Free AHIP AHM-520 Exam Dumps

MultipleChoice

The Northwest Company offers its employees the option of choosing to receive their healthcare benefits from an HMO or from a traditional indemnity plan. The premiums for the HMO are lower than for the traditional indemnity plan. In this situation, it is correct to assume that:

Individual low utilizers are more likely to enroll in the traditional indemnity plan

Individual high utilizers are more likely to enroll in the HMO

MultipleChoice

Many clinicians are concerned about the development of practice guidelines that seek to define appropriate healthcare services that should be provided to a patient who has been diagnosed with a specific condition. To avoid the risk associated with using such guidelines, health plans should advise clinicians that the existence of such a guideline:

Establishes standards of care to be routinely utilized with all patients presenting a specific condition

Preempts a physician's judgment when assessing the specific factors related to a patient's condition

MultipleChoice

The amount of risk for health plan products is dependent on the degree of influence and the relationships that the health plan maintains with its providers. Consider the following types of managed care structures:

-Preferred provider organization (PPO) -Group model HMO -Staff model health maintenance organization (HMO) -Traditional health insurance

Of these health plan products, the one that would most likely expose a health plan to the highest risk is the:

MultipleChoice

A financial analyst wants to learn the following information about the

Forest health plan for a given financial period:

MultipleChoice

The following statement(s) can correctly be made about a health plan's cash receipts and cash disbursements budgets:

MultipleChoice

A health plan can use cost accounting in order to

MultipleChoice

The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:

-Current assets.....$5,000,000 -Total assets.....6,000,000 -Current liabilities.....2,500,000 -Total liabilities.....3,600,000 -Stockholders' equity.....2,400,000

Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.

For the previous financial period, Fairway's net profit margin was

MultipleChoice

The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements: Current assets.....$5,000,000

Total assets.....6,000,000

Current liabilities.....2,500,000

Total liabilities.....3,600,000

Stockholders' equity.....2,400,000

Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.

Assume that the healthcare industry average for the debt-to-equity ratio is 0.90. The following statement(s) can correctly be made about Fairway's debt to equity ratio:

MultipleChoice

The Nuevo health plan's capital structure consists of 30% debt and 70% equity. Nuevo's average after-tax cost of debt is 6% and its cost of equity is 12%. The following statement(s) can correctly be made about Nuevo's weighted average cost of capital (WACC):

MultipleChoice

The accounting department of the Enterprise health plan adheres to the following policies:

-Policy A---Report gains only after they actually occur -Policy B---Report losses immediately -Policy C---Record expenses only when they are certain -Policy D---Record revenues only when they are certain

Of these Enterprise policies, the ones that are consistent with the accounting principle of conservatism are Policies