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AHM-510 Exam Dumps - Governance and Regulation

Question # 4

Indigo Health Plan advertised a specific individual health insurance policy through a direct mail advertisement that provided detailed information about the product. In order to comply with the NAIC Model Rules Governing Advertisements of Accident and Sickness Insurance, Indigo must disclose whether the advertised policy contains any exceptions, reductions, or limitations. Thus, Indigo disclosed in the advertisement that one policy provision limits coverage for dental exams to $50 per exam and to one exam per calendar year. This information indicates that, with respect to the definitions in the NAIC Model Rules, Indigo's advertisement is an example of an

A.

Invitation to contract, and it discloses a policy provision known as an exception

B.

Invitation to contract, and it discloses a policy provision known as a reduction

C.

Invitation to inquire, and it discloses a policy provision known as an exception

D.

Invitation to inquire, and it discloses a policy provision known as a reduction

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Question # 5

After conducting a business portfolio analysis, the Acorn Health Plan decided to pursue a harvest strategy with one of its strategic business units (SBUs)-Guest Behavioral Healthcare. By following a harvest strategy with Guest, Acorn most likely is seeking to

A.

Maximize Guest's short-term earnings and cash flow

B.

Increase Guest's market share

C.

Maintain Guest's market position

D.

Sacrifice immediate earnings in order to fund Guest's growth

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Question # 6

In developing its corporate strategies, the Haven Health Plan decided to implement a growth strategy that is focused on increasing the percentage of preventive health office visits from its current plan members. To accomplish this objective, Haven will send a direct mail kit to existing plan members to remind them of the variety of preventive health services that Haven currently offers, including physical exams, cholesterol tests, and mammograms. This information illustrates Haven's use of

A.

An intensive growth strategy known as market penetration

B.

An integrated growth strategy known as product development

C.

An integrated growth strategy known as market development

D.

A diversified growth strategy known as market penetration

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Question # 7

In 1994, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) revised their 1993 healthcare-specific antitrust guidelines to include analytical principles relating to multiprovider networks. Under the new guidelines, the regulatory agencies will use the rule of reason to analyze joint pricing activities by competitors in physician or multiprovider networks only if

A.

Provider integration under the network is likely to produce significant efficiencies that benefit consumers

B.

The providers in a network share substantial financial risk

C.

The combining of providers into a joint venture enables the providers to offer a new product

D.

All of the above

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Question # 8

The government uses various tools within the realm of two broad categories of public policy-allocative policies and regulatory policies. In the context of public policy, laws that fall into the category of allocative policy include

A.

The Balanced Budget Act (BBA) of 1997

B.

The Health Insurance Portability and Accountability Act (HIPAA) of 1996

C.

Laws affecting health plan quality oversight

D.

Laws specifying procedures for health plan handling of consumer appeals and grievances

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Question # 9

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

One type of acquisition is called a stock purchase. In a typical stock purchase, a company acquires (51% / 100%) of the voting shares of another company's stock, thereby making the acquired company a subsidiary. The (acquired / acquiring) company holds all of the assets and liabilities of the acquired company.

A.

51% / acquired

B.

51% / acquiring

C.

100% / acquired

D.

100% / acquiring

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Question # 10

The Balanced Budget Act (BBA) of 1997 created the Medicare+Choice plan. One provision of the BBA under Medicare+Choice is that the BBA

A.

Requires health plans to qualify as either a competitive medical plan (CMP) or a federally qualified HMO in order to participate in the Medicare program

B.

Eliminates funding for demonstration projects such as the Medicare Enrollment Demonstration Project

C.

Narrows the geographic variations in payments to Medicare health plans by lowering the growth rate of payments in high-payment counties and raising the rates in low-payment counties

D.

Increases Graduate Medical Education (GME) payments to hospitals for the training and cost of educating and training residents

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Question # 11

TRICARE, a military healthcare program, offers eligible beneficiaries three options for healthcare services: TRICARE Prime, TRICARE Extra, and TRICARE Standard. With respect to plan features, both an annual deductible and claims filing requirements must be met, regardless of whether care is delivered by network providers, under

A.

TRICARE Prime and TRICARE Extra only

B.

TRICARE Extra and TRICARE Standard only

C.

TRICARE Standard only

D.

None of these healthcare options

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