AHIP AHM-250 Exam - Topic 4 Question 34 Discussion

Actual exam question for AHIP's AHM-250 exam

Question #: 34
Topic #: 4

The National Association of Insurance Commissioners (NAIC) developed the Small Group Model Act to enable small groups to obtain accessible, yet affordable, group health benefits. The model law limits the rate spread, which is the difference between the highest and lowest rates that a health plan charges small groups, to a particular ratio.

According to the Model Act, for example, if the lowest rate an HMO charges a small group for a given set of medical benefits is $40, then the maximum rate the HMO can charge for the same set of benefits is

A$60

B$80

C$120

D$160

Show Suggested Answer

Suggested Answer: B

by Josephine at May 07, 2022, 09:29 PM

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Cecil

5 months ago

Wow, I didn't know they had such strict limits!

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Merissa

5 months ago

$80 seems way too high for small groups!

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Cristy

5 months ago

I thought it was supposed to be more flexible than that.

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Colby

5 months ago

So, that means the max rate is $60, right?

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France

5 months ago

The rate spread is capped at 1.5 times the lowest rate.

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Harley

6 months ago

Hmm, I'm a bit unsure about this one. The question mentions a "legacy system" which makes me think there could be some technical challenges involved. I'll need to think carefully about the best way to approach this.

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Brunilda

6 months ago

This seems straightforward. RFM is a well-known method for segmenting customers based on their recency, frequency, and monetary value. I'm confident I can select the correct option here.

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Adrianna

6 months ago

These ethics questions always trip me up. I'm gonna read the options carefully and use process of elimination.

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Lucille

6 months ago

I'm a little confused by the wording of this question. I'll need to think it through carefully before selecting an answer.

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Frederica

6 months ago

Okay, let's see. The question mentions configuring optional criteria for special pricing, so I'll focus on the options that seem most relevant to that, like Purchasing Code, Minimum Quantity, and Currency Code.

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