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

Cash receipt, but not cash disbursement, is an important component of cash-basis accounting

Most companies use a pure cash-basis accounting system

Cash-basis accounting records revenue according to the realization principle and expenses according to the matching principle

Health insurance companies and health plans that fall under the jurisdiction of state insurance commissioners must report some items on a cash basis for statutory reporting purposes

Is the most common type of capitation

Is less attractive to providers when the arrangement sets provisions to limit risk

Sets provider reimbursement at a specific dollar amount per plan member

Transfers some of the risk associated with underwriting and rating from a health plan to a provider

Coral's equity holders have an ownership interest in the health plan

The interest that Coral pays on its debt most likely is not tax deductible to Coral

Coral's debt holders have no legal claim to Coral's assets

Equity is a more risky source of capital, from Coral's perspective, than is debt