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AHM-520 Dumps With Exact Questions and Answers

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AHM-520 Questions and Answers

Question # 1

The Newfeld Hospital has contracted with the Azalea Health Plan to provide inpatient services to Azalea's enrolled members. The contract calls for Azalea to provide specific stop-loss coverage to Newfeld once Newfeld's treatment costs reach $20,000 per case and for Newfeld to pay 20% of the next $50,000 of expenses for this case. After Newfeld's treatment costs on a case reach $70,000, Azalea reimburses the hospital for all subsequent treatment costs.

The maximum amount for which Newfeld is at risk for any one Azalea plan member's treatment costs is

A.

$10,000

B.

$14,000

C.

$30,000

D.

$34,000

Question # 2

This concept, which holds that a company should record the amounts associated with its business transactions in monetary terms, assumes that the value of money is stable over time. This concept provides objectivity and reliability, although its relevance may fluctuate.

From the following answer choices, choose the name of the accounting concept that matches the description.

A.

Measuring-unit concept

B.

Full-disclosure concept

C.

Cost concept

D.

Time-period concept

Question # 3

With regard to a health plan's underwriting of groups, it can correctly be stated that, generally, a

A.

Health plan will require that contributory healthcare plans have a participation level of between 50% and 70%

B.

Health plan will decline to cover a group that has been formed for the sole purpose of obtaining healthcare coverage

C.

Health plan's underwriters will not examine the age spread of the entire group being underwritten

D.

Health plan would expect a group with a large proportion of young females to have lower healthcare costs than does a similar group with a large proportion of young males

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