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AHM-250 Healthcare Management: An Introduction Questions and Answers

Questions 4

Emily Brown works for Integral Health Plan and represents the company as a board member for the board of directors. Which best describes Emily's position?

Options:

A.

Community Representative

B.

Inside Director

C.

Outside Director

D.

None of these

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Questions 5

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 6

A differences between managed indemnity & traditional indemnity

Options:

A.

Include precertification and utilization review techniques

B.

Both are the same

C.

Include network and quality review techniques

D.

A & B

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Questions 7

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 8

A particular health plan offers a higher level of benefits for services provided in-network than for out-of-network services. This health plan requires preauthorization for certain medical services.

With regard to the steps that the health plan's claims e

Options:

A.

should assume that all services requiring preauthorization have been preauthorized

B.

should investigate any conflicts between diagnostic codes and treatment codes before approving the claim to ensure that the appropriate payment is made for the claim

C.

need not verify that the provider is part of the health plan's network before approving the claim at the in-network level of benefits

D.

need not determine whether the member is covered by another health plan that allows for coordination of benefits

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Questions 9

One way in which a health plan can support an ethical environment is by

Options:

A.

requiring organizations with which it contracts to adopt the plan's formal ethical policy

B.

developing and maintaining a culture where ethical considerations are integrated into decision making at the top organizational level only

C.

establishing a formal method of managing ethical conflicts, such as using an ethics task force or bioethics consultant

D.

maintaining control of policy development by removing providers and members from the process of developing and implementing policies and procedures that provide guidance to providers and members confronted with ethical issues

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Questions 10

General HMO is building a provider network and is considering Universal Hospital as an addition to its network. Minimum requirements that General should consider in determining whether Universal is qualified to participate in General's network include A.

Options:

A.

Both A and B

B.

A only

C.

B only

D.

Neither A nor B

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Questions 11

As part of its quality management program, the Lyric Health Plan regularly compares its practices and services with those of its most successful competitor. When Lyric concludes that its competitor's practices or services are better than its own, Lyric im

Options:

A.

Benchmarking.

B.

Standard of care.

C.

An adverse event.

D.

Case-mix adjustment.

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Questions 12

In most cases, medical errors are caused by breakdowns in the healthcare system rather than by provider mistakes.

Options:

A.

True

B.

False

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Questions 13

The following statements are about standards set forth in the Quality Improvement System for Managed Care (QISMC), established by the Health Care Financing Administration (HCFA, now known as the Centers for Medicare and Medicaid Services).

Options:

A.

As a result of the Balanced Budget Refinement Act (BBRA), PPOs are required to meet all QISMC quality requirements.

B.

QISMC standards typically do not apply to such Medicare services as mental health or substance abuse services.

C.

Medicaid primary care case manager (PCCM) programs are subject to the same QISMC quality standards and performance measures as are all other Medicare and Medicaid programs.

D.

QISMC standards and guidelines are required for Medicare MCOs, but they are applicable to Medicaid MCOs at the discretion of the individual states.

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Questions 14

The parties to the contractual relationship that provides Castle's group health coverage to Knoll employees are

Options:

A.

Castle and Knoll only

B.

Knoll and all covered Knoll employees only

C.

Castle, Knoll, and all covered Knoll employees

D.

Castle and all covered Knoll employees only

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Questions 15

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 16

The NAIC designed a small group model law to enable small groups to obtain accessible, yet affordable, group health benefits. Specifically, the model law limits the rate spread. According to this model law, if the lowest rate that an HMO charges a small g

Options:

A.

$80

B.

$120

C.

$160

D.

