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AHM-250 Exam Dumps - Healthcare Management: An Introduction

Question # 4

Historically most HMOs have been

A.

Closed-access HMO

B.

Closed-panel HMO

C.

Open-access HMO

D.

Open-panel HMO

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Question # 5

According to the IRS, which of the following is not an allowable preventive care service?

A.

Smoking cessation programs.

B.

Periodic health examinations.

C.

Health club memberships.

D.

Immunizations for children and adults.

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Question # 6

Before the Leo Health Maintenance Organization (HMO) received a certificate of authority (COA) to operate in State X, it had to meet the state's licensing requirements and financial standards which were established by legislation that is identical to the

A.

receive compensation based on the volume and variety for medical services they perform for Leo plan members, whereas the specialists receive compensation based solely on the number of plan members who are covered for specific services

B.

have no financial incentive to practice preventive care or to focus on improving the health of their plan members, whereas the specialists have a positive incentive to help their plan members stay healthy

C.

receive from the IPA the same monthly compensation for each Leo plan member under the PCP's care, whereas the specialists receive compensation based on a percentage discount from their normal fees

D.

receive compensation based on a fee schedule, whereas the specialists receive compensation based on per diem charges

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Question # 7

The following statements describe healthcare services delivered to health plan members by plan providers. Select the statement that describes a service that would most likely require utilization review and authorization.

A.

Adele Farnsworth visited a dermatologist to have a mole removed from her arm.

B.

Jonathan Lang underwent an electrocardiogram (EKG) during an office visit with his cardiologist.

C.

Corinne Maxwell underwent physical therapy after being hospitalized for hip replacement surgery.

D.

Jose Redriguez, a 70-year-old Medicare patient, received a flu shot as part of his annual physical examination.

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Question # 8

Which of the following statements is FALSE?

A.

The license that HMOs get in each state is called ‘Certificate of Authority’

B.

The HMO contracts directly with the individual physicians who provide the medical services to the HMO members in a variation of the IPA model called direct contract model HMO.

C.

All medicare/mediclaim beneficiaries should comply with utilization management requirements set forth by HCFA

D.

HMO’s usually impose high coinsurance or deductible requirements

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Question # 9

Which of the following is WRONG?

A.

Computer Based Patient Records Institute (CPRI) developed the standards for digital imaging of xrays.

B.

HL7 developers focuses on interchange of Clinical Health Data

C.

ANSI, a voluntary national standards organization, creates a consensus based process by which fair and equitable standards can be developed and serves as a legitmizer of standards.

D.

American Health Information Management Association focuses on EDI standards for exchange of clinical data

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Question # 10

The Hill Health Plan designed a set of benefits that it packaged in the form of a PPO product. Hill then established a pricing structure that allowed its product to compete in the small group market, and it developed advertising designed to inform potential

A.

An indemnity wraparound plan

B.

A self-funded plan

C.

An aggregate stop-loss plan

D.

A fully funded plan

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Question # 11

The following statements are about the accessibility of healthcare coverage and medical care in the United States. Select the answer choice that contains the correct statement.

A.

A person’s employment status as a full-time employee guarantees that person access to healthcare coverage.

B.

Most people who have healthcare coverage are covered under an individual insurance policy rather than a group insurance plan.

C.

The percentage of the population without healthcare coverage is evenly distributed throughout the United States.

D.

Hospital closings have occurred disproportionately in rural areas and inner cities and have reduced access to healthcare in these areas.

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Question # 12

Consolidation of patient information in a single location as can be used by independent providers is an example of

A.

Structural Integration

B.

Operational Integration

C.

Business Integration

D.

None of the above

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Question # 13

Keith Murray is a 45 year old chartered accountant & is employed in Livingstone consultancy firm. He has been paying payroll taxes for the past 15 years. Which of the following statements is true regarding Medicare Part A entitlement?

A.

Keith shall be entitled to Part A benefits when he attains 65 years of age

B.

