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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

Step-therapy is a form of prior authorization that reserves the use of more expensive medications for cases in which the use of less expensive medications has been unsuccessful. Step-therapy is appropriate for situations in which

1. A significant percentage of those treated with the initial therapy will require the second therapy

2. The delay created when a patient moves from one therapy to the next therapy will not cause serious or permanent effects

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

To see that utilization guidelines are consistently applied, UR programs rely on authorization systems. Determine whether the following statement about authorization systems is true or false:

Only physicians can make nonauthorization decisions based on medical necessity.

A.

True

B.

False

One true statement about state regulation of case management activities is that the majority of states

A.

have enacted laws that list specific quality management requirements for a case management program

B.

consider case management files to be medical records that must be retained for a specified length of time

C.

view case management similarly and follow similar patterns with their laws and regulations

D.

have enacted laws or regulations requiring licensure or certification of case managers

Recent laws and regulations have established new requirements for Medicaid eligibility. The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 affected Medicaid eligibility by

A.

severing the link between Medicaid and public assistance

B.

eliminating the need for applications for Medicaid and public assistance

C.

allowing states to provide healthcare benefits to groups outside the traditional Medicaid population

D.

providing supplemental funding for dual eligibles in the form of five-year block grants

Among this agency’s accreditation programs are accreditation for preferred provider organizations (PPOs), health plan call centers, and case management organizations. This agency classifies its standards as either “shall” standards or “should” standards.

A.

American Accreditation HealthCare Commission/URAC (URAC)

B.

Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

C.

Community Health Accreditation Program (CHAP)

D.

National Committee for Quality Assurance (NCQA)

This agency oversees the Federal Employee Health Benefits Program (FEHBP).

A.

Health Resources and Services Administration (HRSA)

B.

Office of Personnel Management (OPM)

C.

Department of Health and Human Services (HHS)

D.

Department of Justice (DOJ)

Patricia McLeod is a member of the Enterprise Health Plan, which operates in State X. Ms. McLeod is scheduled to undergo a unilateral mastectomy for the treatment of breast cancer. The surgical procedure will be performed by Dr. Kim Lee, a surgical oncologist. Based on Enterprise’s medical policy, the contract with the purchaser, and Ms. McLeod’s medical condition, Enterprise’s UR staff have determined that the appropriate course of care for Ms.

McLeod includes a 24-hour stay in the hospital following her surgery. State X, however, has a benefit mandate specifying health plan coverage for 48 hours of inpatient post-mastectomy care. In this situation, the length of hospital stay for which Enterprise must offer coverage is

A.

the length of stay deemed appropriate by Dr. Lee

B.

the 24-hour stay determined to be appropriate by Enterprise’s UR staff

C.

the length of stay deemed appropriate by Ms. McLeod

D.

the 48-hour length of stay specified by State X

Occasionally, employers combine workers’ compensation, group healthcare, and disability programs into an integrated product known as 24-hour coverage. One true statement about 24-hour coverage is that it typically

A.

increases administrative costs

B.

requires plans to maintain separate databases of patient care information

C.

exempts plans from complying with state workers’ compensation regulations

D.

allows plans to apply disability management and return-to-work techniques to nonoccupational conditions

This agency has authority over Programs of All-inclusive Care for the Elderly (PACE) and the State Children’s Health Insurance Program (SCHIP).

A.

Health Resources and Services Administration (HRSA)

B.

Office of Personnel Management (OPM)

C.

Department of Health and Human Services (HHS)

D.

Department of Justice (DOJ)

The paragraph below contains an incomplete statement. Select the answer choice containing the term that correctly completes the paragraph.

Each quality standard used by a health plan is associated with quality indicators. A ______________ indicator is a form of aggregate data indicator that produces results that fit within a specified range, such as the length of time to schedule an appointment.

A.

yes/no

B.

sentinel event

C.

discrete variable

D.

continuous variable

Adele Stanley, a member of the Greenhouse Health Plan, recently went to a network pharmacy to have a prescription filled. The pharmacist informed Ms. Stanley that the prescribed drug was not in the plan formulary and that reimbursement for the drug was not available except in extraordinary circumstances. The pharmacist asked Ms. Stanley if she would accept a generic substitute.

