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AHM-250 Sample Questions Answers

Questions 4

The administrative simplification standards described under Title II of HIPAA include privacy standards to control the use and disclosure of health information. In general, these privacy standards prohibit

Options:

A.

all health plans, healthcare providers, and healthcare clearinghouses from using any protected health information for purposes of treatment, payment, or healthcare operations without an individual's written consent

B.

patients from requesting that restrictions be placed on the accessibility and use of protected health information

C.

transmission of individually identifiable health information for purposes other than treatment, payment, or healthcare operations without the individual's written authorization

D.

patients from accessing their medical records and requesting the amendment of incorrect or incomplete information

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Questions 5

The Fairway Health Group contracted with the Empire Corporation to provide behavioral healthcare services to Empire employees. As a condition of providing behavioral healthcare services, Fairway required Empire to contract with Fairway for basic medical s

Options:

A.

horizontal group boycott

B.

price-fixing agreement

C.

horizontal division of markets

D.

tying arrangement

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Questions 6

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

Options:

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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Questions 7

One characteristic of the accreditation process for MCOs is that

Options:

A.

an accrediting agency typically conducts an on-site review of an MCO's operations, but it does not review an MCO's medical records or assess its member service systems

B.

each accrediting organization has its own standards of accreditation

C.

the accrediting process is mandatory for all MCOs

D.

government agencies conduct all accreditation activities for MCOs

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Questions 8

Janet Riva is covered by a indemnity health insurance plan that specifies a $250 deductible and includes a 20% coinsurance provision. When Ms. Riva was hospitalized, she incurred $2,500 in medical expenses that were covered by her health plan. She incurred

Options:

A.

$1,750

B.

$1,800

C.

$2,000

D.

$2,250

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Questions 9

Parul Gupta has been covered by a group health plan for eighteen months. For the past four months, she has been undergoing treatment for diabetes. Last week, Ms. Gupta began a new job and immediately enrolled in her new company's group health plan, which

Options:

A.

can exclude coverage for treatment of Ms. Gupta's diabetes for one year, because she did not have at least two years of creditable coverage under her previous health plan

B.

cannot exclude Ms. Gupta's diabetes as a pre-existing condition, because the one-year pre-existing condition provision is offset by at least one year of continuous coverage under her previous health plan

C.

can exclude coverage for treatment of Ms. Gupta's diabetes for one year, because HIPAA does not impact a group health plan's pre-existing condition provision

D.

can exclude coverage for treatment of Ms. Gupta's diabetes for four months, because that is the length of time she received treatment for this medical condition prior to her enrollment in the new health plan

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Questions 10

The Clover Group is a for-profit MCO that operates in the United States. The Valentine Group owns all of Clover's stock. The Valentine Group's sole business is the ownership of controlling interests in the shares of other companies. This information indic

Options:

A.

holding company of the Valentine Group

B.

sister corporation of the Valentine Group

C.

parent company of the Valentine Group

D.

subsidiary of the Valentine Group

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Questions 11

The following organizations are the primary sources of accreditation of healthcare organizations:

Options:

A.

National Committee for Quality Assurance (NCQA)

B.

American Accreditation HealthCare Commission/URAC Of these organizations, performance data is included i

C.

A only

D.

B only

E.

A and B

F.

none of the above

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Questions 12

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

Options:

A.

a data warehouse

B.

a decision support system

C.

an outsourcing system

D.

an electronic medical record (EMR) system

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Questions 13

John Kerry's employer has contracted to receive healthcare for its employees from the Democratic Healthcare System. Mr. Kerry visits his PCP, who sends him to have some blood tests. The PCP then refers Mr. Kerry to a specialist who hospitalizes him for on

Options:

A.

a physician practice organization

B.

a physician-hospital organization

C.

a management services organization

D.

an integrated delivery system

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Questions 14

Medicaid is a jointly funded federal and state program that provides hospital and medical expense coverage to low-income individuals and certain aged and disabled individuals. One characteristic of Medicaid is that

Options:

A.

providers who care for Medicaid recipients must accept Medicaid payment as payment in full for services rendered

B.

Medicaid requires recipients to pay deductibles, copayments, and coinsurance amounts for all services

C.

