prevented by law from offering a contract to Dr. Cortelyou until the credentialing process is complete

B.

any contract signed by Dr. Cortelyou should include a clause requiring the successful completion of the credentialing process within a defined time frame in order for the contract to be effective

C.

Greentree must offer a standard contract to Dr. Cortelyou, without regard to the outcome of the credentialing process

D.

Greentree will abandon the credentialing process now that Dr. Cortelyou has agreed to participate in Greentree's network

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Questions 35

Historically most HMOs have been

Options:

A.

Closed-access HMO

B.

Closed-panel HMO

C.

Open-access HMO

D.

Open-panel HMO

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Questions 36

In preparation for its expansion into a new service area, the Regal MCO is meeting with Dr. Nancy Buhner, a cardiologist who practices in Regal's new service area, in order to convince her to become one of the plan's participating providers. As part of the

Options:

A.

ensure that Dr. Buhner complies with all of the provisions of the Ethics in Patient Referrals Act

B.

learn whether Dr. Buhner is a licensed medical practitioner

C.

confirm Dr. Buhner's membership in the National Committee for Quality Assurance (NCQA)

D.

learn whether Dr. Buhner has had a medical malpractice claim filed or other disciplinary actions taken against her

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Questions 37

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 38

The following statements describe common types of physician/hospital integrated models:

The Iota Company, which is owned by a group of investors, is a for-profit legal entity that buys entire physician practices, not just the tangible assets of the practice

Options:

A.

Iota- physician hospital organization (PHO)Casa- physician practice management (PPM) company.

B.

Iota- physician hospital organization (PHO)Casa- medical foundation.

C.

Iota- physician practice management (PPM) Casa- physician hospital organization (PHO) company.

D.

Iota- medical foundation Casa- management services organization (MSO).

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Questions 39

The following statements are about the accessibility of healthcare coverage and medical care in the United States. Select the answer choice that contains the correct statement.

Options:

A.

A person’s employment status as a full-time employee guarantees that person access to healthcare coverage.

B.

Most people who have healthcare coverage are covered under an individual insurance policy rather than a group insurance plan.

C.

The percentage of the population without healthcare coverage is evenly distributed throughout the United States.

D.

Hospital closings have occurred disproportionately in rural areas and inner cities and have reduced access to healthcare in these areas.

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Questions 40

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.

$140

B.

$170

C.

$180

D.

$210

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Questions 41

Which of the following is(are) CORRECT?

(A) Staff model HMOs can achieve maximum economies of scale but are heavily capital intensive.

(B) Staff model HMOs are closed panel.

(C) Staff model HMOs operate out of ambulatory care facilities.

Options:

A.

A & B

B.

None of the listed options

C.

B & C

D.

All of the listed options

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Questions 42

The following statements are about federal laws that affect healthcare organizations. Select the answer choice containing the correct response.

Options:

A.

The Women's Health and Cancer Rights Act (WHCRA) of 1998 requires health plans to offer mastectomy benefits.

B.

The Health Care Quality Improvement Act (HCQIA) requires hospitals, group practices, and HMOs to comply with all standard antitrust legislation, even if these entities adhere to due process standards that are outlined in HCQIA.

C.

The Newborns' and Mothers' Health Protection Act (NMHPA) of 1996 mandates that coverage for hospital stays for childbirth must generally be a minimum of 24 hours for normal deliveries and 48 hours for cesarean births.

D.

Although the Mental Health Parity Act (MHPA) does not require health plans to offer mental health coverage, it imposes requirements on those plans that do offer mental health benefits.

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Questions 43

When determining the rates it will charge a small group, the Eagle HMO, a federally qualified HMO, divides its members into classes or groups based on demographic factors such as geography, family composition, and age. Eagle then charges all members of a

Options:

A.

Retrospective experienced rating.

B.

Adjusted community rating (ACR).

C.

Pure community rating.

D.

Standard community rating.

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Questions 44

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.

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Questions 45

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 46

Paul Gilbert has been covered by a group health plan for two years. He has been undergoing treatment for angina for the past three months. Last week, Mr. Gilbert began a new job and immediately enrolled in his new company's group health plan, which has a

Options:

A.

