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Question # 4

Which of the following is(are) CORRECT?

(A) Staff model HMOs can achieve maximum economies of scale but are heavily capital intensive.

(B) Staff model HMOs are closed panel.

(C) Staff model HMOs operate out of ambulatory care facilities.

A.

A & B

B.

None of the listed options

C.

B & C

D.

All of the listed options

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Question # 5

The paragraph below contains two pairs of terms enclosed in parentheses. Determine which term in each pair correctly completes the paragraph. Then select the answer choice containing the two terms you have selected.

The Harbor Health Plan convened a litigation

A.

a standing / ongoing

B.

a standing / specific

C.

an ad hoc / ongoing

D.

an ad hoc / specific

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Question # 6

When determining the premium rates it will charge a particular group, the Blue Jay Health Plan used a rating method known as community rating by class (CRC). Under this rating method, Blue Jay

A.

was allowed to use no more than four rating classes when determining how much to charge the group for health coverage

B.

was required to make the average premium in each class no more than 105% of the average premium for any other class

C.

divided its members into rating classes based on demographic factors, experience, or industry characteristics, and then charged each member in a rating class the same premium

D.

charged all employers or other group sponsors the same dollar amount for a given level of medical benefits, without adjustments for age, gender, industry, or experience

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Question # 7

Which of the following is CORRECT?

A.

Electronic transmittal of authorization is subject to the same regulatory requirements as other methods of transmittal

B.

Telephone transmittal increases data entry errors.

C.

Medical review is conducted before administrative review.

D.

Prospective review, concurrent review and retrospective review are types of utilization review

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Question # 8

The following statements describe healthcare services delivered to health plan members by plan providers. Select the statement that describes a service that would most likely require utilization review and authorization.

A.

Adele Farnsworth visited a dermatologist to have a mole removed from her arm.

B.

Jonathan Lang underwent an electrocardiogram (EKG) during an office visit with his cardiologist.

C.

Corinne Maxwell underwent physical therapy after being hospitalized for hip replacement surgery.

D.

Jose Redriguez, a 70-year-old Medicare patient, received a flu shot as part of his annual physical examination.

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Question # 9

A differences between managed indemnity & traditional indemnity

A.

Include precertification and utilization review techniques

B.

Both are the same

C.

Include network and quality review techniques

D.

A & B

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Question # 10

The following statements are about preferred provider organizations (PPOs). Select the answer choice that contains the correct statement.

A.

PPOs generally assume full financial risk for arranging medical services for their members.

B.

PPOs generally pay a larger portion of a member's medical expenses when that member uses in-network providers than when the member uses out-of-network providers.

C.

PPO networks may include primary care physicians and hospitals, but generally do not include specialists.

D.

In a PPO, the most common method used to reimburse physicians is capitation.

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Question # 11

Salient features of a Health Savings Account include all of the following except

A.

Funding by both employer & the employee

B.

Employer account ownership

C.

Account portability & roll over of funds from year to year

D.

Investment opportunities

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Question # 12

To address the problems associated with multiple data management systems, the Kayak Health Plan has begun to use a data warehouse. One likely characteristic of Kayak's data warehouse is that:

A.

It requires Kayak's individual databases to store large amounts of data that are not needed for daily operations.

B.

It contains data from internal sources only.

C.

It stores historical data rather than current data.

D.

The data in the warehouse are linked by a common subject.

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Question # 13

The following statement(s) can correctly be made about the Joint Commission on Accreditation of Healthcare Organizations (JCAHO):

A.

JCAHO's accreditation process for MCOs and healthcare networks consists of complete on-site surveys conducted every three

B.

A only

C.

Neither A nor B

D.

Both A and B

E.

B only

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Question # 14

Diabetic patients with high glucose levels requiring stabilization following treatment of an acute attack would best be served in an ___________

A.

Emergency Department

B.

Urgent Care Centre

C.

Hospice Care

D.

