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AHM-530 Network Management Questions and Answers

Questions 4

A provider contract describes the responsibilities of each party to the contract. These responsibilities can be divided into provider responsibilities, health plan responsibilities, and mutual obligations. Mutual obligations typically include

Options:

A.

provisions for marketing the plan’s product

B.

payment arrangements between the plan and the provider

C.

verification of the plan’s eligibility to do business

D.

management of the contents of members’ medical records

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Questions 5

Participating providers in a health plan’s network must undergo recredentialing on a regular basis. During recredentialing, a health plan typically reviews

Options:

A.

a provider’s current, updated application information, as well as provider’s peer reviews and performance reports on the provider

B.

a provider’s current, updated application information, as well as the provider’s education and prior work history

C.

a provider’s education and prior work history only

D.

peer reviews and performance reports on a provider and the provider’s prior work history only

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Questions 6

In open panel contracting, there are several types of delivery systems. One such delivery system is the faculty practice plan (FPP). One likely result that a health plan will experience by contracting with an FPP is that the health plan will

Options:

A.

be able to select most of the physicians in the FPP

B.

achieve the highest level of cost effectiveness possible

C.

experience limited control over utilization

D.

achieve the most effective case management possible

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Questions 7

Promise, Inc., a corporation that specializes in cancer services, employs its physicians and support staff and provides facilities and ancillary services for cancer patients. Promise has contracted with the Cordelia Health Plan to provide all specialty services for Cordelia plan members who are undergoing cancer treatment. In return, Promise receives a capitated amount from Cordelia. Promise is an example of a type of specialty services organization known as a

Options:

A.

Specialty IPA

B.

Disease management company

C.

Single specialty management specialist

D.

Specialty network management company

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Questions 8

The Gladspell HMO has contracted with the Ellysium Hospital to provide subacute care to its plan members. Gladspell pays Ellysium by using a per diem reimbursement method.

The per diem reimbursement method will require Gladspell to pay Ellysium a

Options:

A.

Fixed rate for each day a plan member is treated in Ellysium’s subacute care facility

B.

Discounted charge for all subacute care services given by Ellysium

C.

Rate that varies depending on patient category

D.

Fixed rate per enrollee per month

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Questions 9

The method that the Autumn Health Plan uses for reimbursing dermatologists in its provider network involves paying them out of a fixed pool of funds that is actuarially determined for this specialty. The amount of funds that Autumn allocates to dermatologists is based on utilization and costs of services for that discipline.

Under this reimbursement method, a dermatologist who is under contract to Autumn accumulates one point for each new referral made to the specialist by Autumn’s PCPs. If the referral is classified as complicated, then the dermatologist receives 1.5 points. The value of Autumn’s dermatology services fund for the first quarter was $15,000. During the quarter, Autumn’s PCPs made 90 referrals, and 20 of these referrals were classified as complicated.

In determining the first quarter payment to dermatologists, Autumn would accurately calculate the value of each referral point to be

Options:

A.

$111.11

B.

$125.00

C.

$150.00

D.

$166.67

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Questions 10

The Walton Health Plan uses the fee-for-service pharmaceutical reimbursement approach known as the maximum allowable cost (MAC) method. If Walton’s MAC list specifies a cost of 8 cents per tablet for a particular drug but the participating pharmacy pays 10 cents per tablet for the drug, then Walton will be obligated to reimburse the pharmacy for

Options:

A.

8 cents per tablet, but the pharmacy can bill the subscriber for the remaining 2 cents per tablet

B.

8 cents per tablet, and the pharmacy cannot bill the subscriber for the remaining 2 cents per tablet

C.

10 cents per tablet, but the pharmacy must refund the extra 2 cents per tablet to the subscriber

D.

10 cents per tablet, and the pharmacy is not required to refund the extra 2 cents per tablet to the subscriber

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Questions 11

Four types of APCs are ancillary APCs, medical APCs, significant procedure APCs, and surgical APCs. An example of a type of APC known as

Options:

A.

An ancillary APC is a biopsy

B.

Amedical APC is radiation therapy

C.

Asignificant procedure APC is a computerized tomography (CT) scan

D.

Asurgical APC is an emergency department visit for cardiovascular disease

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Questions 12

In most states, workers’ compensation is first-dollar and last-dollar coverage, which means that workers’ compensation programs

Options:

A.

Can place limits on the benefits they will pay for a given claim

B.

Can deny coverage for work-related illness or injury if the employer is not at fault

C.

Must pay 100% of work-related medical and disability expenses

D.

