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

When analyzing budget variances, a health plan's management should pay attention to unfavorable variances only.

A health plan can reduce the problem of unattainable goals by involving responsibility managers in the preparation of their centers' budgets.

One reason that a health plan would use cost-based transfer prices to evaluate the performance of its profit centers and investment centers is because, under this method of setting transfer prices, the selling center has maximum incentive to operate effectively and control costs.

In responsibility accounting, all employees who have any influence over a health plan's department are held equally accountable for the operations and financial outcomes of that department.

Interest charge

Retention charge

Risk charge

Surplus

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