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AHM-530 Network Management Questions and Answers

Questions 4

There are several approaches to providing Medicaid health plan. One such approach involves the use of organizations who contract with the state’s Medicaid agency to provide primary care as well as administrative services. These organizations are known as

Options:

A.

Enrollment brokers

B.

Primary care case managers (PCCMs)

C.

Certified medical assistants (CMAs)

D.

Prepaid health plans (PHPs)

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Questions 5

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 6

A health plan that delegates designated credentialing activities to an NCQA-centered or a Commission/URAC-centered credentials verification organization (CVO) is exempt from the due-diligence oversight requirements specified in the NCQA credentialing standards for all verification services for which the CVO has been certified:

Options:

A.

True

B.

False

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Questions 7

One true statement about the Medicaid program in the United States is that:

Options:

A.

The federal financial participation (FFP) in a state's Medicaid program ranges from 20% to 40% of the state's total Medicaid costs

B.

Medicaid regulations mandate specific minimum benefits, under the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program, for all Medicaid recipients younger than age 30

C.

The individual states have responsibility for administering the Medicaid program

D.

Non-disabled adults and children in low-income families account for the majority of direct Medicaid spending

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Questions 8

The provider contract that Dr. Bijay Patel has with the Arbor Health Plan includes a no-balance-billing clause. The purpose of this clause is to:

Options:

A.

prohibit Dr. Patel from collecting payments from Arbor plan members for medical services that he provided them, even if the services are explicitly excluded from the benefit plan

B.

allow Dr. Patel to bill patients for services only if the services are considered to be medically necessary

C.

establish the guidelines used to determine if Arbor is the primary payor of benefits in a situation in which an Arbor plan member is covered by more than one health plan

D.

require Dr. Patel to accept Arbor's payment as payment in full for medical services that he provides to Arbor plan members

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Questions 9

The Ventnor Health Plan requires the physicians in its provider network to be board certified. Ventnor has received requests to become a part of the network from the following specialists:

Cheryl Stovall, who is currently in the process of completing a residency in her field of specialization.

Thomas Kalil, who has completed a residency in his field of specialization and has passed a qualifying examination in that field within two years of completing his residency.

Roger Todd, who has completed a residency in his field of specialization but has not passed a qualifying examination in that field.

Ventnor's requirement of board certification is met by:

Options:

A.

Cheryl Stovall, Thomas Kalil, and Roger Todd.

B.

Thomas Kalil and Roger Todd only.

C.

Thomas Kalil only.

D.

None of these individuals.

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Questions 10

Social health maintenance organizations (SHMOs) and Programs of All-Inclusive Care for the Elderly (PACE) are federal programs designed to provide coordinated healthcare services to the elderly. Unlike PACE, SHMOs

Options:

A.

are reimbursed solely through Medicaid programs

B.

provide extensive long-term care

C.

are reimbursed on a fee-for-service basis

D.

limit benefits to a specified maximum amount

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Questions 11

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 12

The introductory paragraph of a provider contract is generally followed by a section called the recitals. The recitals section of the contract typically specifies the

Options:

A.

Purpose of the agreement

B.

Manner in which the provider is to bill for services

C.

Definitions of key terms to be used in the contract

D.

Rate at which the provider will be compensated

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Questions 13

The sizes of the businesses in a market affect the types of health programs that are likely to be purchased. Compared to smaller employers (those with fewer than 100 employees), larger employers (those with more than 1,000 employees) are

Options:

A.

more likely to contract with indemnity health plans

B.

more likely to offer their employees a choice in health plans

C.

less likely to contract with health plans

D.

less likely to require a wide variety of benefits

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Questions 14

Health plans use a variety of sources to find candidates to recruit for their provider networks. In general, two of the most effective methods of finding candidates are through

Options:

A.

Word of mouth and on-site training programs

B.

Word of mouth and direct mail

C.

Advertisements in local newspapers and on-site training programs

D.

