AHIP AHM-530 Exam - Topic 3 Question 110 Discussion

Actual exam question for AHIP's AHM-530 exam

Question #: 110
Topic #: 3

In the paragraph below, two statements each contain a pair of terms enclosed in parentheses. Determine which term correctly completes each statement. Then select the answer choice that contains the two terms you have chosen.

A formulary lists the drugs and treatment protocols that are considered to be the preferred therapy for a given managed population. The Fairfax Health Plan uses the type of formulary which covers drugs that are on its preferred list as well as drugs that are not on its preferred list. This information indicates that Fairfax uses the (closed / open) formulary method. In using the formulary approach to pharmacy benefits management, Fairfax most likely experiences (higher / lower) costs for its members' prescription drugs than it would if it did not use a formulary.

Aclosed / higher

Bclosed / lower

Copen / higher

Dopen / lower

Show Suggested Answer

Suggested Answer: D

by Kris at Apr 08, 2025, 08:53 PM

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Shelia

9 months ago

I think it's actually a closed formulary.

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Vince

9 months ago

Totally agree, open formulary means more options!

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Pearly

9 months ago

Fairfax uses an open formulary, right?

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Sharmaine

10 months ago

Lower costs make sense with a formulary approach!

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Tresa

10 months ago

Wait, how can they cover non-preferred drugs? Sounds odd!

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Blair

10 months ago

I practiced a question similar to this, and I think it was about "open" formulary leading to "lower" costs. But I could be wrong on that one!

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Cristen

10 months ago

I feel like I might be mixing up the terms. Wasn't "closed" supposed to mean limited choices? I think that would lead to "lower" costs, but I'm not completely confident.

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Carlene

10 months ago

I remember studying that an "open" formulary usually leads to "higher" costs because it includes more options. I hope that's right!

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Milly

11 months ago

I think the formulary method is definitely "open" since it covers both preferred and non-preferred drugs. But I'm not sure about the cost part.

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Bernadine

11 months ago

The paragraph provides a good explanation of the differences between closed and open formularies. I feel prepared to determine which terms correctly complete the statements and select the right answer choice.

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Sherita

11 months ago

This is a tricky one. I'm not totally confident in my understanding of how formularies work and how they impact costs. I'll need to review the key concepts before selecting my answer.

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Leatha

11 months ago

Okay, I think I've got it. A closed formulary only covers drugs on the preferred list, while an open formulary covers both preferred and non-preferred drugs. And the costs would be lower with a closed formulary since they're limiting the options.

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Glory

11 months ago

Hmm, I'm a little unsure about the difference between a closed and open formulary. I'll need to think this through carefully to make sure I select the right terms.

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Kindra

12 months ago

This question seems pretty straightforward. I just need to carefully read the paragraph and determine which terms correctly complete the statements.

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Kayleigh

1 year ago

Lower costs with the open formulary? Sounds like a win-win to me! Fairfax is really looking out for their members' wallets. Bravo, Fairfax, bravo!

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Elfriede

1 year ago

Closed formulary, huh? That's like a bouncer at a club, only letting in the VIPs. Fairfax is keeping it exclusive, just the way they like it.

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Cherry

1 year ago

Definitely, but they must think it's worth it for their managed population.

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Aracelis

1 year ago

I bet their costs for prescription drugs are higher because of it.

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Felicidad

1 year ago

Yeah, it's like they have a VIP list for drugs.

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Galen

1 year ago

Fairfax Health Plan uses a closed formulary method.

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Merrilee

1 year ago

Higher costs for members, huh? Well, at least they'll have a wide selection of drugs to choose from with the open formulary. Variety is the spice of life, after all!

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Edison

1 year ago

That's true. With the open formulary, members have a wide selection of drugs to choose from.

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Leonida

1 year ago

Yes, that's correct. It covers drugs on its preferred list and drugs not on its preferred list.

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Rodolfo

1 year ago

I think Fairfax Health Plan uses the open formulary method.

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Gilma

1 year ago

Open formulary? Pfft, that's like giving members a free-for-all. Fairfax is playing it smart with the closed approach. Keeps things tidy, you know?

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Reita

1 year ago

Fairfax is being strategic with their approach.

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Alisha

1 year ago

Yeah, open formulary can lead to higher costs for sure.

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Sabrina

1 year ago

I agree, closed formulary is definitely more organized.

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Ivette

1 year ago

I'm not sure about this one. I think it could also be C) open / higher because having more options might lead to higher costs.

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Joseph

1 year ago

I agree with you, Gladys. Using a closed formulary usually results in higher costs for prescription drugs.

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Gladys

1 year ago

I think the answer is A) closed / higher.

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Cyndy

1 year ago

The closed formulary makes sense for Fairfax. It gives them more control over the preferred drugs, even if it means higher costs for members. Gotta keep those costs down, am I right?

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