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During the risk assessment process for a traditional indemnity group insurance health plan, group underwriters consider such characteristics as a group’s geographic location, the size and gender mix of the group, and the level of participation in the grou

A.

Healthcare costs are typically higher in rural areas than in large urban areas.

B.

The morbidity rate for males is higher than the morbidity rate for females.

C.

The larger the group, the more likely it is that the group will experience losses similar to the average rate of loss that was predicted.

D.

All of the above

From the answer choices below, select the response that correctly identifies the rating method that Mr. Sybex used and the premium rate PMPM that Mr. Sybex calculated for the Koster group.

A.

Rating Method book rating Premium Rate PMPM $132

B.

Rating Method book rating Premium Rate PMPM $138

C.

Rating Method blended rating Premium Rate PMPM $132

D.

Rating Method blended rating Premium Rate PMPM $138

In large health plans, management functions such as provider recruiting, credentialing, contracting, provider service, and performance management for providers are typically the responsibility of the

A.

chief executive officer (CEO)

B.

network management director

C.

board of directors

D.

director of operations

Health savings accounts were created by which of the following laws:

A.

COBRA

B.

HIPAA

C.

Medicare Modernization Act

D.

None of the Above

In order to cover some of the gap between FFS Medicare coverage and the actual cost of services, beneficiaries often rely on Medicare supplements. Which of the following statements about Medicare supplements is correct?

A.

The initial ten (A-J) Medigap policies offer a basic benefit package that includes coverage for Medicare Part A and Medicare Part B coinsurance.

B.

Each insurance company selling Medigap must sell all the different Medigap policies.

C.

Medicare SELECT is a Medicare supplement that uses a preferred provider organization (PPO) to supplement Medicare Part A coverage.

D.

Medigap benefits vary by plan type (A through L), and are not uniform nationally.

In certain situations, a health plan can use the results of utilization review to intervene, if necessary, to alter the course of a plan member's medical care. Such intervention can be based on the results of

A.

Prospective review

B.

Concurrent review

C.

D.

A, B, and C

E.

A and B only

F.

A and C only

G.

B only

A medical foundation is a not-for-profit entity that purchases and manages physician practices. In order to retain its not-for-profit status, a medical foundation must

A.

Provide significant benefit to the community

B.

Employ, rather than contract with, participating physicians

C.

Achieve economies of scale through facility consolidation and practice management

D.

Refrain from the corporate practice of medicine

Greentree Medical, a health plan, is currently recruiting PCPs in preparation for its expansion into a new service area. Abigail Davis, a recruiter for Greentree, has been meeting with Melissa Cortelyou, M.D., in an effort to recruit her as a PCP in Green

A.

Greentree is prevented by law from offering a contract to Dr. Cortelyou until the credentialing process is complete

B.

any contract signed by Dr. Cortelyou should include a clause requiring the successful completion of the credentialing process within a defined time frame in order for the contract to be effective

C.

Greentree must offer a standard contract to Dr. Cortelyou, without regard to the outcome of the credentialing process

D.

Greentree will abandon the credentialing process now that Dr. Cortelyou has agreed to participate in Greentree's network

Health plans use the following to determine the number of providers to add to a network:

A.

Staffing ratios

B.

Drive time

C.

Geographic availability

D.

All of the above

Appropriateness of treatment provided is determined by developing criteria that if unmet will prompt further investigation of a claim which are also called:

A.

Codes

B.

Lists

C.

Edits

D.

Checks