$240

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Questions 17

The Granite Health Plan is a coordinated care plan (CCP) that participates in the Medicare+Choice program. This information indicates that Granite

Options:

A.

must comply with all state-mandated benefits and provider requirements

B.

must offer each of its enrollees a Medicare supplement

C.

places primary care t the censer of the delivery system and focuses on managing patient care at all levels

D.

most likely must cover Medicare Part A, but not Medicare Part B, benefits

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Questions 18

The process of calculating the appropriate premium to charge purchasers, given the degree of risk represented by the individual or group, the expected costs to deliver medical services, and the expected marketability and competitiveness of the health plan

Options:

A.

financing

B.

rating

C.

underwriting

D.

budgeting

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Questions 19

The following statements are about information management in health plans. Three of the statements are true and one statement is false. Select the answer choice containing the FALSE statement:

Options:

A.

Health plans find EDI useful for transmitting data among different health plan locations.

B.

EDI is different from eCommerce in the EDI is the transfer of data, typically in batches, while ecommerce is a back-and-forth exchange of information concerning individual transactions.

C.

The majority of health plan eCommerce occurs via proprietary computer networks.

D.

Benefits that health plans can receive from using electronic data interchange.

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Questions 20

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 21

Following a report by the Institute of Medicine on the incidence and consequences of medical errors, a national task force recommended implementation of a nationwide mandatory system of collecting, analyzing, and reporting standardized information about m

Options:

A.

random change

B.

structural change

C.

haphazard change

D.

reactive change

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Questions 22

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 23

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 24

Health plans may use different capitation arrangements for different levels of service. One typical capitation arrangement provides a capitation payment that may include primary care only, or both primary and secondary care, but not ancillary services. The

Options:

A.

global capitation arrangement

B.

gatekeeper arrangement

C.

carve-out arrangement

D.

partial capitation arrangement

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Questions 25

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 26

Health savings accounts were created by which of the following laws:

Options:

A.

COBRA

B.

HIPAA

C.

Medicare Modernization Act

D.

None of the Above

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Questions 27

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 28

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 29

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 hi

Options:

A.

$60

B.

$80

C.

$120

D.

$160

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Questions 30

Each time a patient visits a provider he has to pay a fixed dollar amount?

Options:

A.

Deductible

B.

Copayment

C.

Capitation

D.

Co-insurance

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Questions 31

Which of the following is an example of physician only model of operational integration?

Options:

A.

Consolidated medical group

B.

Integrated Delivery System

C.

Medical Foundation

D.

Both B & C

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Questions 32

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 33

Utilization management techniques that most HMOs use for hospital providers include:

Options:

A.

Discharge planning

B.

Case management

C.

Co-payment for office visits

D.

A & B

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Questions 34

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 35

Medigap policies were standardized into ten standard benefit pl ranging from A-J by the ____

Options:

A.

Omnibus Budget Reconciliation Act (OBRA) of 1990

B.

Tax Equity & Fiscal Responsibility Act (TEFRA) of 1982

C.

Medicare Modernization Act (MMA) of 2003

D.

Balanced Budget Act (BBA) of 1997

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Questions 36

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 professionals in academia and businesspeople who do not work for Polestar. Dr. Carolyn Porter, a university president, is on Polestar's board. From the following answer choices, select the response containing the term that correctly identifies Polestar's relationship to Polaris and the term that describes the type of board member represented by Dr. Porter

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.

Poles tar's relationship to Polaris: holding company: Type of board member: outside director

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Questions 37

Traditional Medicare includes two parts: Medicare Part A and Medicare Part B. With regard to the ways these parts differ from each other, it is correct to say that Medicare Part A

Options:

A.

provides benefits for physicians' professional services, whereas Medicare Part B provides basic hospitalization insurance

B.

is financed through premiums paid by covered persons and from the federal government's general tax revenues, whereas Medicare Part B is funded primarily through a payroll tax imposed on employers and workers

C.

provides 100% coverage for eligible medical expenses, whereas Medicare Part B includes annual deductible and coinsurance provisions

D.

is provided automatically to most eligible persons, whereas Medicare Part B is a voluntary program

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Questions 38

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

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Questions 39

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

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Questions 40

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

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Questions 41

A health plan's ability to establish an effective provider network depends on the characteristics of the proposed service area and the needs of proposed plan members. It is generally correct to say that

Options:

A.

health plans have more contracting options if providers are affiliated with single entities than if providers are affiliated with multiple entities

B.

urban areas offer more flexibility in provider contracting than do rural areas

C.

consumers and purchasers in markets with little health plan activity are likely to be more receptive to HMOs than to loosely managed plans such as PPOs

D.

large employers tend to adopt health plans more slowly than do small companies

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Questions 42

One ethical principle in managed care is the principle of justice/equity, which specifically holds that MCOs and their providers have a duty to

Options:

A.

treat each member in a manner that respects his or her own goals and values

B.

