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

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Measure its performance and practices against those of other companies to help identify those practices that will lead to superior performance in a variety of financial and non-financial areas

Calculate the percentage changes in its financial statement items over several consecutive accounting periods

Determine both the direction and velocity of trends in its financial statements

Display only percentage relationships in its financial statements

The net effect of using provider reimbursement contracts to transfer risk is that the health plan’s net worth requirement increases.

Once the health plan has transferred utilization risk to its providers, it is relieved of the legal obligation to provide medical services to plan members in the event of the provider’s insolvency.

The greater the amount of risk the health plan transfers to providers, the larger the credit-risk factor becomes in the health plan’s RBC formula.

By decreasing its utilization risk, the health plan increases its underwriting risk.