Advertisements in local newspapers and direct mail

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Questions 15

The Brice Health Plan submitted to Clarity Health Services a letter of intent indicating Brice’s desire to delegate its demand management function to Clarity. One true statement about this letter of intent is that it

Options:

A.

creates a legally binding relationship between Brice and Clarity

B.

most likely contains a confidentiality clause committing Brice and Clarity to maintain the confidentiality of documents reviewed and exchanged in the process

C.

prohibits Clarity from performing similar delegation activities for other health plans

D.

most likely contains a detailed description of the functions that Brice will delegate to Clarity

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Questions 16

Determine whether the following statement is true or false:

The NCQA has established a Physician Organization Certification (POC) program for the purpose of certifying medical groups and independent practice associations for delegation of certain NCQA standards, including data collection and verification for credentialing and recredentialing.

Options:

A.

True

B.

False

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Questions 17

The Gardenia Health Plan has a national reputation for quality care. When Gardenia entered a new market, it established a preferred provider organization (PPO), a health maintenance organization (HMO), and a point-of-service product (POS) to serve the plan members in this market. All of the providers included in the HMO or the POS are included in the broader provider panel of the PPO. The POS will be a typical two-level POS that offers a cost-based incentive plans for PCPs, and the HMO is a typical staff model HMO.

The network strategy that Gardenia is using to establish its range of healthcare plans is known as the

Options:

A.

network-within-a-network approach

B.

gatekeeper approach

C.

tiered network approach

D.

preferred tier approach

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Questions 18

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.

If the Ellysium subacute care unit is typical of most hospital-based subacute skilled nursing units, then this unit could be used for patients who no longer need to be in the hospital’s acute care unit but who still require

Options:

A.

Daily medical care and monitoring

B.

Regular rehabilitative therapy

C.

Respiratory therapy

D.

All of the above

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Questions 19

The Festival Health Plan is in the process of recruiting physicians for its provider network. Festival requires its network physicians to be board certified. The following individuals are provider applicants whose qualifications are being considered:

Applicant 1 has completed his surgical residency, and he recently passed a qualifying examination in his field.

Applicant 2 has completed her residency in dermatology, and she is scheduled to take qualifying examinations in the next Six months.

Applicant 3 completed his residency in pediatric medicine six years ago, but he has not yet passed a qualifying examination in his field.

With regard to these applicants, it can correctly be stated that only

Options:

A.

Applicants 1 and 2 are board certified

B.

Applicants 2 and 3 are board certified

C.

Applicant 1 is board certified

D.

Applicant 3 is board certified

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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 Ross Health Plan compensates Dr. Cecile Sanderson on a FFS basis. In order to increase the level of reimbursement that she would receive from Ross, Dr. Sanderson submitted the code for a comprehensive office visit. The services she actually provided represented an intermediate level of service. Dr. Sanderson’s action is an example of a type of false billing procedure known as

Options:

A.

Cost shifting

B.

Churning

C.

Unbundling

D.

Upcoding

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Questions 22

The following statement(s) can correctly be made about hospitalists.

1. The hospitalist’s main function is to coordinate diagnostic and treatment activities to ensure that the patient receives appropriate care while in the hospital.

2. The hospitalist’s role clearly supports the health plan concept of disease management.

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 23

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 24

In most health plan pharmacy networks, the cost component of the reimbursement formula is based on the average wholesale price (AWP). One true statement about the AWP for prescription drugs is that

Options:

A.

AWPs tend to vary widely from region to region of the United States

B.

The AWP is often substantially higher than the actual price the pharmacy pays for prescription drugs

C.

A health plan’s contracted reimbursement to a pharmacy for prescription drugs is typically the AWP plus a percentage, such as 5%

D.