Observation Care Unit

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Question # 15

In the CPT system, each service or procedure is identified by

A.

Three-digit with decimal point

B.

Three-digit

C.

Five-digit with decimal point

D.

Five-digit

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Question # 16

The following statement(s) can correctly be made about electronic data interchange (EDI):

A.

EDI differs from eCommerce in that EDI involves back-and-forth exchanges of information concerning individual transactions, whereas eCommerce is the transfer of d

B.

Both A and B

C.

A only

D.

B only

E.

Neither A nor B

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Question # 17

The following statements are about the various Health Plan Accountability Models adopted by the NAIC.

A.

Under the terms of the Health Plan Network Adequacy Model Act, all health plans would be required to hold covered persons harmless against provider collections and provide continued coverage for uncompleted treatment in the event of plan insolvency

B.

The Health Carrier Grievance Procedure Model Act requires all health carriers to maintain a first-level grievance review, but it does not require any second-level review

C.

According to the Health Care Professional Credentialing Verification Model Act, a health plan must select all providers who meet the plan's credentialing criteria

D.

The Quality Assessment and Improvement Model Act exempts closed plans from implementing a quality improvement program.

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Question # 18

The Gable MCO sometimes experience-rates small groups by underwriting a number of small groups as if they constituted one large group and then evaluating the experience of the entire large group. This practice, which allows small groups to take advantage

A.

prospective experience rating

B.

pooling

C.

retrospective experience rating

D.

positioning

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Question # 19

The Madison Health Plan, a national MCO, and a local hospital system that operates its own managed healthcare network recently created a new and separate managed healthcare organization, the Pineapple Health Plan. Madison and the hospital system share own

A.

a consolidation

B.

a joint venture

C.

a merger

D.

an acquisition

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Question # 20

The Blaine Healthcare Corporation seeks to manage its quality by first identifying the best practices and best outcomes for a given procedure. Blaine can then determine areas in which it can emulate the best practices in order to equal or surpass the best

A.

provider profiling

B.

benchmarking

C.

peer review

D.

quality assessment

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Question # 21

The existing committees at the Majestic Health Plan, a health plan that is subject to the requirements of HIPAA, include the Executive Committee and the Corporate Compliance Committee. The Executive Committee serves as a long-term advisory body on issues

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Question # 22

One typical characteristic of an integrated delivery system (IDS) is that an IDS.

A.

Is more highly integrated structurally than it is operationally.

B.

Provides a full range of healthcare services, including physician services, hospital services, and ancillary services.

C.

Cannot negotiate directly with health plans, plan sponsors, or other healthcare purchasers.

D.

Performs a single business function, such as negotiating with health plans on behalf of all of the member providers.

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Question # 23

One true statement regarding ethics and laws is that the values of a community are reflected in

A.

both ethics and laws, and both ethics and laws are enforceable in the court system

B.

both ethics and laws, but only laws are enforceable in the court system

C.

ethics only, but only laws are enforceable in the court system

D.

laws only, but both ethics and laws are enforceable in the court system

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Question # 24

Most contracts between health plans and providers contain a provision which forbids providers from seeking compensation from patients if the health plan fails to compensate the provider because of insolvency or for any other reason. Such a provision is kn

A.

due process provision

B.

cure provision

C.

hold-harmless provision

D.

risk-sharing provision

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Question # 25

The following programs are part of the Alcove Health Plan's utilization management (UM) program:

  • Preventive care initiatives
  • A telephone triage program
  • A shared decision-making program
  • A self-care program

With regard to the UM programs, it is most

A.

Preventive care initiatives include immunization programs but not health promotion programs.

B.

Telephone triage program is staffed by physicians only.

C.

Shared decision-making program is appropriate for virtually any medical condition.

D.

Self-care program is intended to complement physicians' services, rather than to supersede or eliminate these services.

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Question # 26

The Ark Health Plan, is currently recruiting providers in preparation for its expansion into a new service area. A recruiter for Ark has been meeting with Dr. Nan Shea, a pediatrician who practices in Ark's new service area, in order to convince her to be

A.

