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AHM-540 AHIP Medical Management Free Practice Exam Questions (2025 Updated)

Prepare effectively for your AHIP AHM-540 Medical 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 163 questions

For this question, if answer choices (1) through (3) are all correct, select answer choice (4). Otherwise, select the one correct answer choice.

Health plans sometimes delegate selected medical management activities to their providers or other external entities. Activities that are frequently delegated include

A.

utilization review (UR)

B.

quality management (QM)

C.

preventive health services

D.

all of the above

Determine whether the following statement is true or false:

The delegation of medical management functions to providers can occur without the transfer of financial risk.

A.

True

B.

False

Benchmarking is a quality improvement strategy used by some health plans. With regard to benchmarking, it is correct to say that

A.

cost-based benchmarking reveals why some areas of a health plan perform better or worse than comparable areas of other organizations

B.

diagnosis-related groups (DRGs) are a source of benchmarking data that describe individual procedures and cover both inpatient and outpatient care

C.

patient billing records provide a much more accurate account of procedure costs for benchmarking than do current procedural terminology (CPT) codes

D.

the focus of benchmarking for health plan has shifted from identifying the lowest cost practices to identifying best practices

The Harbor Health Plan’s formulary policy encourages network pharmacists who are asked to fill a prescription for a costly, brand-name drug to dispense a different chemical entity within the same drug class in order to reduce costs. This type of drug substitution is referred to as

A.

generic substitution, and prescriber approval is not required

B.

generic substitution, and prescriber approval is always required

C.

therapeutic substitution, and prescriber approval is not required

D.

therapeutic substitution, and prescriber approval is always required

When analyzing and applying HRA results, the Multistate Health Plan noted sampling bias. This information indicates that the HRA results

A.

do not accurately depict the characteristics of the Multistate member population under study because of errors in data collection

B.

are more accurate for individual Multistate members than they are for the total population

C.

cannot be stated in numerical terms

D.

indicate variation in the number, types, and severity of behavioral risks presented by Multistate’s members

One method of transferring the information in electronic medical records (EMRs) is through a health information network (HIN). The following statements are about HINs. Three of the statements are true and one is false. Select the answer choice containing the FALSE statement.

A.

A HIN may afford a health plan better measurements of outcomes and provider performance.

B.

The use of a HIN typically increases a health plan’s exposure to liability for poor care.

C.

Most HINs are Internet-based rather than built on proprietary computer networks.

D.

Currently, the majority of health plans do not have HINs that are capable of transferring medical records among their network providers.

Acute care refers to healthcare services for medical problems that

A.

are expected to continue for a minimum of 30 days

B.

are typically treated in a provider’s office or outpatient facility

C.

require prompt, intensive treatment by healthcare providers

D.

require low utilization of resources

The paragraph below contains two pairs of terms or phrases enclosed in parentheses. Determine which term or phrase in each pair correctly completes the paragraph. Then select the answer choice containing the terms or phrases that you have chosen.

The Millway Health Plan received a 15% reduction in the price of a particular pharmaceutical based on the volume of the drug Millway purchased from the manufacturer. This reduction in price is an example of a (rebate / price discount) and (is / is not) dependent on actual provider prescribing patterns.

A.

rebate / is

B.

rebate / is not

C.

price discount / is

D.

price discount / is not

In order to achieve changes in outcomes, health plans make changes to existing structures and processes. The introduction of preauthorization as an attempt to control overuse of services is an example of a reactive change. Reactive changes are typically

A.

both planned and controlled

B.

planned, but they are rarely controlled

C.

controlled, but they are rarely planned

D.

neither planned nor controlled

The following statement(s) can correctly be made about the characteristics of peer review:

1. Peer review is applicable to either single episodes of care or to entire programs of care

2. Most peer review is conducted concurrently

3. Under the Health Care Quality Improvement Program (HCQIP), peer review is required for services furnished to Medicare and Medicaid recipients enrolled in health plans

A.