Can hold employers liable for additional amounts that result from court decisions

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Questions 13

Stop-loss insurance is designed to protect physicians who face substantial financial risk as a result of physician incentive plans. Medicare + Choice health plans must ensure that a physician has adequate stop-loss protection if the

Options:

A.

physician has a patient panel that exceeds 25,000 patients

B.

physician receives a bonus that is based solely on quality of care, patient satisfaction, or physician participation

C.

difference between the physician’s maximum potential payments and his or her minimum potential payments is less than 25% of the maximum potential payments

D.

physician is subject to a withhold that is greater than 25% of his or her potential payments

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Questions 14

With regard to the laws and regulations on access and adequacy of provider networks, it can correctly be stated that:

Options:

A.

most access and adequacy guidelines relate to preferred provider organizations (PPOs) or managed indemnity products

B.

corporate practice of medicine laws require staff model HMOs to hire physicians directly, even if the physicians do not own the HMO

C.

any willing provider laws prevent a health plan from making exclusive or semi-exclusive arrangements with a provider or a group of providers

D.

the NAIC Managed Care Plan Network Adequacy Model Act requires states to use provider-enrollee ratios as the sole measure of network adequacy

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Questions 15

In 1996, Congress passed the Health Insurance Portability and Accountability Act (HIPAA), which increased the continuity and portability of health insurance coverage. One statement that can correctly be made about HIPAA is that it

Options:

A.

Applies to group health insurance plans only

B.

Limits the length of a health plan’s pre-existing condition exclusion period for a previously covered individual to a maximum of six months after enrollment.

C.

Guarantees access to healthcare coverage for small businesses and previously covered individuals who meet specified eligibility requirements.

D.

Guarantees renewability of group and individual health coverage, provided the insureds are still in good health

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Questions 16

The Bruin Health Plan is a Social Health Maintenance Organization (SHMO). As an SHMO, Bruin:

Options:

A.

Must provide Medicare participants with standard HMO benefits, as well as with limited long-term care benefits

B.

Does not need as great a variety of provider types or as complex a reimbursement method as does a traditional HMO

C.

Receives a payment that is based on reasonable costs and reasonable charges

D.

Most likely provides fewer supportive services than does a traditional HMO, because one of Bruin's goals is to minimize the use of community-based care

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Questions 17

In 1996, the NAIC adopted a standard for health plan coverage of emergency services. This standard is based on a concept known as the:

Options:

A.

Due process standard

B.

Subrogation standard

C.

Corrective action standard

D.

Prudent layperson standard

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Questions 18

Some states have enacted any willing provider laws. From the perspective of the health plan industry, one drawback of any willing provider laws is that they often result in a reduction of a plan’s

Options:

A.

Premium rates

B.

Ability to monitor utilization

C.

Number of primary care providers (PCPs)

D.

Number of specialists and ancillary providers

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Questions 19

From the following answer choices, choose the term that best matches the description.

Members of a physician-hospital organization (PHO) denied membership to a physician solely because the physician has admitting privileges at a competing hospital.

Options:

A.

Group boycott

B.

Horizontal division of territories

C.

Tying arrangements

D.

Concerted refusal to admit

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Questions 20

The method that the Autumn Health Plan uses for reimbursing dermatologists in its provider network involves paying them out of a fixed pool of funds that is actuarially determined for this specialty. The amount of funds that Autumn allocates to dermatologists is based on utilization and costs of services for that discipline.

Under this reimbursement method, a dermatologist who is under contract to Autumn accumulates one point for each new referral made to the specialist by Autumn’s PCPs. If the referral is classified as complicated, then the dermatologist receives 1.5 points. The value of Autumn’s dermatology services fund for the first quarter was $15,000. During the quarter, Autumn’s PCPs made 90 referrals, and 20 of these referrals were classified as complicated.

Autumn’s method of reimbursing specialty providers can best be described as a

Options:

A.

Disease-specific arrangement

B.

Contact capitation arrangement

C.

Risk adjustment arrangement

D.

Withhold arrangement

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Questions 21

The actual number of providers included in a provider network can be based on staffing ratios. One true statement about staffing ratios is that, typically:

Options:

A.

A small health plan needs fewer physicians per 1,000 than does a large plan.

B.

A closely managed health plan requires fewer providers than does a loosely managed plan.

C.

Physician-to-enrollee ratios can be used directly only by network-within-a-network model HMOs.

D.

Medicare products require fewer providers than do employer-sponsored plans of the same size.

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Questions 22

The vision benefits offered by the Omni Health Plan include clinical eye care only. The following statements describe vision care received by Omni plan members:

• Brian Pollard received treatment for a torn retina he suffered as a result of an accident

• Angelica Herrera received a general eye examination to test her vision

• Megan Holtz received medical services for glaucoma

Of these medical services, the ones that most likely would be covered by Omni's vision coverage would be the services received by:

Options:

A.

Mr. Pollard, Ms. Herrera, and Ms. Holtz

B.

Mr. Pollard and Ms. Herrera only

C.

Mr. Pollard and Ms. Holtz only

D.