Has ever participated in any quality improvement activities.

B.

Is a participating provider in a health plan that will compete with Ark in its new service area.

C.

Meets the requirements of the Ethics in Patient Referrals Act.

D.

Has had a medical malpractice claim filed or other disciplinary actions taken against her.

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Question # 27

One of the most influential pieces of legislation in the advancement of managed care within the United States was the HMO Act of 1973. One provision of the HMO Act of 1973 was that it

A.

emphasized compensating physicians based solely on the volume of medical services they provide

B.

exempted HMOs from all state licensure requirements

C.

established a process under which HMOs could elect to be federally qualified

D.

required federally qualified HMOs to relate premium levels to the health status of the individual enrollee or employer group

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Question # 28

The Citywide Health Group is a large provider-based health plan that includes physician groups, hospitals, and other facilities. In order to oversee and manage the operation of the organization, Citywide has established an enterprise scheduling system. The

A.

provide information to Citywide's management regarding provider licensure, certification, and malpractice history

B.

detect instances of overutilization, underutilization, or inappropriate utilization of medical resources

C.

allow Citywide's different components to function as a single organization in arranging access to facilities and resources

D.

facilitate the processing of requests for authorization of payment of benefits

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Question # 29

Merle Spencer has coverage under both Medicare Part A and Medicare Part B. Ms. Spencer recently was hospitalized for chest pains, and she incurred charges for:

  • The cost of hospitalization for two days
  • Diagnostic tests performed in the hospital
  • Trans

A.

ambulance and the diagnostic tests

B.

ambulance, the diagnostic tests, and the physician's professional services

C.

cost of hospitalization

D.

cost of hospitalization and the physician's professional services

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Question # 30

One factor the Sandpiper Health Plan uses to assess its quality is a clinician's bedside manner, i.e., how friendly and understanding the clinician is, whether the patient feels that the clinician listens to the patient's concerns, how well the clinical

A.

a provider service quality issue

B.

an administrative service quality issue a healthcare process quality issue

C.

a healthcare outcomes quality issue

D.

a healthcare process quality issue

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Question # 31

Khalyn Drury's employer includes managed dental care in its employee benefits package. During open enrollment, Ms. Drury enrolled in the dental plan, which provides dental services to its members in exchange for a prepayment (the premium). Dental services

A.

dental preferred provider organization (PPO)

B.

traditional fee-for-service (FFS) dental plan

C.

plan with a dental point of service (POS) option

D.

dental health maintenance organization (DHMO)

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Question # 32

Provider integration has two components: operational integration and structural integration. An example of operational integration in health plans is the:

A.

Acquisition of the Leopard Health Plan by the Hickory Health Plan.

B.

Joint venture entered into by the Eclipse Health Plan and a local hospital system to create a new health plan in which Eclipse and the hospital system share ownership.

C.

Formation of an organization by a group of providers to carry out billing, collections, and contracting with health plans for the entire group of providers.

D.

Consolidation of the Carver Health Plan and the Limestone Health Plan.

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Question # 33

Janet Riva is covered by a indemnity health insurance plan that specifies a $250 deductible and includes a 20% coinsurance provision. When Ms. Riva was hospitalized, she incurred $2,500 in medical expenses that were covered by her health plan. She incurred

A.

$1,750

B.

$1,800

C.

$2,000

D.

$2,250

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Question # 34

Many of the credentialing standards and criteria used by health plans are often taken from already existing standards established by

A.

the National Practitioner Data Bank (NPDB)

B.

the National Association of Insurance Commissioners (NAIC)

C.

the Centers for Medicare and Medicaid Services (CMS)

D.

independent accrediting organizations

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Question # 35

One true statement regarding ethics and laws is that the values of a community are reflected in

A.

both ethics and laws, and both ethics and laws are enforceable in the court system

B.

both ethics and laws, but only laws are enforceable in the court system

C.

ethics only, but only laws are enforceable in the court system

D.

laws only, but both ethics and laws are enforceable in the court system

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Question # 36

Primary care case managers (PCCMs) provide case management services to eligible Medicaid recipients. With regard to PCCMs it is correct to say that:

A.

