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AHIP AHM-520 Exam - Topic 3 Question 12 Discussion

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:
A) a 3% favorable deviation
B) a 3% adverse deviation
C) an 11% favorable deviation
D) an 11% adverse deviation

AHIP AHM-520 Exam - Topic 3 Question 12 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 12
Topic #: 3
[All AHM-520 Questions]

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:

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Suggested Answer: A

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

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Juan
11 months ago
Not sure, seems like they still overspent overall.
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Timothy
11 months ago
89% vs 92%? Simple math, it's a win!
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Arlyne
11 months ago
Wait, how is that 3% favorable? I thought it was worse than expected.
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Dorsey
11 months ago
Totally agree, it's definitely favorable!
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Wilda
11 months ago
The expenses are 89%, so that's a 3% favorable deviation.
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Kenneth
12 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
12 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
12 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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