Keith’s wife shall be entitled to Part A benefits when she attains 65 years of age

C.

Keith’s wife shall be required to pay a monthly premium in order to receive Medicare Part A benefits

D.

Both a & b

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Question # 14

What is a mathematical process that involves using a number of hypothetical situations that, in total, will reasonably reflect an event that will occur in real life

A.

Forecasting

B.

Modelling

C.

Both a and b

D.

None of the above

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Question # 15

The Helm MCO segmented the non-group market for its new healthcare product by using factors such as education level, gender, and household composition. The Amberly MCO segmented the non-group market for its products based on the approaches by which it sol

A.

demographic product or benefit

B.

geographic distribution channel

C.

demographic distribution channel

D.

geographic product or benefit

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Question # 16

Each time a patient visits a provider he has to pay a fixed dollar amount?

A.

Deductible

B.

Copayment

C.

Capitation

D.

Co-insurance

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Question # 17

In order to measure the expenses of institutional utilization, Holt Healthcare Group uses the standard formula to calculate hospital bed days per 1,000 plan members per year. On October 23, Holt used the following information to calculate the bed days per

A.

278

B.

397

C.

403

D.

920

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Question # 18

During an open enrollment period in 1997, Amy Hadek enrolled through her employer for group health coverage with the Owl Health Plan, a federally qualified HMO. At the time of her enrollment, Ms. Hadek had three pre-existing medical conditions: angina, fo

A.

the angina, the high blood pressure, and the broken ankle

B.

the angina and the high blood pressure only

C.

none of these conditions

D.

the broken ankle only

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Question # 19

Ed O'Brien has both Medicare Part A and Part B coverage. He also has coverage under a PBM plan that uses a closed formulary to manage the cost and use of pharmaceuticals. Recently, Mr. O'Brien was hospitalized for an aneurysm. Later, he was transferred by

A.

Confinement in the extended-care facility after his hospitalization.

B.

Transportation by ambulance from the hospital to the extended-care facility.

C.

Physicians' professional services while he was hospitalized.

D.

physicians' professional services while he was at the extended-care facility.

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Question # 20

From the following answer choices, choose the description of the ethical principle that best corresponds to the term Autonomy

A.

Health plans and their providers are obligated not to harm their members

B.

Health plans and their providers should treat each member in a manner that respects the member's goals and values, and they also have a duty to promote the good of the members as a group

C.

Health plans and their providers should allocate resources in a way that fairly distributes benefits and burdens among the members

D.

Health plans and their providers have a duty to respect the right of their members to make decisions about the course of their lives

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Question # 21

From the following choices, choose the definition that best matches the term Screening

A.

A technique used to educate plan members on how to distinguish between minor problems and serious conditions and effectively treat minor problems themselves

B.

A technique used to determine if a health condition is present even if a member has not experienced symptoms of the problem

C.

A technique in which information about a plan member's health status, personal and family health history, and health-related behaviors is used to predict the member's likelihood of experiencing specific illnesses or injuries

D.

A technique used to evaluate the medical necessity, appropriateness, and cost-effectiveness of healthcare services for a given patient

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Question # 22

A public employer, such as a municipality or county government would be considered which of the following?

A.

Employer-employee group

B.

Multiple-employer group

C.

Affinity group

D.

Debtor-creditor group

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Question # 23

The following statements describe two types, or models, of HMOs:

The Quest HMO has contracted with only one multi-specialty group of physicians. These physicians are employees of the group practice, have an equity interest in the practice, and provide

A.

A captive group a staff model

B.

A captive group a network model

C.

An independent group a network model

D.

An independent group a staff model

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Question # 24

Health plans often program into their claims processing systems certain criteria that, if unmet, will prompt further investigation of a claim. In an automated claims processing system, these criteria may signal the need for further review when, for example

A.

Encounter reports

B.

Diagnostic codes

C.

Durational ratings

D.

Edits

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Question # 25

If most of the physicians, or many of the physicians in a particular specialty, are affiliated with a single entity, then a health plan building a network in the service area _____________.