All of the above

B.

1 and 2 only

C.

1 and 3 only

D.

2 and 3 only

To facilitate electronic commerce (eCommerce), a health plan may establish a secured extranet. One true statement about a secured extranet is that it is

A.

based on Web-based technologies

B.

available only to the employees of the health plan

C.

publicly available, so the potential exists for unauthorized access to a health plan’s proprietary systems

D.

used to handle the majority of health plan eCommerce

In order to be effective, a clinical pathway must improve quality and decrease costs.

A.

True

B.

False

Designing effective medical management programs for Medicare beneficiaries requires an understanding of the unique health needs of the Medicare population. One characteristic of Medicare beneficiaries is that they typically

A.

do not experience mental health problems

B.

consume more than half of all prescription drugs

C.

are likely to equate quality with the technical aspects of clinical procedures

D.

require longer and more costly recovery periods following acute illnesses or injuries than does the general population

Health plans often use accreditation as a means of evaluating the quality of care delivered to plan members. Accreditation of subacute care providers is available from the

A.

National Committee for Quality Assurance (NCQA)

B.

Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

C.

American Accreditation HealthCare Commission/URAC (URAC)

D.

Foundation for Accountability (FACCT)

In order for a health plan’s performance-based quality improvement programs to be effective, the desired outcomes must be

A.

achievable within a specified timeframe

B.

defined in terms of multiple results

C.

expressed in subjective, qualitative terms

D.

all of the above

Determine whether the following statement is true or false:

Participation in disease management programs is currently voluntary.

A.

True

B.

False

CMS has developed two prototype programs—Programs of All-inclusive Care for the Elderly (PACE) and the Social Health Maintenance Organization (SHMO) demonstration project—to deliver healthcare services to Medicare beneficiaries. From the answer choices below, select the response that correctly identifies the features of these programs.

A.

PACE-annual limits on benefits for nursing home and community-based care SHMO-no limits on long-term care benefits

B.

PACE-provide long-term care only SHMO-provide acute and long-term care

C.

PACE-enrollees must be age 65 or older SHMO-enrollees must be age 55 or older

D.

PACE-enrollment open to nursing home certifiable Medicare beneficiaries only SHMO-enrollment open to all Medicare beneficiaries

The Garnet Health Plan uses provider profiling to measure and improve provider performance. Provider profiling most likely allows Garnet to

A.

evaluate all providers without considering differences in risk

B.

focus on specific clinical decisions of Garnet’s providers rather than on patterns of care

C.

identify the outliers and high-value providers in its provider network

D.

measure the effectiveness, but not the efficiency, of Garnet’s providers

Helena Ray, a member of the Harbrace Health Plan, suffers from migraine headaches. To treat Ms. Ray’s condition, her physician has prescribed Upzil, a medication that has Food and Drug Administration (FDA) approval only for the treatment of depression. Upzil has not been tested for safety or effectiveness in the treatment of migraine headache. Although Harbrace’s medical policy for migraine headache does not include coverage of Upzil, Harbrace has agreed to provide extra-contractual coverage of Upzil for Ms. Ray.

The following statement(s) can correctly be made about Harbrace’s use of extra-contractual coverage:

1. Harbrace’s medical policy most likely establishes the procedure that Harbrace used to evaluate the value of Upzil for treating Ms. Ray

2. One way for Harbrace to reduce the risk associated with extra-contractual coverage is by including an alternative care provision in its contracts with purchasers

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

One of the steps in drug utilization review (DUR) is defining optimal drug use, which can be accomplished by applying diagnosis criteria and drug-specific criteria. Drug-specific criteria are standards that identify the

A.

appropriate dosages, duration of treatment, and other elements related to the use of a particular drug

B.

actual prescribing and dispensing patterns for a particular drug

C.

types of diseases, conditions, or patients for which a drug should be used

D.

cost-effectiveness of all possible drug treatments for a particular condition

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Total 163 questions
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