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AHM-520 dumps questions answers

AHIP AHM-520 Dumps

Exam Code:
AHM-520
Exam Name:
Health Plan Finance and Risk Management
Last Update: May 15, 2024
215 Questions
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Health Plan Finance and Risk Management Questions and Answers

Questions 1

The Puma health plan uses return on investment (ROI) and residual income (RI) to measure the performance of its investment centers. Two of these investment centers are identified as X and Y. Investment Center X earns $10,000,000 in operating income on controllable investments of $50,000,000, and it has total revenues of $60,000,000. Investment Center Y earns $2,000,000 in operating income on controllable investments of $8,000,000, and it has total revenues of $10,000,000. Both centers have a minimum required rate of return of 15%.

One likely way in which Investment Center X or Y could effectively increase its ROI is by

Options:

A.

Focusing only on increasing its total revenues

B.

Increasing its controllable investments

C.

Increasing total revenues, accompanied by a proportionate increase in operating income

D.

Increasing expenses in order to increase operating income

Questions 2

The Savanna health plan used a risk analysis technique which defines the key assumptions of Savanna's strategic financial plan in terms of mathematical formulas that can be correlated to each other or analyzed independently. This technique allowed Savanna to simulate probable future events on a computer and produce a distribution of possible outcomes. This risk analysis technique, which can be used to predict Savanna's distribution of expected claims, is known as

Options:

A.

A hurdle rate simulation

B.

Optimistic, most likely, pessimistic scenario modeling

C.

A Monte Carlo simulation

D.

Debt covenant modeling

Questions 3

The Raven Health Plan is domiciled in a state that requires the health plan to offer small employers and their employees a comprehensive healthcare benefit plan that approximates the healthcare benefits available to large employer-employee groups. This type of uniform benefit plan is known as:

Options:

A.

A basic plan

B.

A low-option plan

C.

A standard plan

D.

An essential plan