A.

Has many contracting options available.

B.

Should not contract with that entity

C.

Most likely needs to contract with that entity

D.

Should attempt to disband the existing affiliations

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Question # 26

Eleanor Giambi is covered by a typical 24-hour managed care program. One characteristic of this program is that it:

A.

Provides Ms. Giambi with healthcare coverage for any illness or injury, but only if the cause of the illness or injury is work-related.

B.

Combines the group health plan and disability plan offered by Ms. Giambi's employer with workers' compensation coverage.

C.

Requires Ms. Giambi and her employer to each pay half of the cost of this coverage.

D.

Requires Ms. Giambi to pay specified deductibles and copayments before receiving benefits under this program for any illness or injury.

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Question # 27

For this question, select the answer choice containing the terms that correctly complete the blanks labeled A and B in the paragraph below.

NCQA offers Quality Compass, a national database of performance and accreditation information submitted by managed

A.

Health Plan Employer Data and Information Set (HEDIS) mandatory

B.

Health Plan Employer Data and Information Set (HEDIS) voluntary

C.

ORYX mandatory

D.

ORYX voluntary

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Question # 28

The Stateside Health Plan uses the following outcomes measures to evaluate the quality of its diabetes disease management program.

Measure A: Incidence of foot ulcers among long-term diabetes patients

Measure B: Ability of long-term diabetes patients to m

A.

Measure A clinical status Measure B patient perception

B.

Measure A clinical status Measure B functional status

C.

Measure A functional status Measure B patient perception

D.

Measure A functional status Measure B clinical status

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Question # 29

The following statements are about accreditation in health plans. Select the answer choice that contains the correct statement.

A.

Accreditation is typically performed by a panel of physicians and administrators employed by the health plan under evaluation.

B.

All accrediting organizations use the same standards of accreditation.

C.

Results of accreditation evaluations are provided only to state regulatory agencies and are not made available to the general public.

D.

Accreditation demonstrates to an health plan's external customers that the plan meets established standards for quality care.

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Question # 30

Traditional Medicare includes two parts: Medicare Part A and Medicare Part B. With regard to the ways these parts differ from each other, it is correct to say that Medicare Part A

A.

provides benefits for physicians' professional services, whereas Medicare Part B provides basic hospitalization insurance

B.

is financed through premiums paid by covered persons and from the federal government's general tax revenues, whereas Medicare Part B is funded primarily through a payroll tax imposed on employers and workers

C.

provides 100% coverage for eligible medical expenses, whereas Medicare Part B includes annual deductible and coinsurance provisions

D.

is provided automatically to most eligible persons, whereas Medicare Part B is a voluntary program

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Question # 31

One among the following is a reason that limit access to health care for US people.

A.

Life Style of the people

B.

Concentration of physicians in highly populated areas.

C.

Advancement in information technology

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Question # 32

George was covered by a united health care insurance policy. This policy says that Geroge has to pay $300 out of pocket for the medical expenses in that year before united health care will start to reimburse the medical expense incurred for George. What is the term used to call the out of pocket payment made by George.

A.

Co-payment

B.

Deductible

C.

Coinsurance

D.

None of the above

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Question # 33

The National Committee for Quality Assurance (NCQA) is a nonprofit organization that accredits health plans and other healthcare organizations. Under the current NCQA accreditation program, a health plan's accreditation score is determined, in part, by pe

A.

is a performance-measurement tool designed to help healthcare purchasers and consumers compare quality offered by different plans.

B.

divides performance measures into 8 domains, and organizes reporting measures under these domains.

C.

is updated annually and measures are changed or new measures added.

D.

all of the above

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Question # 34

The Robust Health Plan sometimes uses prospective experience rating to calculate the premiums for a group. Under prospective experience rating, Robust most likely will:

A.

At the end of a rating period, the financial gains and losses experienced by the group during that rating period and, if the group's experience during the period is better than expected, refund part of the group's premium in the form of an experience ratio

B.