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

C.

present information honestly to their members and to honor commitments to their members

D.

make sure they do not harm their members

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Questions 43

Medicaid is a jointly funded federal and state program that provides hospital and medical expense coverage to low-income individuals and certain aged and disabled individuals. One characteristic of Medicaid is that

Options:

A.

providers who care for Medicaid recipients must accept Medicaid payment as payment in full for services rendered

B.

Medicaid requires recipients to pay deductibles, copayments, and coinsurance amounts for all services

C.

Medicaid is always the primary payer of benefits

D.

benefits offered by Medicaid programs are federally mandated and do not vary by state

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Questions 44

The Ark Health Plan, is currently recruiting providers in preparation for its expansion into a new service area. A recruiter for Ark has been meeting with Dr. Nan Shea, a pediatrician who practices in Ark's new service area, in order to convince her to be

Options:

A.

Credentialing

B.

Accreditation

C.

A sentinel event

D.

A screening program

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Questions 45

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 46

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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Questions 47

One component of information systems used by health plans incorporates membership data and information about provider reimbursement arrangements and analyzes transactions according to contract rules. This information system component is known as

Options:

A.

A contract management system

B.

A credentialing system

C.

A legacy system

D.

An interoperable communication system

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Questions 48

The following sentence contains an incomplete statement with two missing words. Select the answer choice that contains the words that correctly fill the two blanks, respectively. The philosophy of consumer choice involves having consumers play a(n) ______

Options:

A.

Decreased … Increased

B.

Increased … Decreased

C.

Increased … Increased

D.

Decreased … Decreased

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Questions 49

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 50

Natalie Chan is a member of the Ultra Health Plan, a health plan. Whenever she needs nonemergency 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. Cr

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 51

Phillip Tsai is insured by both a traditional indemnity health insurance plan, which is his primary plan, and a health plan, which is his secondary plan. Both plans have typical coordination of benefits (COB) provisions, but neither has a nonduplication of

Options:

A.

$0

B.

$300

C.

$400

D.

$900

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Questions 52

The following paragraph contains an incomplete statement. Select the answer choice containing the term that correctly completes the statement. In early efforts to manage healthcare costs, traditional indemnity health insurers included in their health pla

Options:

A.

cost shifting

B.

deductibles

C.

underwriting

D.

copy

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Questions 53

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 54

One HMO model can be described as an extension of a group model HMO because it contracts with multiple group practices, rather than with a single group practice. This HMO model is known as the

Options:

A.

staff model HMO

B.

IPA model HMO

C.

direct contract model HMO

D.

network model HMO

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Questions 55

The contract between the Honolulu MCO and Beverley Hills Hospital contains a 90 day cure provision. The Beverley Hills Hospital breached one of the contract requirements on July 31, 2004. The hospital remedied the problem by October 31, 2004. Which of the

Options:

A.

The contract would not be terminated as Beverley Hills hospital rectified the problem within 90 days.

B.

The contract would be terminated as Beverley Hills hospital was required to notify Honolulu MCO about the problem at least 90 days in advance.

C.

The contract would be terminated as Beverley Hills hospital was required to rectify the problem within 90 days.

D.

The contract would not be terminated as Beverley Hills hospital may escape adherence to the cure provision.

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Exam Code: AHM-250
Exam Name: Healthcare Management: An Introduction
Last Update: Apr 22, 2024
Questions: 367

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