Can exclude coverage for treatment of Mr. Gilbert's angina for one year, because HIPAA does not impact a group health plan's pre-existing condition provision.

B.

Can exclude coverage for treatment of Mr. Gilbert's angina for one year, because Mr. Gilbert did not have at least 36 months of creditable coverage under his previous health plan.

C.

Can exclude coverage for treatment of Mr. Gilbert's angina for three months, because that is the length of time he received treatment for this medical condition prior to his enrollment in the new health plan.

D.

Cannot exclude his angina as a pre-existing condition, because the one-year pre-existing condition provision is offset by at least one year of continuous coverage under his previous health plan.

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Questions 47

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

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Questions 48

Natalie Chan is a member of the Ultra Health Plan. Whenever she needs non-emergency medical care, she sees Dr. David Craig, an internist. Ms. Chan cannot self-refer to a specialist, so she saw Dr. Craig when she experienced headaches. Dr. Craig referred h

Options:

A.

Within Ultra's system, Ms. Chan received primary care from both Dr. Craig and Dr. Lee.

B.

Ultra's system allows its members open access to all of Ultra's participating providers.

C.

Within Ultra's system, Dr. Craig serves as a coordinator of care or gatekeeper for the medical services that Ms. Chan receives.

D.

Ultra's network of providers includes Dr. Craig and Dr. Lee but not Arrow Hospital.

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Questions 49

One typical characteristic of an integrated delivery system (IDS) is that an IDS.

Options:

A.

Is more highly integrated structurally than it is operationally.

B.

Provides a full range of healthcare services, including physician services, hospital services, and ancillary services.

C.

Cannot negotiate directly with health plans, plan sponsors, or other healthcare purchasers.

D.

Performs a single business function, such as negotiating with health plans on behalf of all of the member providers.

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Questions 50

More procedures or services may be fully covered within the PPO network than those out of network.

Options:

A.

True

B.

False

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Questions 51

One feature of the Employee Retirement Income Security Act (ERISA) is that it:

Options:

A.

Requires self-funded employee benefit plans to pay premium taxes at the state level.

B.

Contains a pre-emption provision, which typically makes the terms of ERISA take precedence over any state laws that regulate employee welfare benefit plans.

C.

Contains strict reporting and disclosure requirements for all employee benefit plans except health plans.

D.

Requires that state insurance laws apply to all employee benefit plans except insured plans.

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Questions 52

The following organizations are the primary sources of accreditation of healthcare organizations:

Options:

A.

National Committee for Quality Assurance (NCQA)

B.

American Accreditation HealthCare Commission/URAC Of these organizations, performance data is included i

C.

A only

D.

B only

E.

A and B

F.

none of the above

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Questions 53

Member satisfaction is a critical element of a health plan's quality management program. A health plan can obtain information about member satisfaction with various aspects of the health plan from

Options:

A.

surveys completed by members following a visit to a provider

B.

surveys sent to plan members who have not received healthcare services during a specified time period

C.

periodic reports of complaints received by member services personnel

D.

all of the above

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Questions 54

One non-group market segment to which health plans market health plan products is the senior market, which is comprised mostly of persons over age 65 who are eligible for Medicare benefits. One factor that affects a health plan's efforts to market to the

Options:

A.

The Centers for Medicare and Medicaid Services (CMS) must approve all marketing materials used by health plans to market health plan products to the Medicare population

B.

managed Medicare plans typically require Medicare beneficiaries to purchase Medigap insurance to supplement gaps in coverage

C.

managed Medicare plans can refuse to cover persons with certain health problems

D.

the CMS prohibits health plans from using telemarketing to market health plan products to the Medicare population

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Questions 55

One of the most influential pieces of legislation in the advancement of health plans within the United States was the Health Maintenance Organization (HMO) Act of 1973. One of the provisions of the Act was that it

Options:

A.

exempted HMOs from all state licensure requirements.

B.

required all employers that offered healthcare coverage to their employees to offer only one type of federally qualified HMO.

C.

eliminated funding that supported the planning and start-up phases of new HMOs.

D.

established a process by which HMOs could obtain federal qualification

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Exam Code: AHM-250
Exam Name: Healthcare Management: An Introduction
Last Update: May 18, 2024
Questions: 367

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