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

Greenhouse’s prescription drug reimbursement policy indicates that the plan formulary is classified as (open / closed), and that compliance by patients and providers is (mandatory / voluntary).

A.

open / mandatory

B.

open / voluntary

C.

closed / mandatory

D.

closed / voluntary

Health plans that offer healthcare programs for Medicare beneficiaries have a strong financial incentive for identifying high-risk seniors as early as possible. The identification of high-risk seniors is typically accomplished through the use of

A.

case management

B.

geriatric evaluation and management (GEM)

C.

intervention identification

D.

interdisciplinary home care (IHC)

Adele Stanley, a member of the Greenhouse Health Plan, recently went to a network pharmacy to have a prescription filled. The pharmacist informed Ms. Stanley that the prescribed drug was not in the plan formulary and that reimbursement for the drug was not available except in extraordinary circumstances. The pharmacist asked Ms. Stanley if she would accept a generic substitute.

If Ms. Stanley agrees to the generic substitution, she will receive a drug that

A.

has not been tested for safety and efficacy in large clinical trials

B.

is available without a prescription at a reasonable cost

C.

has been classified by the Food and Drug Administration (FDA) as safe, but that has not been proven fully effective

D.

contains active ingredients that are identical to those of the prescribed brand-name drug

The Quality Assessment Performance Improvement (QAPI) is a quality initiative designed to strengthen health plans’ efforts to protect and improve the health and satisfaction of Medicare and Medicaid health plan enrollees. The Centers for Medicare and Medicaid Services (CMS) requires compliance with QAPI from

A.

both Medicare+Choice plans and Medicaid health plans

B.

Medicare+Choice plans only

C.

Medicaid health plans only

D.

neither Medicare+Choice plans nor Medicaid health plans

Some health plans administer a questionnaire known as the Behavioral Risk Factor Surveillance System (BRFSS) as part of their health risk assessment (HRA) processes. The following statements are about the BRFSS. If statements (A) through (C) are all correct, select answer choice (D). Otherwise, select the one correct statement.

A.

This questionnaire was designed specifically for use by health plans.

B.

Each health plan must use the same form of the questionnaire, with no additions or modifications.

C.

This questionnaire monitors the prevalence of the major behavioral risks associated with illness and injury among adults.

D.

All of the above statements are correct.

Determine whether the following statement is true or false:

The utilization review (UR) process produces the greatest number of case management referrals.

A.

True

B.

False

The Riverside Health Plan is considering the following provider compensation options to use in its contracts with several provider groups and hospitals:

1. A discounted fee-for-service (DFFS) payment system

2. A case rate system

3. Capitation

If Riverside wants to use only those compensation methods that encourage the efficient use of resources, then the compensation method(s) that Riverside should consider for its new contracts include

A.

1, 2, and 3

B.

1 and 2 only

C.

2 and 3 only

D.

3 only

Readiness is an important consideration for the development of health promotion programs. Readiness refers to

A.

the availability of previously established health promotion programs to an health plan’s members through employers, providers, or community service agencies

B.

the appropriateness of a program’s educational approach, given the language, literacy level, and cultural sensitivities of the target population

C.

a member’s level of knowledge about existing health risks and problems and the member’s ability and willingness to adopt new health-related behaviors

D.

a member’s access to information technology, such as a video cassette recorder, a computer, or the Internet

Emilio Martinez, a member of the Bloom Health Plan, has recently been diagnosed with prostate cancer by his physician, Dr. Robert Cohen. Mr. Martinez has decided to participate in Bloom’s shared decision-making program for prostate cancer. On the basis of this information, it is most likely correct to say

1. That verification of Mr. Martinez’s understanding about his care options protects both Dr. Cohen and Bloom against charges of malpractice

2. That Mr. Martinez and Dr. Cohen will discuss the care options available to Mr. Martinez, but the ultimate decision about care is up to Dr. Cohen

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

In recent years, the demand for prescription drugs has increased dramatically. Factors that have contributed to this increase include

A.

increased education regarding the purpose and benefits of drug formularies

B.

reductions in the cost of prescription drugs

C.

increased use of direct-to-consumer (DTC) advertising

D.

all of the above

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Total 163 questions
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