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
Suggested Answer: C
Get Premium AHM-250 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
12 comments · newest first
HE
Helga
2 months ago
But B could be tricky. Exemptions can complicate things.
EM
Emilio
3 months ago
I agree, A makes sense. They need funds to operate.
DA
Dan
3 months ago
I think A is the right answer. Initial net worth is crucial.
FR
Francis
3 months ago
C sounds wrong, partnerships aren't the only way to get a COA.
HE
Hester
3 months ago
B is misleading, COA doesn't exempt from enabling statutes.
AM
Ammie
3 months ago
Wait, how can a COA not show fiscal soundness? That seems off.
ST
Staci
3 months ago
Totally agree, the financial standards are crucial!
HE
Helga
4 months ago
A is correct, they needed that net worth.
DE
Deane
4 months ago
I’m not really clear on the partnership requirement; I thought HMOs could be organized in different ways.
JE
Jesus
4 months ago
I practiced a question similar to this where the initial net worth was a key factor, so I might go with A.
HU
Hubert
4 months ago
I think the COA actually shows that they meet certain financial standards, so I’m leaning towards D being incorrect.
CA
Casie
4 months ago
I remember something about initial net worth requirements for HMOs, but I’m not sure if it was $1.5 million specifically.