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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

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

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

The actual number of providers included in a provider network can be based on staffing ratios. One true statement about staffing ratios is that, typically:

A.

A small health plan needs fewer physicians per 1,000 than does a large plan.

B.

A closely managed health plan requires fewer providers than does a loosely managed plan.

C.

Physician-to-enrollee ratios can be used directly only by network-within-a-network model HMOs.

D.

Medicare products require fewer providers than do employer-sponsored plans of the same size.

A health plan that delegates designated credentialing activities to an NCQA-centered or a Commission/URAC-centered credentials verification organization (CVO) is exempt from the due-diligence oversight requirements specified in the NCQA credentialing standards for all verification services for which the CVO has been certified:

A.

True

B.

False

The following statement(s) can correctly be made about contracting and reimbursement of specialty care physicians (SCPs):

A.

Typically, a health plan should attempt to control utilization of SCPs before attempting to place these providers under a capitation arrangement.

B.

Forms of specialty physician reimbursement used by health plans include a retainer and a bundled case rate.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

The following statements describe two types of HMOs:

The Elm HMO requires its members to select a PCP but allows the members to go to any other provider on its panel without a referral from the PCP.

The Treble HMO does not require its members to select a PCP. Treble allows its members to go to any doctor, healthcare professional, or facility that is on its panel without a referral from a primary care doctor. However, care outside of Treble's network is not reimbursed unless the provider obtains advance approval from the HMO.

Both HMOs use delegation to transfer certain functions to other organizations. Following the guidelines established by the NCQA, Elm delegated its credentialing activities to the Newnan Group, and the agreement between Elm and Newnan lists the responsibilities of both parties under the agreement. Treble delegated utilization management (UM) to an IPA. The IPA then transferred the authority for case management to the Quest Group, an organization that specializes in case management.

Both HMOs also offer pharmacy benefits. Elm calculates its drug costs according to a pricing system that requires establishing a purchasing profile for each pharmacy and basing reimbursement on the profile. Treble and the Manor Pharmaceutical Group have an arrangement that requires the use of a typical maximum allowable cost (MAC) pricing system to calculate generic drug costs under Treble's pharmacy program. The following statements describe generic drugs prescribed for Treble plan members who are covered by Treble's pharmacy benefits:

The MAC list for Drug A specifies a cost of 12 cents per tablet, but Manor pays 14 cents per tablet for this drug.

The MAC list for Drug B specifies a cost of 7 cents per tablet, but Manor pays 5 cents per tablet for this drug.

To calculate its drug costs, Elm uses a pricing system known as:

A.

Estimated acquisition cost (EAC)

B.

Package rate cost (PRC)

C.

Actual acquisition cost (AAC)

D.

Wholesale acquisition cost (WAC)

The following statements are about Medicaid health plan entities. Select the answer choice containing the correct statement:

A.

To keep Medicaid enrollment costs as low as possible, states typically prohibit the use of third-party entities known as enrollment brokers to handle the recruitment and enrollment of Medicaid recipients in health plan plans

B.

Primary care case managers (PCCMs) are individuals who contract with a state's Medicaid agency to provide primary care services mainly to urban areas.

C.

Typically, Medicaid beneficiaries must be given a choice between at least two health plan entities.

D.

Medicaid health plan entities are responsible for providing primary coverage for all dually-eligible beneficiaries.

One true statement about the Employee Retirement Income Security Act of 1974 (ERISA) is that:

A.

ERISA applies to all issuers of health insurance products, such as HMOs

B.

pension plans and employee welfare plans are exempt from any regulation under ERISA

C.

ERISA requires self-funded plans to comply with all state mandates affecting health insurance companies and health plans

D.

the terms of ERISA generally take precedence over any state laws that regulate employee welfare benefit plans

As an authorized Medicare+Choice plan, the Brightwell HMO must satisfy CMS requirements regulating access to covered services. In order to ensure that its network provides adequate access, Brightwell must

A.

Allow enrollees to determine whether they will receive primary care from a physician, nurse practitioner, or other qualified network provider

B.

Base a provider’s participation in the network, reimbursement, and indemnification levels on the provider’s license or certification

C.

Define its service area according to community patterns of care

D.

Require enrollees to obtain prior authorization for all emergency or urgently needed services

If a member of the Green Health Plan reasonably believes that a provider in Green's provider network was acting as Green's employee or agent while providing negligent care, then the member may have cause to bring action against the health plan. This legal concept is known as vicarious liability. Steps that Green can take to reduce its exposure to vicarious liability claims include:

A.

Placing restrictions on provider-member communication involving treatment decisions.

B.

Implementing risk management and quality assurance programs for its provider network.

C.

Including in its provider agreements and marketing and membership literature a statement that members of the Green provider network are not independent contractors.

D.

All of the above.

The Edgewood Health Plan uses a combination of structural, process, outcomes, and customer satisfaction measures to evaluate its network providers’ performance. Edgewood would correctly use outcomes measures to evaluate a provider’s

A.

