Discuss AHIP AHM-530 Exam Topic 5 Question 84

Assume that the national average cost per covered employee for PPO rental networks is $3 per member per month (PMPM) and that the average monthly healthcare premium PMPM is $300. This information indicates that, if the number of health plan members is 10,000, then the annual network rental cost to the health plan would be:

A$30,000

B$360,000

C$9,000,000

D$12,000,000

Suggested Answer: B

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42 comments · newest first

Kasandra 11 months ago

I thought it would be higher, interesting!

Sylvia 11 months ago

That's $30,000, not $360,000 like some might think.

Hubert 12 months ago

Wait, are we sure about those numbers? Seems off.

Mona 12 months ago

Totally agree, simple math!

Jerry 1 year ago

It's $3 PMPM, so that's $30,000 annually for 10,000 members.

Dominque 1 year ago

I’m a bit confused about the options. If I multiply $3 by 10,000, I get $30,000 for one month, but then I’m not sure how to scale that to a year correctly.

Juliana 1 year ago

I feel like I’ve seen a similar question before, and I think the answer was in the hundreds of thousands, but I can’t recall the exact numbers.

Barb 1 year ago

I think the annual cost is just the monthly cost multiplied by 12 and then by the number of members. So, it should be $3 PMPM times 10,000 members times 12 months, right?

Ronny 1 year ago

I remember we calculated costs like this in class, but I’m not sure if I’m using the right formula for annual costs.

Brendan 1 year ago

I've got this! The answer is B, $360,000. I just multiplied the $3 PMPM by the 10,000 members and then by 12 months.

Virgie 1 year ago

Okay, let me think this through step-by-step. The average cost per covered employee is $3 PMPM, and the total number of members is 10,000. So to get the annual cost, I need to multiply the monthly cost by 12 months and the number of members.

Grover 1 year ago

Hmm, I'm a little unsure about this one. I need to make sure I understand the relationship between the average cost per covered employee and the total number of members.

Herman 1 year ago

This seems straightforward - I just need to calculate the annual network rental cost based on the given information.

Catarina 1 year ago

Okay, let me think this through. If I want to remove access to the page, I should probably set the permissions so that the Homepages administrator role is the only one that can access it.

Gwenn 1 year ago

Filing a lawsuit feels a bit extreme. I'd try the more diplomatic route of reaching out to users first and seeing if we can resolve this amicably before escalating to legal action.

Mari 1 year ago

I'm not entirely sure, but I remember something about statelessness from our last practice. Could that apply here?

Holley 1 year ago

Ugh, I'm not confident about this at all. Security responsibilities can be tricky to remember. I'll have to make an educated guess and hope for the best.

Jolanda 1 year ago

I'm gonna go with option B, $360,000. It's the only one that makes sense based on the information provided. Unless, of course, the health plan is run by a bunch of mathematically challenged llamas. Then all bets are off.

Ellen 1 year ago

↳ replying to Jolanda

I'm not sure about the llamas, but I'm going with option B too. $360,000 seems right.

Arletta 1 year ago

↳ replying to Jolanda

I'm leaning towards option B as well. $360,000 makes sense based on the data.

Fausto 1 year ago

↳ replying to Jolanda

I agree with option B, $360,000. It seems like the most logical choice.

Dana 1 year ago

↳ replying to Jolanda

I think it's option A, $30,000. The math checks out.

Rickie 1 year ago

Option B seems like the obvious choice here. Unless, of course, the health plan is using a gold-plated PPO network. Then it might be option D, $12,000,000. But I doubt it.

Yoko 1 year ago

↳ replying to Rickie

D) $12,000,000

Matt 1 year ago

↳ replying to Rickie

C) $9,000,000

Johana 1 year ago

↳ replying to Rickie

B) $360,000

Billye 1 year ago

↳ replying to Rickie

A) $30,000

Gladys 2 years ago

I'm feeling a bit like a mathematician today. Let's see, $3 PMPM for 10,000 members, that's gotta be $360,000 per year. Option B it is!

Javier 1 year ago

↳ replying to Gladys

So, $30,000 per month times 12 months equals $360,000 per year. Option B it is!

Shawnee 1 year ago

↳ replying to Gladys

Yeah, $3 per member per month adds up to $30,000 per month for 10,000 members.

Santos 2 years ago

↳ replying to Gladys

I think it's $360,000 per year too. Option B sounds right.

Youlanda 2 years ago

Hmm, let me think this through. 10,000 members at $3 PMPM... yep, option B is the correct answer.

Jacki 1 year ago

↳ replying to Youlanda

Definitely, option B is the correct choice.

Gail 1 year ago

↳ replying to Youlanda

So the annual network rental cost would be $30,000.

Ettie 1 year ago

↳ replying to Youlanda

That makes sense, $3 per member per month for 10,000 members adds up to $30,000.

Eliz 1 year ago

↳ replying to Youlanda

I agree, option B is the correct answer.

Laurel 2 years ago

This is a straightforward math problem. I'll go with option B, $360,000, as the annual network rental cost.

Miriam 2 years ago

↳ replying to Laurel

Yes, I agree. It's a simple calculation based on the given information.

Trinidad 2 years ago

↳ replying to Laurel

I think the answer is B) $360,000.

Ty 2 years ago

I'm not sure, but I think the answer is A) $30,000 too. It seems like the most reasonable option.

Verda 2 years ago

I agree with Wayne. It makes sense based on the information given.

Wayne 2 years ago

I think the answer is A) $30,000.

AHIP AHM-530 Exam - Topic 5 Question 84 Discussion