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AHM-250 AHIP Healthcare Management: An Introduction Free Practice Exam Questions (2025 Updated)

Prepare effectively for your AHIP AHM-250 Healthcare Management: An Introduction certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 367 questions

As part of its utilization management (UM) system, the Creole Health Plan uses a process known as case management. The following individuals are members of the Creole Health Plan:

    Jill Novacek, who has a chronic respiratory condition.

    Abraham Rashad.

A.

Ms. Novacek, Mr. Rashad, and Mr. Devereaux

B.

Ms. Novacek and Mr. Rashad only

C.

Ms. Novacek and Mr. Devereaux only

D.

None of these members

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

A.

True

B.

False

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

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

A health plan may use one of several types of community rating methods to set premiums for a health plan. The following statements are about community rating. Select the answer choice containing the correct statement.

A.

Standard (pure) community rating is typically used for large groups because it is the most competitive rating method for large groups.

B.

Under standard (pure) community rating, a health plan charges all employers or other group sponsors the same dollar amount for a given level of medical benefits or health plan, without adjusting for factors such as age, gender, or experience.

C.

In using the adjusted community rating (ACR) method, a health plan must consider the actual experience of a group in developing premium rates for that group.

D.

The Centers for Medicare and Medicaid Services (CMS) prohibits health plans that assume Medicare risk from using the adjusted community rating (ACR) me

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

A.

dual choice

B.

cost shifting

C.

accreditation

D.

defensive medicine

Amendments to the HMO act 1973 do not permit federally qualified HMO’s to use

A.

Retrospective experience rating

B.

Adjusted community rating

C.

Community rating by class

D.

Community rating

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

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

In addition to the credentialing activities that an health plan performs when initially accepting a provider into its network, the health plan must also perform recredentialing of the same providers on an ongoing basis. Many of the same activities are per

A.

verification of a network provider's medical education and residency

B.

performance of site inspections in a provider's facilities

C.

review of information from a provider's quality improvement activities

D.

verification of a provider's licensure and certification

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

A.

True

B.

False

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

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

In accounting terminology, the items of value that a company owns—such as cash, cash equivalents, and receivables—are generally known as the company's

A.

revenue

B.

net income

C.

surplus

D.

assets

The following statements describe two types, or models, of HMOs:

The Quest HMO has contracted with only one multi-specialty group of physicians. These physicians are employees of the group practice, have an equity interest in the practice, and provide

A.

A captive group a staff model

B.

A captive group a network model

C.

An independent group a network model

D.

An independent group a staff model

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

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

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

A.

278

B.

397

C.

403

D.

920

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

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

Health plans use the following to determine the number of providers to add to a network:

A.

Staffing ratios

B.

Drive time

C.

Geographic availability

D.

All of the above

In order to generate exchanges with consumers, healthcare plan marketers use the four elements of the marketing mix: product, price, place (distribution), and

A.

segmentation

B.

publicity

C.

promotion

D.

plan design

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

A.

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

B.

are organized as stock companies for greater flexibility in raising capital

C.

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

D.

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

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

A.

a traditional HMO plan

B.

a managed indemnity plan

C.

a point of service (POS) option

D.

an exclusive provider organization (EPO)

Immediate evaluation and treatment of illness or injury can be provided in any of the following care settings:

A.

Hospital emergency departments

B.

Physician's offices

C.

Urgent care centers

If these settings are ranked in order of the cost of providing c

D.

A, B, C

E.

A, C, B

F.

B, C, A

G.

C, A, B

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Total 367 questions
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