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AHM-530 AHIP Network Management Free Practice Exam Questions (2025 Updated)

Prepare effectively for your AHIP AHM-530 Network Management 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 202 questions

The following statements are about incentive programs used for providers. Select the answer choice containing the correct statement.

A.

Risk pools based on aggregate provider performance eliminate problems associated with “free riders.”

B.

A hospital bonus pool is usually split between the health plan and the PCPs.

C.

Bonus pools based on the performance of specific providers are usually easier to administer than those based on the performance of the plan as a whole.

D.

For providers, withhold arrangements eliminate the risk of losing base income.

Some jurisdictions have enacted corporate practice of medicine laws. One effect that corporate practice of medicine laws have had on HMO provider networks is that these laws typically

A.

require incorporated HMOs to practice medicine through licensed employees

B.

require HMOs to form exclusive contracts with physician groups who agree to dedicate all or most of their practices to HMO patients in return for a set payment or revenue-sharing

C.

restrict the ability of staff model HMOs to hire physicians directly, unless the physicians own the HMO

D.

encourage incorporated HMOs to obtain profits from their provisions of physician professional services

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

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

The NPDB specifies the entities that are eligible to request information from the data bank, as well as the conditions under which requests are allowed. In general, entities that are eligible to request information from the NPDB include

A.

medical malpractice insurers and the general public

B.

medical malpractice insurers and professional societies that are screening applicants for membership

C.

the general public and state licensing boards

D.

state licensing boards and professional societies that are screening applicants for membership

In 1996, Congress passed the Health Insurance Portability and Accountability Act (HIPAA), which increased the continuity and portability of health insurance coverage. One statement that can correctly be made about HIPAA is that it

A.

Applies to group health insurance plans only

B.

Limits the length of a health plan’s pre-existing condition exclusion period for a previously covered individual to a maximum of six months after enrollment.

C.

Guarantees access to healthcare coverage for small businesses and previously covered individuals who meet specified eligibility requirements.

D.

Guarantees renewability of group and individual health coverage, provided the insureds are still in good health

Decide whether the following statement is true or false:

The organizational structure of a health plan’s network management function often depends on the size and geographic scope of the health plan. With respect to the size of a health plan, it is correct to say that smaller health plans typically have less integration and more specialization of roles than do larger health plans.

A.

True

B.

False

Determine whether the following statement is true or false:

The NCQA has established a Physician Organization Certification (POC) program for the purpose of certifying medical groups and independent practice associations for delegation of certain NCQA standards, including data collection and verification for credentialing and recredentialing.

A.

True

B.

False

The Ross Health Plan compensates Dr. Cecile Sanderson on a FFS basis. In order to increase the level of reimbursement that she would receive from Ross, Dr. Sanderson submitted the code for a comprehensive office visit. The services she actually provided represented an intermediate level of service. Dr. Sanderson’s action is an example of a type of false billing procedure known as

A.

Cost shifting

B.

Churning

C.

Unbundling

D.

Upcoding

The sizes of the businesses in a market affect the types of health programs that are likely to be purchased. Compared to smaller employers (those with fewer than 100 employees), larger employers (those with more than 1,000 employees) are

A.

more likely to contract with indemnity health plans

B.

more likely to offer their employees a choice in health plans

C.

less likely to contract with health plans

D.

less likely to require a wide variety of benefits

The following statements are about some of the issues surrounding the contractual responsibilities of health plans. Select the answer choice containing the correct statement.

A.

Typically, health plans are required to pay completed claims within 10 days of submission.

B.

Health plans typically are prohibited from examining the financial soundness of a self-funded employer plan that relies on the health plan to pay providers for services received by the plan’s members.

C.

Patient delivery is one of the most significant factors that health plans consider when determining whether provider services should be reimbursed on a capitated or fee-for-service (FFS) basis.

D.

Health plans require all providers to agree to an exclusive provider contract.

