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AHM-530 Network Management Questions and Answers

Questions 4

One true statement about the Medicaid program in the United States is that:

Options:

A.

The federal financial participation (FFP) in a state's Medicaid program ranges from 20% to 40% of the state's total Medicaid costs

B.

Medicaid regulations mandate specific minimum benefits, under the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program, for all Medicaid recipients younger than age 30

C.

The individual states have responsibility for administering the Medicaid program

D.

Non-disabled adults and children in low-income families account for the majority of direct Medicaid spending

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Questions 5

The Zephyr Health Plan identifies members for whom subacute care might be an appropriate treatment option. The following individuals are members of Zephyr:

Selena Tovar, an oncology patient who requires radiation oncology services, chemotherapy, and rehabilitation.

Dwight Borg, who is in excellent health except that he currently has sinusitis.

Timothy O'Shea, who is beginning his recovery from brain injuries caused by a stroke.

Subacute care most likely could be an appropriate option for:

Options:

A.

Ms. Tovar, Mr. Borg, and Mr. O'Shea

B.

Ms. Tovar and Mr. O'Shea only

C.

Mr. O'Shea only

D.

Mr. Borg only

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Questions 6

The following statements are about the organization of network management functions of health plans. Select the answer choice containing the correct response:

Options:

A.

Compared to a large health plan, a small health plan typically has more integration among its network management activities and less specialization of roles.

B.

It is usually more efficient to have a large health plan's provider relations representatives located in the health plan's corporate headquarters rather than based in regional locations that are close to the provider offices the representatives cover.

C.

An health plan's provider relations representatives are usually responsible for conducting an initial orientation of providers and educating providers about health plan developments, rather than recruiting and assisting with the selection of new providers.

D.

In general, a health plan that uses a centralized approach for some of its network management activities should not use a decentralized approach for other network management activities.

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Questions 7

One true statement about the responsibilities of providers under typical provider contracts is that most provider contracts:

Options:

A.

include a clause which states that providers must maintain open communications with patients regarding appropriate treatment plans, unless the services are not covered by the member's health plan

B.

hold that the responsibility of the provider to deliver services is usually subject to the provider's receipt of information regarding the eligibility of the member

C.

contain a gag clause or a gag rule

D.

include a clause that explicitly places the responsibility for medical care on the health plan rather than on the provider of medical services

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Questions 8

There are several approaches to providing Medicaid health plan. One such approach involves the use of organizations who contract with the state’s Medicaid agency to provide primary care as well as administrative services. These organizations are known as

Options:

A.

Enrollment brokers

B.

Primary care case managers (PCCMs)

C.

Certified medical assistants (CMAs)

D.

Prepaid health plans (PHPs)

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Questions 9

From the following answer choices, choose the type of clause or provision described in this situation.

The Idlewilde Health Plan includes in its provider contracts a clause or provision that allows the terms of the contract to renew unchanged each year.

Options:

A.

Cure provision

B.

Hold-harmless provision

C.

Evergreen clause

D.

Exculpation clause

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Questions 10

In contracting with providers, a health plan can use a closed panel or open panel approach. One statement that can correctly be made about an open panel health plan is that the participating providers

Options:

A.

must be employees of the health plan, rather than independent contractors

B.

are prohibited from seeing patients who are members of other health plans

C.

typically operate out of their own offices

D.

operate according to their own standards of care, rather than standards of care established by the health plan

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Questions 11

The Festival Health Plan is in the process of recruiting physicians for its provider network. Festival requires its network physicians to be board certified. The following individuals are provider applicants whose qualifications are being considered:

Applicant 1 has completed his surgical residency, and he recently passed a qualifying examination in his field.

Applicant 2 has completed her residency in dermatology, and she is scheduled to take qualifying examinations in the next Six months.

Applicant 3 completed his residency in pediatric medicine six years ago, but he has not yet passed a qualifying examination in his field.

With regard to these applicants, it can correctly be stated that only

Options:

A.

Applicants 1 and 2 are board certified

B.

Applicants 2 and 3 are board certified

C.

Applicant 1 is board certified

D.

Applicant 3 is board certified

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Questions 12

The provider contract between the Ocelot Health Plan and Dr. Enos Zorn, one of the health plan’s participating providers, is a brief contract which includes, by reference, an Ocelot provider manual. This manual contains much of the information found in Ocelot’s comprehensive provider contracts. The following statements are about Dr. Zorn’s provider contract. Select the answer choice containing the correct statement.

Options:

A.

All statements in the provider contract shall be deemed to be warranties, because all statements of facts contained in the contract must be true only in those respects material to the contract.

B.

Because the provider manual is part of the contract, Ocelot must make sure that its provider manual is comprehensive and up-to-date.

C.

Because the provider contract is a brief contract, Ocelot most likely is prohibited from amending the contract unilaterally, even if it gives Dr. Zorn advance notice of its intent to amend the contract.

D.

Areas that should be covered in the provider manual, and not in the body of the contract, include any specific legal issues relevant to the contract.

