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AHIP AHM-520 Exam - Topic 2 Question 56 Discussion

The following information was presented on one of the financial statements prepared by the Rouge health plan as of December 31, 1998: When calculating its cash-to-claims payable ratio, Rouge would correctly divide its:
B) Cash by its reported claims and its incurred but not reported claims (IBNR)
A) Cash by its reported claims only
C) Reported claims by its cash
D) Reported claims and its incurred but not reported claims (IBNR) by its cash

AHIP AHM-520 Exam - Topic 2 Question 56 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 56
Topic #: 2
[All AHM-520 Questions]

The following information was presented on one of the financial statements prepared by the Rouge health plan as of December 31, 1998: When calculating its cash-to-claims payable ratio, Rouge would correctly divide its:

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Suggested Answer: B

by Ezekiel at Aug 03, 2022, 01:18 AM

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Jamal
9 months ago
C is totally wrong, it’s all about the ratio!
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Maynard
9 months ago
Wait, are we really counting IBNR? Seems off.
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Stefany
9 months ago
I agree with B, that makes the most sense.
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Wai
10 months ago
I thought it was A, just reported claims?
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Arlene
10 months ago
Definitely B, you need to include IBNR for accuracy.
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Remona
10 months ago
I think we definitely divide cash by reported claims only, but I’m not 100% confident. It seems like IBNR might complicate things unnecessarily.
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Kristin
10 months ago
I’m a bit confused about whether we should just use reported claims or include IBNR too. I feel like I need to double-check my notes on this.
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Kristeen
10 months ago
I remember a similar question where we had to consider IBNR, so I feel like option B makes the most sense here.
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Karan
10 months ago
I think the cash-to-claims payable ratio should include both reported claims and IBNR, but I'm not entirely sure if that's how we calculated it in practice.
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Dean
10 months ago
Hmm, I'm not too familiar with masking policies in SQL. I'll have to think this one through carefully.
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Malcom
10 months ago
This is a good test of my knowledge on financial statements. I'll need to apply my understanding of the definitions and classifications to determine which option is not a non-current asset. I'm feeling pretty confident I can figure this out.
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Darrin
10 months ago
Okay, let me review the options again. Picoseconds, microseconds, nanoseconds, or milliseconds? I think nanoseconds sounds right, but I'll double-check my notes to be sure.
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