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AHM-520 Exam Dumps : Health Plan Finance and Risk Management

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Health Plan Finance and Risk Management Questions and Answers

Question 1

Variance analysis is the study of the difference between expected results and actual results. Variances can be positive or negative. A positive variance is typically considered:

Options:

A.

favorable for both expenses and revenues

B.

favorable for expenses, but unfavorable for revenues

C.

favorable for revenues, but unfavorable for expenses

D.

unfavorable for both expenses and revenues

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Question 2

One difference between the internal and external analysis of a health plan's financial information is that

Options:

A.

Internal analysis of the health plan can be more detailed and more specific than can external analysis

B.

Internal analysts are more likely than external analysts to want comparative financial data about the health plan

C.

Only internal analysts use trend analysis to analyze the health plan's financial statements

D.

Only internal analysts typically conduct the financial analysis of the health plan themselves

Question 3

The following statements indicate the pricing policies of two health plans that operate in a particular market:

  • The Accent Health Plan consistently underprices its product
  • The Bolton Health Plan uses extremely strict underwriting practices for the small groups to which it markets its plan

From the following answer choices, select the response that correctly indicates the most likely market effects of the pricing policies used by Accent and Bolton.

Options:

A.

Accent = unprofitable business

Bolton = high acquisition rate

B.

Accent = unprofitable business

Bolton = low acquisition rate

C.

Accent = high profits

Bolton = high acquisition rate

D.

Accent = high profits

Bolton = low acquisition rate