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Questions 13

The actual number of providers included in a provider network may be based on staffing ratios. Staffing ratios relate the number of

Options:

A.

Potential providers in a plan’s network to the number of individuals in the area to be served by the plan

B.

Providers in a plan’s network to the number of enrollees in the plan

C.

Providers outside a plan’s network to the number of providers in the plan’s network

D.

Support staff in a plan’s network to the number of medical practitioners in the plan’s network

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Questions 14

In most health plan pharmacy networks, the cost component of the reimbursement formula is based on the average wholesale price (AWP). One true statement about the AWP for prescription drugs is that

Options:

A.

AWPs tend to vary widely from region to region of the United States

B.

The AWP is often substantially higher than the actual price the pharmacy pays for prescription drugs

C.

A health plan’s contracted reimbursement to a pharmacy for prescription drugs is typically the AWP plus a percentage, such as 5%

D.

The AWP usually is lower than the estimated acquisition cost (EAC) for most prescription drugs

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Questions 15

In open panel contracting, there are several types of delivery systems. One such delivery system is the faculty practice plan (FPP). One likely result that a health plan will experience by contracting with an FPP is that the health plan will

Options:

A.

be able to select most of the physicians in the FPP

B.

achieve the highest level of cost effectiveness possible

C.

experience limited control over utilization

D.

achieve the most effective case management possible

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Questions 16

The introductory paragraph of a provider contract is generally followed by a section called the recitals. The recitals section of the contract typically specifies the

Options:

A.

Purpose of the agreement

B.

Manner in which the provider is to bill for services

C.

Definitions of key terms to be used in the contract

D.

Rate at which the provider will be compensated

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Questions 17

A provider contract describes the responsibilities of each party to the contract. These responsibilities can be divided into provider responsibilities, health plan responsibilities, and mutual obligations. Mutual obligations typically include

Options:

A.

provisions for marketing the plan’s product

B.

payment arrangements between the plan and the provider

C.

verification of the plan’s eligibility to do business

D.

management of the contents of members’ medical records

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Questions 18

Promise, Inc., a corporation that specializes in cancer services, employs its physicians and support staff and provides facilities and ancillary services for cancer patients. Promise has contracted with the Cordelia Health Plan to provide all specialty services for Cordelia plan members who are undergoing cancer treatment. In return, Promise receives a capitated amount from Cordelia. Promise is an example of a type of specialty services organization known as a

Options:

A.

Specialty IPA

B.

Disease management company

C.

Single specialty management specialist

D.

Specialty network management company

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Questions 19

Most health plan contracts provide an outline of the criteria that a healthcare service must meet in order to be considered “medically necessary.” Typically, in order for a healthcare service to be considered medically necessary, the service provided by a physician or other healthcare provider to identify and treat a member’s illness or injury must be

Options:

A.

Consistent with the symptoms of diagnosis

B.

Furnished in the least intensive type of medical care setting required by the member’s condition

C.

In compliance with the standards of good medical practice

D.

All of the above

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Questions 20

The provider contract between the Regal Health Plan and Dr. Caroline Quill contains a type of termination clause known as termination without cause. One true statement about this clause is that it

Options:

A.

Requires Regal to send a report to the appropriate accrediting agency if the health plan terminates Dr. Quill’s contract without cause

B.

Requires that Regal must base its decision to terminate Dr. Quill’s contract on clinical criteria only

C.

Allows either Regal or Dr. Quill to terminate the contract at any time, without any obligation to provide a reason for the termination or to offer an appeals process

D.

Allows Regal to terminate Dr. Quill’s contract at the time of contract renewal only, without any obligation to provide a reason for the termination or to offer an appeals process

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Questions 21

The method of pharmaceutical reimbursement under which a plan member obtains prescription drugs from participating network pharmacies by presenting proper identification and paying a specified copayment is the

Options:

A.

Wholesale acquisition cost (WAC) approach

B.

Reimbursement approach

C.

Service approach

D.

Cognitive approach

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Questions 22

Provider panels can be either narrow or broad. Compared to a similarly sized health plan that uses a broad provider panel, a health plan that uses a narrow provider panel most likely can expect to

Options:

A.

Experience higher contracting costs

B.

Encounter increased difficulty in utilization management

C.

Have to charge higher health plan premiums

D.

Experience lower provider relations costs

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Questions 23

To protect providers against business losses, many health plan-provider contracts include carve-out provisions to help providers manage financial risk. The following statements are examples of such provisions:

The Apex Health Plan carves out immunizations from PCP capitations. Apex compensates PCPs for immunizations on a case rate basis.

The Bengal Health Plan carves out behavioral healthcare services from the scope of PCP services because these services require specialized knowledge and skills that most PCPs do not possess.

From the answer choices below, select the response that best identifies the types of carve-outs used by Apex and Bengal.

Options:

A.

Apex: disease-specific carve-out

Bengal: specialty services carve-out

B.

Apex: disease-specific carve-out

Bengal: specific-service carve-out

C.

Apex: specific-service carve-out

Bengal: specialty services carve-out

D.