Ms. Herrera and Ms. Holtz only

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Questions 23

When evaluating the success of providers in meeting standards, a health plan must make adjustments for case mix or severity. One true statement about case mix/severity adjustments is that they:

Options:

A.

Typically are more important in measuring the performance of PCPs than they are in measuring the performance of specialists

B.

Help compensate for any unusual factors that may exist in a provider's patient population or in a particular patient

C.

Tend to increase the number of providers who are considered to be outliers

D.

Allow for a more equitable comparison of data between providers of outpatient care but not providers of inpatient care

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Questions 24

Prior to the enactment of the Balanced Budget Act (BBA) of 1997, payment for Medicare-covered primary and acute care services was based on the adjusted average per capita cost (AAPCC). The AAPCC is defined as the

Options:

A.

average cost of services delivered to all patients living in a specified geographic region

B.

actuarial value of the deductible and coinsurance amounts for basic Medicare-covered benefits

C.

fee-for-service amount that the Centers for Medicaid and Medicare Services (CMS) would pay for a Medicare beneficiary, adjusted for age, sex, and institutional status

D.

average fixed monthly fee paid by all Medicare enrollees in a specified geographic region

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Questions 25

The Edgewood Health Plan uses a combination of structural, process, outcomes, and customer satisfaction measures to evaluate its network providers’ performance. Edgewood would correctly use outcomes measures to evaluate a provider’s

Options:

A.

Compliance with specific regulatory or accrediting requirement

B.

Appropriate use of specified procedures

C.

Patient progress following treatment

D.

Patient perceptions about how well the provider addresses medical problems

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Questions 26

An increasing number of health plans offer coverage for alternative healthcare services. One such alternative healthcare service is biofeedback. Biofeedback is an approach that

Options:

A.

is based on an ancient Chinese system of healing in which needles are inserted into specific sites on the body to relieve pain

B.

treats diseases with tiny doses of substances which, in healthy people, are capable of producing symptoms like those of the disease being treated

C.

uses electronic monitoring devices to teach a patient to develop conscious control of involuntary bodily functions, such as heart rate and body temperature

D.

incorporates a variety of therapies, such as homeopathy, lifestyle modification, and herbal medicines, to support and maintain the body’s ability to heal itself

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Questions 27

The provider contract that Dr. Nick Mancini has with the Utopia Health Plan includes a clause that requires Utopia to reimburse Dr. Mancini on a fee-for-service (FFS) basis until 100 Utopia members have selected him as their primary care provider (PCP). At that time, Utopia will begin reimbursing him under a capitated arrangement. This clause in Dr. Mancini's provider contract is known as:

Options:

A.

an antidisparagement clause

B.

a low-enrollment guarantee clause

C.

a retroactive enrollment changes clause

D.

an eligibility guarantee clause

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Questions 28

Grant Pelham is covered by both a workers’ compensation program and a group health plan provided by his employer. The Shipwright Health Plan administers both programs. Mr. Grant was injured while on the job and applied for benefits.

Because Mr. Pelham was injured on the job, he is entitled to receive benefits through workers’ compensation. Under the terms of the state-mandated exclusive remedy doctrine included in the workers’ compensation agreement, Mr. Pelham will most likely be prohibited from

Options:

A.

Receiving workers’ compensation benefits unless he can show that the employer was at fault for his injury

B.

Obtaining care from providers who are not members of a workers’ compensation network

C.

Suing his employer for additional benefits

D.

Claiming benefits from both workers’ compensation and his group health plan

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Questions 29

The following statements are about the delegation of network management activities from a health plan to another party. Three of the statements are true and one statement is false. Select the answer choice containing the FALSE statement:

Options:

A.

The NCQA requires a health plan to conduct all delegation oversight functions rather than delegating the responsibility for oversight to another entity.

B.

Credentialing and UM activities are the most frequently delegated functions, whereas delegation is less common for quality management (QM) and preventive health services.

C.

One reason that a health plan may choose to delegate a function is because the health plan's staff seeks external expertise for the delegated activity.

D.

When the health plan delegates authority for a function, it transfers the power to conduct the function on a day-to-day basis, as well as the ultimate accountability for the function.

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Questions 30

The Crimson Health Plan, a competitive medical plan (CMP), has entered into a Medicare risk contract. One true statement about Crimson is that, as a:

Options:

A.

CMP, Crimson is regulated by the federal government under the terms of the Tax Equity and Fiscal Responsibility Act (TEFRA)

B.

CMP, Crimson is not allowed to charge a Medicare enrollee a premium for any additional benefits it provides over and above Medicare benefits

C.

Provider under a Medicare risk contract, Crimson receives for its services a capitated payment equivalent to 85% of the AAPCC

D.

Provider under a Medicare risk contract, Crimson is required to deliver to members all Medicare-covered services, without regard to the cost of those services

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Exam Code: AHM-530
Exam Name: Network Management
Last Update: May 9, 2024
Questions: 202
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