PCCMs typically receive a case management fee, rather than reimbursement for medical services on a FFS basis, for the services they provide to Medicaid recipients.

B.

All Medicaid recipients who live in rural areas must be given a choice of at least four PCCMs.

C.

PCCMs receive a case management fee in addition to reimbursement for medical services on a FFS basis.

D.

PCCMs contract directly with the federal government to provide case management services to Medicaid recipients.

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Question # 37

One non-group market segment to which health plans market health plan products is the senior market, which is comprised mostly of persons over age 65 who are eligible for Medicare benefits. One factor that affects a health plan's efforts to market to the

A.

The Centers for Medicare and Medicaid Services (CMS) must approve all marketing materials used by health plans to market health plan products to the Medicare population

B.

managed Medicare plans typically require Medicare beneficiaries to purchase Medigap insurance to supplement gaps in coverage

C.

managed Medicare plans can refuse to cover persons with certain health problems

D.

the CMS prohibits health plans from using telemarketing to market health plan products to the Medicare population

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Question # 38

Medicare Advantage product options include:

A.

Coordinated care plans, medical savings accounts and national PPOs.

B.

Private Fee for Service plans, health care prepayment plans and medical savings accounts

C.

Coordinated care plans, regional PPOs and private fee for service plans

D.

Cost contracts, coordinated care programs and medical savings accounts.

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Question # 39

From the following answer choices, choose the description of the ethical principle that best corresponds to the term Autonomy

A.

Health plans and their providers are obligated not to harm their members

B.

Health plans and their providers should treat each member in a manner that respects the member's goals and values, and they also have a duty to promote the good of the members as a group

C.

Health plans and their providers should allocate resources in a way that fairly distributes benefits and burdens among the members

D.

Health plans and their providers have a duty to respect the right of their members to make decisions about the course of their lives

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Question # 40

The following statements describe two types, or models, of HMOs:

The Quest HMO has contracted with only one multi-specialty group of physicians. These physicians are employees of the group practice, have an equity interest in the practice, and provide

A.

A captive group a staff model

B.

A captive group a network model

C.

An independent group a network model

D.

An independent group a staff model

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Question # 41

Bart Vereen is insured by both a traditional indemnity health insurance plan, which is his primary plan, and a managed care plan. Both plans have a typical coordination of benefits (COB) provision, but neither plan has a nonduplication of benefits provision

A.

380

B.

130

C.

0

D.

550

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Question # 42

After a somewhat modest start in 2004, enrollment in HSA-related health plans more than tripled in 2005, making them today’s fastest growing type of CDHP. As of January 2006, enrollment in HSAs had reached nearly:

A.

1.2 million

B.

2.2 million

C.

3.2 million

D.

4.2 million

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Question # 43

Health plans use the following to determine the number of providers to add to a network:

A.

Staffing ratios

B.

Drive time

C.

Geographic availability

D.

All of the above

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Question # 44

Historically most HMOs have been

A.

Closed-access HMO

B.

Closed-panel HMO

C.

Open-access HMO

D.

Open-panel HMO

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Question # 45

Because many patients with behavioral health disorders do not require round-the-clock nursing care and supervision, behavioral healthcare services can be delivered effectively in a variety of settings. For example, post-acute care for behavioral health di

A.

Hospital observation units or psychiatric hospitals.

B.

Psychiatric hospitals or rehabilitation hospitals.

C.

Subacute care facilities or skilled nursing facilities.

D.

Psychiatric units in general hospitals or hospital observation units.

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Question # 46

A health plan may use one of several types of community rating methods to set premiums for a health plan. The following statements are about community rating. Select the answer choice containing the correct statement.

A.