Medicaid is always the primary payer of benefits

D.

benefits offered by Medicaid programs are federally mandated and do not vary by state

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Questions 15

The NAIC adopted the HMO Model Act in order to provide a system of ongoing regulatory monitoring of HMOs. All of the following statements are correct about the HMO Model Act EXCEPT that it:

Options:

A.

Regulates HMO operations in two critical areas: financial responsibility and healthcare delivery.

B.

Requires each HMO to send state regulators an annual report describing the HMO's finances and operations.

C.

Focuses on three key aspects of healthcare delivery: network adequacy, quality assurance, and grievance procedures.

D.

Requires state insurance departments to conduct annual examinations of an HMO's operations, quality assurance programs, and provider networks.

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Questions 16

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

Options:

A.

Deductible

B.

Copayment

C.

Capitation

D.

Co-insurance

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Questions 17

Medigap policies were standardized into ten standard benefit pl ranging from A-J by the ____

Options:

A.

Omnibus Budget Reconciliation Act (OBRA) of 1990

B.

Tax Equity & Fiscal Responsibility Act (TEFRA) of 1982

C.

Medicare Modernization Act (MMA) of 2003

D.

Balanced Budget Act (BBA) of 1997

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Questions 18

The Koster Company plans to purchase a health plan for its employees from Intuitive HMO. Intuitive will administer the plan and will bear the responsibility of guaranteeing claim payments by paying all incurred covered benefits. Koster will pay for the he

Options:

A.

fully funded plan

B.

stop-loss plan

C.

self-pay plan

D.

self-funded plan

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Questions 19

Disease management is typically set up as a voluntary outreach and support program for plan members with certain _________ diseases

Options:

A.

Acute

B.

Chronic

C.

None of the above

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Questions 20

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.

Options:

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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Questions 21

The Oriole MCO uses a typical diagnosis-related groups (DRGs) payment method to reimburse the Isle Hospital for its treatment of Oriole members. Under the DRG payment method, whenever an Oriole member is hospitalized at Isle, Oriole pays Isle

Options:

A.

an amount based on the weighted value of each medical procedure or service that Isle provides, and the weighted value is determined by the appropriate current procedural terminology (CPT) code for the procedure or service

B.

a fixed rate based on average expected use of hospital resources in a given geographical area for that DRG

C.

a retrospective reimbursement based on the actual costs of the Oriole member's hospitalization

D.

a specific negotiated amount for each day the Oriole member is hospitalized

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Questions 22

Which of the following is NOT a reason for conducting utilization reviews?

Options:

A.

Improve the quality and cost effectiveness of patient care

B.

Reduce unnecessary practice variations

C.

Make appropriate authorization decisions

D.

Accommodate special requirements of inpatient care

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Questions 23

The following statements are about federal laws that affect healthcare organizations. Select the answer choice containing the correct response.

Options:

A.

The Women's Health and Cancer Rights Act (WHCRA) of 1998 requires health plans to offer mastectomy benefits.

B.

The Health Care Quality Improvement Act (HCQIA) requires hospitals, group practices, and HMOs to comply with all standard antitrust legislation, even if these entities adhere to due process standards that are outlined in HCQIA.

C.

The Newborns' and Mothers' Health Protection Act (NMHPA) of 1996 mandates that coverage for hospital stays for childbirth must generally be a minimum of 24 hours for normal deliveries and 48 hours for cesarean births.

D.

Although the Mental Health Parity Act (MHPA) does not require health plans to offer mental health coverage, it imposes requirements on those plans that do offer mental health benefits.

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Questions 24

Select the correct statement regarding TRICARE Extra plan options to military personnel’s.

Options:

A.

Out of pocket expenses are generally high in tricare extra than TRICARE standard

B.

Enrollment is not necessary to participate in TRICARE Extra

C.

TRICARE Extra provides coordinated care managed by primary care case manager

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Questions 25

The following statements pertain to the federal requirements for minimum deductible & maximum out of pocket expeses for a high deductible health plan in the year 2006. Select the correct answer from the options given below.

Options:

A.

Minimum deductible - $ 1,050 for self only coverage ; maximum out of pocket expenses- $ 2,100 for self only coverage

B.

