AHIP AHM-520 Exam - Topic 3 Question 12 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 12
Topic #: 3

The Essential Health Plan markets a product for which it assumed total expenses to equal 92% of premiums. Actual data relating to this product indicate that expenses equal 89% of premiums. This information indicates that the expense margin for this product has:

Aa 3% favorable deviation

Ba 3% adverse deviation

Can 11% favorable deviation

Dan 11% adverse deviation

Show Suggested Answer

Suggested Answer: A

by Stephane at May 05, 2022, 01:38 PM

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Juan

5 months ago

Not sure, seems like they still overspent overall.

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Timothy

5 months ago

89% vs 92%? Simple math, it's a win!

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Arlyne

5 months ago

Wait, how is that 3% favorable? I thought it was worse than expected.

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Dorsey

5 months ago

Totally agree, it's definitely favorable!

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Wilda

5 months ago

The expenses are 89%, so that's a 3% favorable deviation.

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Kenneth

6 months ago

Hmm, I'm a little confused about the difference between the Tab ribbon and the List ribbon. I'll need to double-check that part.

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Lavonda

6 months ago

I'm feeling a bit lost on this one. All the options seem plausible, but I'm not sure which one is the most compelling benefit to focus on. Maybe I should review the course materials again to refresh my understanding of IT Service Management tools and their key features.

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Dyan

6 months ago

This looks straightforward. The fixed overhead capacity variance is the difference between the expected fixed overhead at capacity and the actual fixed overhead. Given the information provided, the answer is $6,000 favorable.

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