The AWP usually is lower than the estimated acquisition cost (EAC) for most prescription drugs

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Questions 25

The NPDB specifies the entities that are eligible to request information from the data bank, as well as the conditions under which requests are allowed. In general, entities that are eligible to request information from the NPDB include

Options:

A.

medical malpractice insurers and the general public

B.

medical malpractice insurers and professional societies that are screening applicants for membership

C.

the general public and state licensing boards

D.

state licensing boards and professional societies that are screening applicants for membership

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Questions 26

The Gardenia Health Plan has a national reputation for quality care. When Gardenia entered a new market, it established a preferred provider organization (PPO), a health maintenance organization (HMO), and a point-of-service product (POS) to serve the plan members in this market. All of the providers included in the HMO or the POS are included in the broader provider panel of the PPO. The POS will be a typical two-level POS that offers a cost-based incentive plans for PCPs, and the HMO is a typical staff model HMO.

The following statement(s) can correctly be made about Gardenia’s establishment of the PPO and the staff model HMO in its new market:

1. When establishing its PPO network, Gardenia most likely initiated outcomes measurement tools and developed collaborative process improvement relationships with providers.

2. To avoid high overhead expenses in the early stages of market evelopment, Gardenia’s HMO most likely contracted with specialists and ancillary providers until the plan’s membership grew to a sufficient level to justify employing these specialists.

Options:

A.

Both 1 and 2

B.

Neither 1 nor 2

C.

1 Only

D.

2 Only

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Questions 27

With regard to the compensation of dental care providers in a managed dental care system, it is correct to state that, typically:

Options:

A.

dental PPOs compensate dentists on a capitated basis

B.

group model dental HMOs (DHMOs) compensate general dental practitioners on a salaried basis

C.

independent practice association (IPA)-model dental HMOs (DHMOs) capitate general dental practitioners

D.

staff model dental HMOs (DHMOs) compensate dentists on an FFS basis

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Questions 28

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 29

The provider contract that the Canyon health plan has with Dr. Nicole Enberg specifies that she cannot sue or file any claims against a Canyon plan member for covered services, even if Canyon becomes insolvent or fails to meet its financial obligations. The contract also specifies that Canyon will compensate her under a typical discounted fee-for-service (DFFS) payment system.

During its recredentialing of Dr. Enberg, Canyon developed a report that helped the health plan determine how well she met Canyon's standards. The report included cumulative performance data for Dr. Enberg and encompassed all measurable aspects of her performance. This report included such information as the number of hospital admissions Dr. Enberg had and the number of referrals she made outside of Canyon's provider network during a specified period. Canyon also used process measures, structural measures, and outcomes measures to evaluate Dr. Enberg's performance.

Canyon used a process measure to evaluate the performance of Dr. Enberg when it evaluated whether:

Options:

A.

Dr. Enberg's young patients receive appropriate immunizations at the right ages

B.

Dr. Enberg's young patients receive appropriate immunizations at the right ages

C.

The condition of one of Dr. Enberg's patients improved after the patient received medical treatment from Dr. Enberg

D.

Dr. Enberg's procedures are adequate for ensuring patients' access to medical care

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Questions 30

The Adobe Health Plan complies with all of the provisions of the Newborns' and Mothers' Health Protection Act (NMHPA) of 1996. Kristen Netzger, an Adobe enrollee, was hospitalized for a cesarean delivery. Amy Davis, also an Adobe enrollee, was hospitalized for a normal delivery. From the following answer choices, select the response that indicates the minimum length of time for which Adobe, under NMHPA, most likely must provide benefits for the hospitalizations of Ms. Netzger and Ms. Davis.

Options:

A.

Ms. Netzger = 48 hours

Ms. Davis = 48 hours

B.

Ms. Netzger = 72 hours

Ms. Davis = 72 hours

C.

Ms. Netzger = 96 hours

Ms. Davis = 48 hours

D.

Ms. Netzger = 96 hours

Ms. Davis = 72 hours

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Exam Code: AHM-530
Exam Name: Network Management
Last Update: May 2, 2024
Questions: 202
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