Compliance with specific regulatory or accrediting requirement

B.

Appropriate use of specified procedures

C.

Patient progress following treatment

D.

Patient perceptions about how well the provider addresses medical problems

The provider contracts that the Indigo Health Plan has with its providers include a clause which states that Indigo's denial of payment for a certain medical procedure does not constitute a medical opinion and is not intended to interfere with the provider-patient relationship. This information indicates that Indigo's provider contracts include:

A.

A business confidentiality clause.

B.

A scope of services clause.

C.

An informed refusal clause.

D.

An exculpation clause.

Medicaid is a joint federal and state program that provides healthcare coverage for low-income, medically needy, and disabled individuals. Under the terms of this joint sponsorship, the

A.

Federal government is responsible for making all claim payments

B.

Federal government is responsible for determining the basic benefits that must be provided to eligible Medicaid beneficiaries

C.

State governments are responsible for setting minimum standards regarding eligibility, benefit coverage, and provider participation and reimbursement

D.

State governments are responsible for establishing overall regulation of the Medicaid program

The Bruin Health Plan is a Social Health Maintenance Organization (SHMO). As an SHMO, Bruin:

A.

Must provide Medicare participants with standard HMO benefits, as well as with limited long-term care benefits

B.

Does not need as great a variety of provider types or as complex a reimbursement method as does a traditional HMO

C.

Receives a payment that is based on reasonable costs and reasonable charges

D.

Most likely provides fewer supportive services than does a traditional HMO, because one of Bruin's goals is to minimize the use of community-based care

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:

A.

Cheryl Stovall, Thomas Kalil, and Roger Todd.

B.

Thomas Kalil and Roger Todd only.

C.

Thomas Kalil only.

D.

None of these individuals.

The provider contract that the Danube Health Plan has with the Viola Home Health Services Organization states that Danube will use a typical flat rate reimbursement arrangement to compensate Viola for the skilled nursing services it provides to Danube’s plan members. A portion of the contract’s reimbursement schedule is shown below:

Home Health Licensed Practical Nurse (LPN): $45 per visit or $90 per diem

Home Health Registered Nurse (RN): $50 per visit or $110 per diem

Last month, an LPN from Viola visited a Danube plan member and provided 1½ hours of home healthcare, and an RN from Viola visited another Danube plan member and provided 7 hours of home healthcare. The following statement(s) can correctly be made about Danube’s payment to Viola for these services:

A.

Danube most likely owes $90 for the LPN’s skilled nursing services and $110 for the RN’s skilled nursing services.

B.

Danube’s payment amount could be different from the amount called for in the reimbursement schedule if the level of care provided to one of these plan members was significantly different from the level of care normally provided by Viola’s RNs and LPNs.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

Medicaid beneficiaries pose a challenge for health plans attempting to establish Medicaid provider networks. Compared to membership in commercial health plans, Medicaid enrollees typically

A.

Require access to greater numbers of obstetricians and pediatricians

B.

Have stronger relationships with primary care providers

C.

Are less reliant on emergency rooms as a source of first-line care

D.

Need fewer support and ancillary services

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

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

Member satisfaction surveys help an health plan determine whether its providers are consistently delivering services to plan members in a manner that lives up to member expectations. Member satisfaction surveys allow the health plan to gather information about

A.

Amember’s reaction to services received during a specific encounter

B.

The reactions of specific subsets of the health plan’s membership

C.

Members’ positive and negative experience with the plan’s services

D.

All of the above

Dr. Michelle Kubiak has contracted with the Gem Health Plan, a Medicare+Choice health plan, to provide medical services to Gem's enrollees. Gem pays Dr. Kubiak $40 per enrollee per month for providing primary care. Gem also pays her an additional $10 per enrollee per month if the cost of referral services falls below a targeted level. This information indicates that, according to the substantial financial risk formula, Dr. Kubiak's referral risk under this contract is equal to:

A.

20%, and therefore this arrangement puts her at substantial financial risk

B.

20%, and therefore this arrangement does not put her at substantial financial risk

C.

25%, and therefore this arrangement puts her at substantial financial risk

D.

25%, and therefore this arrangement does not put her at substantial financial risk

The Azure Health Plan strives to ensure for its plan members the best possible level of care from its providers. In order to maintain such high standards, Azure uses a variety of quantitative and qualitative (behavioral) measures to determine the effectiveness of its providers. Azure then compares the clinical and operational practices of its providers with those of other providers outside the network, with the goal of identifying and implementing the practices that lead to the best outcomes.

Qualitative measures that Azure could use to assess provider performance include an evaluation of how

A.

Quickly the provider responds to plan members’ inquiries

B.

Effectively the provider communicates with plan members

C.

Often the provider refers plan members for ancillary services

D.

Many plan members visit the provider per month

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Total 202 questions
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