Apex: specific-service carve-out

Bengal: disease-specific carve-out

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Questions 24

Grant Pelham is covered by both a workers’ compensation program and a group health plan provided by his employer. The Shipwright Health Plan administers both programs. Mr. Grant was injured while on the job and applied for benefits.

Mr. Pelham’s group health insurance plan and workers’ compensation both provide benefits to cover expenses incurred as a result of illness or injury. However, unlike traditional group insurance coverage, workers’ compensation

Options:

A.

Provides reimbursement for lost wages

B.

Requires employees who suffer a work-related illness or injury to obtain care from specified network providers

C.

Covers all injuries and illnesses, regardless of their cause

D.

Requires employees to share the cost of treatment through deductible, coinsurance, and benefit limits

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Questions 25

One difference between a fee-for-service (FFS) reimbursement arrangement and capitation is that the FFS arrangement:

Options:

A.

Is a prospective payment system, whereas capitation is a retrospective payment system

B.

Has a potential to induce providers to underutilize medical resources, whereas capitation does not have this potential disadvantage

C.

Bases the amount of reimbursement on the actual medical services delivered, whereas reimbursement under capitation is independent of the actual volume and cost of services provided

D.

Is most often used by health plans to reimburse healthcare facilities, whereas capitation is most often used by health plans to reimburse specialty care providers

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Questions 26

The provider contract that Dr. Bijay Patel has with the Arbor Health Plan includes a no-balance-billing clause. The purpose of this clause is to:

Options:

A.

prohibit Dr. Patel from collecting payments from Arbor plan members for medical services that he provided them, even if the services are explicitly excluded from the benefit plan

B.

allow Dr. Patel to bill patients for services only if the services are considered to be medically necessary

C.

establish the guidelines used to determine if Arbor is the primary payor of benefits in a situation in which an Arbor plan member is covered by more than one health plan

D.

require Dr. Patel to accept Arbor's payment as payment in full for medical services that he provides to Arbor plan members

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Questions 27

The Ventnor Health Plan requires the physicians in its provider network to be board certified. Ventnor has received requests to become a part of the network from the following specialists:

Cheryl Stovall, who is currently in the process of completing a residency in her field of specialization.

Thomas Kalil, who has completed a residency in his field of specialization and has passed a qualifying examination in that field within two years of completing his residency.

Roger Todd, who has completed a residency in his field of specialization but has not passed a qualifying examination in that field.

Ventnor's requirement of board certification is met by:

Options:

A.

Cheryl Stovall, Thomas Kalil, and Roger Todd.

B.

Thomas Kalil and Roger Todd only.

C.

Thomas Kalil only.

D.

None of these individuals.

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Questions 28

The provider contract that the Canyon health plan has with Dr. Nicole Enberg specifies that she cannot sue or file any claims against a Canyon plan member for covered services, even if Canyon becomes insolvent or fails to meet its financial obligations. The contract also specifies that Canyon will compensate her under a typical discounted fee-for-service (DFFS) payment system.

During its recredentialing of Dr. Enberg, Canyon developed a report that helped the health plan determine how well she met Canyon's standards. The report included cumulative performance data for Dr. Enberg and encompassed all measurable aspects of her performance. This report included such information as the number of hospital admissions Dr. Enberg had and the number of referrals she made outside of Canyon's provider network during a specified period. Canyon also used process measures, structural measures, and outcomes measures to evaluate Dr. Enberg's performance.

Canyon used a process measure to evaluate the performance of Dr. Enberg when it evaluated whether:

Options:

A.

Dr. Enberg's young patients receive appropriate immunizations at the right ages

B.

Dr. Enberg conforms to standards for prescribing controlled substances

C.

The condition of one of Dr. Enberg's patients improved after the patient received medical treatment from Dr. Enberg

D.

Dr. Enberg's procedures are adequate for ensuring patients' access to medical care

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Questions 29

The BBA of 1997 specifies the ways in which a Medicare+Choice plan can establish and use provider networks. A Medicare+Choice plan that operates as a private fee for service (PFFS) plan is allowed to

Options:

A.

limit the size of its network to the number of providers necessary to meet the needs of its enrollees

B.

require providers to accept as payment in full an amount no greater than 115% of the Medicare payment rate

C.

refuse payment to non-network providers who submit claims for Medicare-covered expenses

D.

shift all risk for Medicare-covered services to network providers

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Questions 30

Following statements are about accreditation of health plans:

Options:

A.

The National Committee for Quality Assurance (NCQA) serves as the primary accrediting agency for most health maintenance organizations (HMOs).

B.

The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) has developed standards that can be used for the accreditation of hospitals, but not for the accreditation of health plan provider networks or health plan plans.

C.

States are required to adopt the model standards developed by the National Association of Insurance Commissioners (NAIC), an organization of state insurance regulators that develops standards to promote uniformity in insurance regulations.

D.

Accreditation is an evaluative process in which a health plan undergoes an examination of its operating procedures to determine whether the procedures meet designated criteria as defined by the federal government or by the state governments.

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Exam Code: AHM-530
Exam Name: Network Management
Last Update: May 19, 2024
Questions: 202

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