Use Robust's average experience with all groups to calculate this particular group's premium.

C.

Use the group's past experience to estimate the group's expected experience for the next period.

D.

All of the above

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Question # 35

The following statements describe common types of physician/hospital integrated models:

The Iota Company, which is owned by a group of investors, is a for-profit legal entity that buys entire physician practices, not just the tangible assets of the practice

A.

Iota- physician hospital organization (PHO)Casa- physician practice management (PPM) company.

B.

Iota- physician hospital organization (PHO)Casa- medical foundation.

C.

Iota- physician practice management (PPM) Casa- physician hospital organization (PHO) company.

D.

Iota- medical foundation Casa- management services organization (MSO).

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Question # 36

One way that MCOs involve providers in risk sharing is by retaining a percentage of the providers' payment during a plan year. At the end of the plan year, the MCO may use the amount retained to offset or pay for any cost overruns for referral or hospital

A.

withholds

B.

usual, customary, and reasonable (UCR) fees

C.

risk pools

D.

per diems

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Question # 37

To achieve widespread use of electronic data interchange (EDI) in the healthcare industry, all entities within the industry need to agree on industry standards regarding the information format and software to be used. Several organizations are making cont

A.

Computer-based Patient Records Institute (CPRI)

B.

American National Standards Institute (ANSI)

C.

American Health Information Management Association (AHIMA)

D.

American Medical Association (AMA)

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Question # 38

Members who qualify to participate in a health plan's case management program are typically assigned a case manager. During the course of the member's treatment, the case manager is responsible for

A.

Coordinating and monitoring the member's care

B.

Approve

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Question # 39

One typical characteristic of preferred provider organization (PPO) benefit plans is that PPOs:

A.

Assume full financial risk for arranging medical services for their members.

B.

Require plan members to obtain a referral before getting medical services from specialists.

C.

Use a capitation arrangement, instead of a fee schedule, to reimburse physicians.

D.

Offer some coverage, although at a higher cost, for plan members who choose to use the services of non-network providers.

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Question # 40

The existing committees at the Majestic Health Plan, a health plan that is subject to the requirements of HIPAA, include the Executive Committee and the Corporate Compliance Committee. The Executive Committee serves as a long-term advisory body on issues

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Question # 41

Patrick Flaherty's employer has contracted to receive healthcare for its employees from the Abundant Healthcare System. Mr. Flaherty visits his primary care physician (PCP), who sends him to have some blood tests. The PCP then refers Mr. Flaherty to a special

A.

an integrated delivery system (IDS)

B.

a Management Services Organization (MSO)

C.

a Physician Practice Management (PPM) company

D.

a physician-hospital organization (PHO)

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Question # 42

The following programs are typically included in TRICARE medical management efforts:

A.

Utilization management

B.

Self-care

C.

Case management

D.

A and B only

E.

A and C only

F.

All of the listed options

G.

B and C only

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Question # 43

The Employee Retirement Income Security Act (ERISA) requires health plan members who receive healthcare benefits through employee benefit plans to file legal challenges involving coverage decisions or plan administration at the federal level. Under the te

A.

contract damages, which cover the cost of denied treatment

B.

compensatory damages, which compensate the injured party for his or her injuries

C.

punitive damages, which are designed to punish or make an example of the wrongdoer

D.

all of the above

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Question # 44

One HMO model can be described as an extension of a group model HMO because it contracts with multiple group practices, rather than with a single group practice. This HMO model is known as the

A.

staff model HMO

B.

IPA model HMO

C.

direct contract model HMO

D.

network model HMO

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Question # 45

The following sentence contains an incomplete statement with two missing words. Select the answer choice that contains the words that correctly fill in the missing blanks.