The Aegean Health Plan delegated its utilization management (UM) program to the Silhouette IPA. Silhouette, in turn, transferred authority for case management to Brandon Health Services. In this situation, Brandon is best described as the

A.

delegator, and Aegean is ultimately responsible for Brandon’s performance

B.

delegator, and Silhouette is ultimately responsible for Brandon’s performance

C.

subdelegate, and Aegean is ultimately responsible for Brandon’s performance

D.

subdelegate, and Silhouette is ultimately responsible for Brandon’s performance

One important aspect of network management is profiling, or provider profiling. Profiling is most often used to

A.

measure the overall performance of providers who are already participants in the network

B.

assess a provider’s overall satisfaction with a plan’s service protocols and other operational areas

C.

verify a prospective provider’s professional licenses, certifications, and training

D.

familiarize a provider with a plan’s procedures for authorizations and referrals

The method that the Autumn Health Plan uses for reimbursing dermatologists in its provider network involves paying them out of a fixed pool of funds that is actuarially determined for this specialty. The amount of funds that Autumn allocates to dermatologists is based on utilization and costs of services for that discipline.

Under this reimbursement method, a dermatologist who is under contract to Autumn accumulates one point for each new referral made to the specialist by Autumn’s PCPs. If the referral is classified as complicated, then the dermatologist receives 1.5 points. The value of Autumn’s dermatology services fund for the first quarter was $15,000. During the quarter, Autumn’s PCPs made 90 referrals, and 20 of these referrals were classified as complicated.

In determining the first quarter payment to dermatologists, Autumn would accurately calculate the value of each referral point to be

A.

$111.11

B.

$125.00

C.

$150.00

D.

$166.67

Before incurring the expense of assembling a new PPO network, the Protect Health Plan conducted a cost analysis in order to determine the cost-effectiveness of renting an existing PPO network instead. In calculating the overall cost of renting the network, Protect assumed a premium of $2.52 per member per month (PMPM) and estimated the total number of members to be 9,000. This information indicates that Protect would calculate its annual network rental cost to be

A.

$42,857

B.

$56,700

C.

$272,160

D.

$680,400

One type of fee schedule payment system assigns a weighted unit value for each medical procedure or service based on the cost and intensity of that service. Under this system, the unit values for procedural services are generally higher than the unit values for cognitive services. This system is known as a

A.

Wrap-around payment system

B.

Relative value scale (RVS) payment system

C.

Resource-based relative value scale (RBRVS) system

D.

Capped fee system

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.

A.

Cure provision

B.

Hold-harmless provision

C.

Evergreen clause

D.

Exculpation clause

Open panel health plans can contract with individual providers or with various provider groups when developing their networks. The following statements are about factors that an open panel health plan might consider in contracting with different types of provider organizations. Select the answer choice that contains the correct statement.

A.

One limitation of contracting with multispecialty groups is that a health plan obtains only specialty consultants, but not PCPs.

B.

One benefit to a health plan in contracting with an integrated delivery system (IDS) is the ability to have a network in rapid order and to enter into a new market or one that is already competitive.

C.

A health plan that contracts with an individual practice association (IPA) has a greater ability to select and deselect individual physicians than when contracting directly with the providers.

D.

A health plan that contracts with an IDS is able to eliminate the antitrust risk that exists when contracting with an IPA.

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.

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

The Gladspell HMO has contracted with the Ellysium Hospital to provide subacute care to its plan members. Gladspell pays Ellysium by using a per diem reimbursement method.

If Gladspell’s per diem contract with Ellysium is typical, then the per diem payment will cover such medical costs as

A.

Laboratory tests

B.

Respiratory therapy

C.

Semiprivate room and board

D.

Radiology services

Health plans often negotiate compensation arrangements that transfer some or all of the financial risk associated with delivering healthcare services to network providers. The following statements are about these compensation arrangements. Select the answer choice containing the correct statement.

A.

A per diem system typically places a healthcare facility at risk for controlling utilization and costs internally.

B.

One likely reason that an health plan would use a fee schedule system to compensate providers is that this system transfers most of the financial risk to the provider.

C.

Under a salary system, a provider assumes no service risk.

D.

The use of a FFS or a salary system allows an health plan to transfer a greater proportion of financial risk to providers than does the use of capitation.

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Total 202 questions
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