Minimum deductible - $ 1,050 for self only coverage ; maximum out of pocket expenses- $ 10.500 for family coverage

C.

Minimum deductible - $ 2,100 for self only coverage ; maximum out of pocket expenses- $ 10,500 for self only coverage

D.

Minimum deductible - $ 2,100 for self only coverage ; maximum out of pocket expenses- $ 5,250 for self only coverage

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Questions 26

The process that Mr. Sybex used to identify and classify the risk represented by the Koster Group so that Intuitive can charge premiums that are adequate to cover its expected costs is known as

Options:

A.

coinsurance

B.

plan funding

C.

underwriting

D.

pooling

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Questions 27

Types of alternative care centers include urgent care centers, observation care units, and stepdown units. One difference between the costs associated with alternative care centers is that, compared to the cost of:

Options:

A.

Facilities, equipment, and staffing in hospital emergency departments (EDs), the cost of facilities, equipment, and staffing in observation care units is generally lower

B.

Care delivered in urgent care centers, the cost of care delivered in hospital emergency departments (EDs) is generally lower.

C.

Care in step-down units, the cost of acute inpatient care is generally lower.

D.

Primary care in a physician's office, the cost of care delivered in urgent care centers is generally lower.

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Questions 28

Wellborne HMO provides health-related information to its plan members through an Internet Web site. Laura Knight, a Wellborne plan member, visited Wellborne's Web site to gather uptodate information about the risks and benefits of various treatment option

Options:

A.

shared decision making

B.

self-care

C.

preventive care

D.

triage

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Questions 29

The nature of the claims function within health plans varies by type of plan and by the compensation arrangement that the plan has made with its providers. For example, it is generally correct to say that, in a

Options:

A.

Preferred provider organization (PPO), the

B.

Both A and B

C.

A only

D.

B only

E.

Neither A nor B

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Questions 30

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

Options:

A.

discounted fee-for-service system

B.

global capitation arrangement

C.

withhold arrangement

D.

relative value scale (RVS)

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Questions 31

The following statements apply to flexible spending arrangements. Select the answer choice that contains the correct statement.

Options:

A.

FSAs were designed to help increase health insurance coverage among self-employed individuals.

B.

Only employers may contribute funds to FSAs.

C.

The popularity of FSAs has been limited because funds may not be rolled over from year to year.

D.

A popular feature of FSAs is their portability, which allows employees to take the funds with them when they change jobs.

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Questions 32

IROs stands for

Options:

A.

Internal Review Organizations

B.

International review Organizations

C.

Independent review organizations

D.

None of the above

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Questions 33

One way in which a health plan can support an ethical environment is by

Options:

A.

requiring organizations with which it contracts to adopt the plan's formal ethical policy

B.

developing and maintaining a culture where ethical considerations are integrated into decision making at the top organizational level only

C.

establishing a formal method of managing ethical conflicts, such as using an ethics task force or bioethics consultant

D.

maintaining control of policy development by removing providers and members from the process of developing and implementing policies and procedures that provide guidance to providers and members confronted with ethical issues

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Questions 34

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

Options:

A.

provider profiling

B.

benchmarking

C.

peer review

D.

quality assessment

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Questions 35

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

Options:

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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Questions 36

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

Options:

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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Questions 37

One of the distinguishing characteristics of healthcare marketing is that many of the markets for health plans are national, not local markets.

Options:

A.

True

B.

False

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Questions 38

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

Options:

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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Questions 39

As part of its utilization management (UM) system, the Poplar MCO uses a process known as case management. The following statements describe individuals who are Poplar plan members:

  • Brad Van Note, age 28, is taking many different, costly medications for

Options:

A.

Mr. Van Note, Mr. Albrecht, and Ms. Cromartie

B.

Mr. Van Note and Ms. Cromartie only

C.

Mr. Van Note and Mr. Albrecht only

D.

Mr. Albrecht and Ms. Cromartie only

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Questions 40

As part of its utilization management (UM) system, the Creole Health Plan uses a process known as case management. The following individuals are members of the Creole Health Plan:

  • Jill Novacek, who has a chronic respiratory condition.
  • Abraham Rashad.

