AHIP Exam AHM-520 Topic 5 Question 85 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 85
Topic #: 5

The Poplar Company and a Blue Cross/Blue Shield organization have contracted to provide a typical fully funded health plan for Poplar's employees. One true statement about this health plan for Poplar's employees is that

APoplar bears the entire financial risk if, during a given period, the dollar amount of services rendered to Poplar plan members exceeds the dollar amount of premiums collected for this health plan

BPoplar and the Blue Cross/Blue Shield organization share the financial risk of paying for claims under Poplar's health plan

CThe Blue Cross/Blue Shield organization, upon acceptance of a premium, becomes the group plan sponsor for Poplar's health plan

DThe Blue Cross/Blue Shield organization, upon acceptance of a premium, bears the entire financial risk of paying for the administrative expenses associated with health plan operations

Show Suggested Answer

Suggested Answer: B

by Willard at Apr 23, 2024, 03:06 AM

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Rolf

20 days ago

Option B seems like the most logical choice to me. I mean, if Poplar was bearing all the risk, why would they need to contract with Blue Cross/Blue Shield in the first place?

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Eva

22 days ago

Haha, this question is a real brain-teaser! I bet the test writers are just trying to trip us up. But I think I've got it - the answer is B.

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Tamesha

24 days ago

Hmm, I'm not sure. I was leaning towards option A, but now I'm second-guessing myself. I guess I'll have to review the material again.

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2 months ago

I think the answer is A.

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