At its core, consumer choice involves empowering healthcare consumers to play a __

A.

greater/lesser

B.

greater/greater

C.

lesser/greater

D.

lesser/lesser

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Question # 46

The Courtland PPO maintains computerized records that include clinical, demographic, and administrative data about individual plan members. The data in these records is available to plan providers, ancillary service departments, pharmacies, and others inv

A.

a data warehouse

B.

a decision support system

C.

an outsourcing system

D.

an electronic medical record (EMR) system

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Question # 47

Marlee Whitcomb was covered as a dependent under the group health plan provided by her father's employer. That health plan complied with the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986. When Ms. Whitcomb married, she c

A.

can continue her group coverage for a period not to exceed 48 months

B.

can continue her group coverage for a period not to exceed 36 months

C.

cannot continue her group coverage, but has the right to convert the group coverage to an individual health plan

D.

can continue her group coverage indefinitely

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Question # 48

One of the most influential pieces of legislation in the advancement of health plans within the United States was the Health Maintenance Organization (HMO) Act of 1973. One of the provisions of the Act was that it

A.

exempted HMOs from all state licensure requirements.

B.

required all employers that offered healthcare coverage to their employees to offer only one type of federally qualified HMO.

C.

eliminated funding that supported the planning and start-up phases of new HMOs.

D.

established a process by which HMOs could obtain federal qualification

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Question # 49

The Conquest Corporation contracts with the Apex health plan to provide basic medical and surgical services to Conquest employees. Conquest entered into a separate contract with the Bright Dental Group to provide and manage a dental care program for employee

A.

a negotiated rebate agreement

B.

a carve-out arrangement

C.

an indemnity plan

D.

PBM

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Question # 50

Primary care case managers (PCCMs) provide managed healthcare services to eligible Medicaid recipients. With regard to PCCMs, it is correct to say that

A.

PCCMs contract directly with the federal government to provide case management services to Medicaid recipients

B.

all Medicaid recipients who live in rural areas must be given a choice of at least four PCCMs

C.

Medicaid PCCM programs are exempt from the Health Care Financing Administration's (HCFA's) Quality Improvement System for Managed Care (QISMC) standards

D.

PCCMs typically receive a case management fee, rather than reimbursement for medical services on a FFS basis, for the services they provide to Medicaid recipients

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Question # 51

The Blaine Healthcare Corporation seeks to manage its quality by first identifying the best practices and best outcomes for a given procedure. Blaine can then determine areas in which it can emulate the best practices in order to equal or surpass the best

A.

provider profiling

B.

benchmarking

C.

peer review

D.

quality assessment

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Question # 52

One ethical principle in managed care is the principle of justice/equity, which specifically holds that MCOs and their providers have a duty to

A.

treat each member in a manner that respects his or her own goals and values

B.

allocate resources in a way that fairly distributes benefits and burdens among the members

C.

present information honestly to their members and to honor commitments to their members

D.

make sure they do not harm their members

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Question # 53

Medicare is the federal government program established under Title XVIII of the Social Security Act of 1965 to provide hospital, medical and other covered benefits to elderly and disabled persons. Medicare is available for:

A.

Persons age 63 or older.

B.

Persons with qualifying disabilities (over the age of 63)

C.

Persons with end-stage renal disease (ESRD)

D.

Low income individuals

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Question # 54

Lansdale Healthcare, a health plan, offers comprehensive healthcare coverage to its members through a network of physicians, hospitals, and other service providers. Plan members who use in-network services pay a copayment for these services. The copayment

A.

specified dollar amount charge that a plan member must pay out-of-pocket for a specified medical service at the time the service is rendered

B.

percentage of the fees for medical services that a plan member must pay after Magellan has paid its share of the costs of those services

C.

flat amount that a plan member must pay each year before Magellan will make any benefit payments on behalf of the plan member

D.

specified payment for services that was negotiated between the provider and Magellan

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Question # 55

The Ark Health Plan, is currently recruiting providers in preparation for its expansion into a new service area. A recruiter for Ark has been meeting with Dr. Nan Shea, a pediatrician who practices in Ark's new service area, in order to convince her to be

A.

Credentialing

B.

Accreditation

C.

A sentinel event

D.

A screening program

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