Options:

A.

Ms. Novacek, Mr. Rashad, and Mr. Devereaux

B.

Ms. Novacek and Mr. Rashad only

C.

Ms. Novacek and Mr. Devereaux only

D.

None of these members

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Questions 41

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

Options:

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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Questions 42

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

Options:

A.

Smoking cessation programs.

B.

Periodic health examinations.

C.

Health club memberships.

D.

Immunizations for children and adults.

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Questions 43

As part of its quality management program, the Lyric Health Plan regularly compares its practices and services with those of its most successful competitor. When Lyric concludes that its competitor's practices or services are better than its own, Lyric im

Options:

A.

Benchmarking.

B.

Standard of care.

C.

An adverse event.

D.

Case-mix adjustment.

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Questions 44

In most cases, medical errors are caused by breakdowns in the healthcare system rather than by provider mistakes.

Options:

A.

True

B.

False

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Questions 45

A particular health plan offers a higher level of benefits for services provided in-network than for out-of-network services. This health plan requires preauthorization for certain medical services.

With regard to the steps that the health plan's claims e

Options:

A.

should assume that all services requiring preauthorization have been preauthorized

B.

should investigate any conflicts between diagnostic codes and treatment codes before approving the claim to ensure that the appropriate payment is made for the claim

C.

need not verify that the provider is part of the health plan's network before approving the claim at the in-network level of benefits

D.

need not determine whether the member is covered by another health plan that allows for coordination of benefits

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Questions 46

An HMO that combines characteristics of two or more HMO models is sometimes referred to as a

Options:

A.

Network model HMO

B.

Group model HMO

C.

Staff model HMO

D.

Mixed model HMO

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Questions 47

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

Options:

A.

Employer-employee group

B.

Multiple-employer group

C.

Affinity group

D.

Debtor-creditor group

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Questions 48

Federal legislation has placed the primary responsibility for regulating health insurance companies and HMOs that service private sector (commercial) plan members at the state level.

This federal legislation is the

Options:

A.

Clayton Act

B.

Federal Trade Commission Act

C.

McCarran-Ferguson Act

D.

Sherman Act

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Questions 49

Col. Martin Avery, on active duty in the U.S. Army, is eligible to receive healthcare benefits under one of the three TRICARE health plan options. If Col Avery elects to participate in TRICARE Prime, he will be

Options:

A.

able to obtain full benefits for services obtained from network and non-network providers

B.

subject to copayment, deductible, and coinsurance requirements for any medical care he receives

C.

required to formally enroll for coverage and pay an enrollment fee

D.

assigned to a primary care manager who is responsible for coordinating all his care

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Questions 50

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

Options:

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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Questions 51

In claims administration terminology, a claims investigation is correctly defined as the process of

Options:

A.

reporting management information about services provided each time a patient visits a provider for purposes of analyzing utilization and provider practice patterns

B.

obtaining all the information necessary to determine the appropriate amount to pay on a given claim

C.

routinely reviewing and processing a claim for either payment or denial

D.

assigning to each diagnosis or treatment reported on a claim special codes that briefly and specifically describe each diagnosis and treatment

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Questions 52

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

Options:

A.

chief executive officer (CEO)

B.

network management director

C.

board of directors

D.

director of operations

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Questions 53

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

Options:

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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Questions 54

Dr. Milton Ware, a physician in the Riverside MCO's network of providers, is reimbursed under a fee schedule arrangement for medical services he provides to Riverside members. Dr. Ware's provider contract with Riverside contains a typical no-balance billi

Options:

A.

prevent Dr. Ware from requiring a Riverside member to pay any coinsurance, copayment, or deductibles that the member would normally pay under Riverside's plan

B.

require Dr. Ware to accept the amount that Riverside pays for medical services as payment in full and not to bill plan members for additional amounts

C.

prevent Dr. Ware from seeking compensation from patients if Riverside fails to compensate him because of the MCO's insolvency

D.

prevent Dr. Ware from billing a Riverside member for medical services that are not included in Riverside's plan

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Questions 55

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

Options:

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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Exam Code: AHM-250
Exam Name: Healthcare Management: An Introduction
Last Update: May 1, 2024
Questions: 367
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