Standard (pure) community rating is typically used for large groups because it is the most competitive rating method for large groups.

B.

Under standard (pure) community rating, a health plan charges all employers or other group sponsors the same dollar amount for a given level of medical benefits or health plan, without adjusting for factors such as age, gender, or experience.

C.

In using the adjusted community rating (ACR) method, a health plan must consider the actual experience of a group in developing premium rates for that group.

D.

The Centers for Medicare and Medicaid Services (CMS) prohibits health plans that assume Medicare risk from using the adjusted community rating (ACR) me

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Question # 47

If most of the physicians, or many of the physicians in a particular specialty, are affiliated with a single entity, then a health plan building a network in the service area _____________.

A.

Has many contracting options available.

B.

Should not contract with that entity

C.

Most likely needs to contract with that entity

D.

Should attempt to disband the existing affiliations

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Question # 48

Federal Employee Health Benefits Program (FEHBP) requires health plans offering services to federal employees and their dependents to provide

A.

Immediate access to emergency services

B.

Urgent Appointments within 24 hours

C.

Routine appointments once a m

D.

D

E.

A

F.

B & C

G.

All of the listed options

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Question # 49

Before an HMO contracts with a physician, the HMO first verifies the physician's credentials.

Upon becoming part of the HMO's organized system of healthcare, the physician is typically subject to

A.

both recredentialing and peer review

B.

recredentialing only

C.

peer review only

D.

neither recredentialing nor peer review

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Question # 50

A medical foundation is a not-for-profit entity that purchases and manages physician practices. In order to retain its not-for-profit status, a medical foundation must

A.

Provide significant benefit to the community

B.

Employ, rather than contract with, participating physicians

C.

Achieve economies of scale through facility consolidation and practice management

D.

Refrain from the corporate practice of medicine

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Question # 51

A health savings account must be coupled with an HDHP that meets federal requirements for minimum deductible and maximum out-of-pocket expenses. Dollar amounts are indexed annually for inflation. For 2006, the annual deductible for self-only coverage must

A.

$525

B.

$1,050

C.

$2,100

D.

$5,250

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Question # 52

In preparation for its expansion into a new service area, the Regal MCO is meeting with Dr. Nancy Buhner, a cardiologist who practices in Regal's new service area, in order to convince her to become one of the plan's participating providers. As part of the

A.

ensure that Dr. Buhner complies with all of the provisions of the Ethics in Patient Referrals Act

B.

learn whether Dr. Buhner is a licensed medical practitioner

C.

confirm Dr. Buhner's membership in the National Committee for Quality Assurance (NCQA)

D.

learn whether Dr. Buhner has had a medical malpractice claim filed or other disciplinary actions taken against her

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Question # 53

Allgood Medical, Inc., a health plan, has contracted with Mercy Memorial Hospital to provide inpatient medical services to Allgood's plan members. The terms of the contract specify that Allgood will reimburse Mercy Memorial on the basis of a negotiated ch

A.

per diem agreement

B.

fee-for-service agreement

C.

withhold agreement

D.

diagnostic related group (DRG) agreement

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Question # 54

Brokers are one type of distribution channel that health plans use to market their health plans. One true statement about brokers for health plan products is that, typically, brokers

A.

Are not required to be licensed by the states in which they market health plans

B.

Are compensated on a salary basis

C.

Represent only one health plan or insurer

D.

Are considered to be an agent of the buyer rather than an agent of the health plan or Insurer

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Question # 55

Ed O'Brien has both Medicare Part A and Part B coverage. He also has coverage under a PBM plan that uses a closed formulary to manage the cost and use of pharmaceuticals. Recently, Mr. O'Brien was hospitalized for an aneurysm. Later, he was transferred by

A.

Confinement in the extended-care facility after his hospitalization.

B.

Transportation by ambulance from the hospital to the extended-care facility.

C.

Physicians' professional services while he was hospitalized.

D.

physicians' professional services while he was at the extended-care facility.

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