AHIP AHM-530 Exam - Topic 5 Question 84 Discussion

Actual exam question for AHIP's AHM-530 exam

Question #: 84
Topic #: 5

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

Show Suggested Answer

Suggested Answer: B

by Candida at Apr 13, 2024, 07:43 AM

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Kasandra

7 months ago

I thought it would be higher, interesting!

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Sylvia

7 months ago

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

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Hubert

7 months ago

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

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Mona

7 months ago

Totally agree, simple math!

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Jerry

8 months ago

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

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Dominque

8 months 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.

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Juliana

8 months 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.

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Barb

8 months 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?

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Ronny

8 months 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.

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Brendan

8 months 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.

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Virgie

8 months 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.

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Grover

8 months 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.

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Herman

9 months ago

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

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Catarina

9 months 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.

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Gwenn

9 months 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.

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Mari

9 months ago

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

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Holley

9 months 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.

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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.

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Ellen

12 months ago

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

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Arletta

1 year ago

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

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Fausto

1 year ago

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

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Dana

1 year ago

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

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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.

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