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AHIP AHM-520 Exam - Topic 1 Question 123 Discussion

Over time, health plans and their underwriters have gathered increasingly reliable information about the morbidity experience of small groups.Generally, in comparison to large groups, small groups tend to
A) Have more frequent and larger claims fluctuations
B) Generate lower administrative expenses as a percentage of the total premium amount the group pays
C) More closely follow actuarial predictions regarding morbidity rates
D) All of the above

AHIP AHM-520 Exam - Topic 1 Question 123 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 123
Topic #: 1
[All AHM-520 Questions]

Over time, health plans and their underwriters have gathered increasingly reliable information about the morbidity experience of small groups.

Generally, in comparison to large groups, small groups tend to

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Suggested Answer: A

by Sue at Apr 06, 2026, 05:47 AM

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Paz
1 month ago
I disagree, B) seems off. Larger groups usually have lower admin costs.
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Shonda
2 months ago
A) is definitely true, small groups have more fluctuations.
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Merilyn
2 months ago
I thought all of these options could be true in some cases, but I need to double-check how they relate to small group dynamics.
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Denny
2 months ago
I feel like small groups might not follow actuarial predictions as closely as larger ones, but I can't recall the exact reasons.
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Gabriele
3 months ago
I think I saw a practice question that mentioned small groups having higher administrative costs, which makes me lean towards A.
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My
3 months ago
I remember studying that small groups can have more claim fluctuations, but I'm not sure if that's the only factor to consider.
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