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The following statements apply to health reimbursement arrangements. Select the answer choice that contains the correct statement.

A.

Only employers are permitted to establish and fund HRAs.

B.

The popularity of HRAs waned following a 2002 ruling by U.S. Treasury Department regarding their treatment in the tax code.

C.

HRAs must be offered in conjunction with a high-deductible health plan.

D.

The guaranteed portability feature of HRAs has contributed to their popularity.

When determining physicians' fee reimbursements, the Blossom Managed Healthcare Group assigns a weighted value to each medical procedure or service and multiplies the weighted value by a money multiplier, as shown below:

Weighted value for service × Money

A.

discounted fee-for-service system

B.

global capitation arrangement

C.

withhold arrangement

D.

relative value scale (RVS)

Which of the following is an example of physician only model of operational integration?

A.

Consolidated medical group

B.

Integrated Delivery System

C.

Medical Foundation

D.

Both B & C

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 related to overall organizational policy. The Corporate Compliance Committee are convened to address specific management concerns. The following statement(s) can correctly be made about these committees:

A.

Majestic's Executive Committee is an example of a Specific committee.

B.

The Corporate Compliance Committee is an Example of an Adhoc company.

C.

A & B

Which of the following features differentiates a 'Clinic without walls1 from a consolidated medical group?

A.

Unlike a consolidated medical group, physicians in a 'Clinic without walls' maintain their practices independently in multiple locations.

B.

Unlike a consolidated medical group, a 'Clinic without walls' performs or arranges for business operations for the member physicians.

C.

Both A & B

The following statements are about the underwriting function within a health plan. Select the answer choice containing the correct statement.

A.

The underwriting function in a health plan is primarily concerned with ensuring that the group being underwritten does not include any individuals who are likely to have higher than average utilization of medical services.

B.

Compared to a health plan with relaxed underwriting requirements, a similar health plan with very strict underwriting requirements can expect to experience increased healthcare costs and to have significantly higher plan enrollment.

C.

Typically, a health plan guarantees the premium rate for a group health contract for a period of no more than six months.

D.

In order to determine the actual premium to charge a group, a group underwriter typically considers such factors as level of participation, benefits, and the age and gender distribution of group members.

High deductible health plans (HDHP) are characterized by all of the following features except

A.

A HDHPs have a higher deductible than other traditional insurance products such as HMOs & PPOs.

B.

HDHPs generally cost more than traditional heathcare coverage.

C.

Some HDHPs cover preventive care on a first-dollar coverage basis.

D.

All of the above

The contract between an employer and an insurer or other TPA is called

A.

Claims

B.

Bond

C.

ASO

D.

None of the above

Bill the member for the balance of the fee above the maximum allowable amount under the fee schedule reimbursement method

A.

UCR fee

B.

Capitation fee

C.

Balance bill

D.

Discounted fee-for-service

The health plan determines what it considers to be the acceptable fee for a service or procedure and the physician agrees to accept that amount as payment in full for the procedure

A.

Usual, Customary, and Reasonable fee

B.

Discounted FFS

C.

Fee Maximum

D.

Relative Value Scale