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AHIP AHM-250 Exam - Topic 2 Question 128 Discussion

Before the Hill Health Maintenance Organization (HMO) received a certificate of authority (COA) to operate in State X, it had to meet the state's licensing requirements and financial standards which were established by legislation that is identical to the
C) Receive from the IPA the same monthly compensation for each Hill plan member under the PCP's care, whereas the specialists receive compensation based on a percentage discount from their normal fees.
A) Receive compensation based on the volume and variety of medical services they perform for Hill plan members, whereas the specialists receive compensation based solely on the number of plan members who are covered for specific services.
B) Have no financial incentive to practice preventive care or to focus on improving the health of their plan members, whereas the specialists have a positive incentive to help their plan members stay healthy.
D) Receive compensation based on a fee schedule, whereas the specialists receive compensation based on per diem charges.

AHIP AHM-250 Exam - Topic 2 Question 128 Discussion

Actual exam question for AHIP's AHM-250 exam
Question #: 128
Topic #: 2
[All AHM-250 Questions]

Before the Hill Health Maintenance Organization (HMO) received a certificate of authority (COA) to operate in State X, it had to meet the state's licensing requirements and financial standards which were established by legislation that is identical to the

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Suggested Answer: C

by Verdell at Jun 20, 2026, 01:16 PM

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Helga
29 days ago
But B could be tricky. Exemptions can complicate things.
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Emilio
1 month ago
I agree, A makes sense. They need funds to operate.
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Dan
1 month ago
I think A is the right answer. Initial net worth is crucial.
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Francis
1 month ago
C sounds wrong, partnerships aren't the only way to get a COA.
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Hester
2 months ago
B is misleading, COA doesn't exempt from enabling statutes.
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Ammie
2 months ago
Wait, how can a COA not show fiscal soundness? That seems off.
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Staci
2 months ago
Totally agree, the financial standards are crucial!
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Helga
2 months ago
A is correct, they needed that net worth.
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Deane
2 months ago
I’m not really clear on the partnership requirement; I thought HMOs could be organized in different ways.
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Jesus
3 months ago
I practiced a question similar to this where the initial net worth was a key factor, so I might go with A.
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Hubert
3 months ago
I think the COA actually shows that they meet certain financial standards, so I’m leaning towards D being incorrect.
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Casie
3 months ago
I remember something about initial net worth requirements for HMOs, but I’m not sure if it was $1.5 million specifically.
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