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

8 months ago

I thought it would be higher, interesting!

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Sylvia

8 months ago

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

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Hubert

9 months ago

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

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Mona

9 months ago

Totally agree, simple math!

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Jerry

9 months ago

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

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Dominque

9 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

10 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

10 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

10 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

10 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

10 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

10 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

10 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

10 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

10 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

10 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

10 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

1 year 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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