AHIP Exam AHM-250 Topic 2 Question 104 Discussion

Actual exam question for AHIP's AHM-250 exam

Question #: 104
Topic #: 2

The National Association of Insurance Commissioners (NAIC) developed the Small Group Model Act to enable small groups to obtain accessible, yet affordable, group health benefits. The model law limits the rate spread, which is the difference between the highest and lowest rates that a health plan charges small groups, to a particular ratio.

According to the Model Act, for example, if the lowest rate an HMO charges a small group for a given set of medical benefits is $40, then the maximum rate the HMO can charge for the same set of benefits is

A$60

B$80

C$120

D$160

Show Suggested Answer

Suggested Answer: B

by Kimberlie at Dec 08, 2024, 05:49 AM

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Lashawnda

2 months ago

Haha, I bet the insurance companies would love to charge $160 if they could. Good thing the NAIC is keeping them in check!

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Lauran

2 months ago

The question says the model act limits the rate spread, so the answer has to be C) $120. It's a straightforward calculation.

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Gwenn

1 months ago

So, the maximum rate the HMO can charge is $120 for the same set of benefits.

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Mendy

1 months ago

Yes, that makes sense. The rate spread is limited to a particular ratio.

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Cruz

2 months ago

I think the answer is C) $120.

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Geraldo

3 months ago

Because the rate spread is limited to a particular ratio, so the maximum rate should be higher than the lowest rate.

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Ira

3 months ago

Why do you think it's $120?

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Geraldo

3 months ago

I disagree, I believe the answer is C) $120.

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Lynelle

3 months ago

Yep, I agree with Lyda. The ratio is 3:1, so the maximum rate has to be $120 if the lowest rate is $40.

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Markus

2 months ago

That makes sense. Thanks for clarifying.

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Viola

2 months ago

So, the maximum rate the HMO can charge is $120.

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Devora

2 months ago

Yes, you are correct. The ratio is 3:1.

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Mitsue

2 months ago

I think the answer is C) $120.

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Lyda

3 months ago

I think the correct answer is C) $120. The model act limits the rate spread, so if the lowest rate is $40, the maximum rate can be no more than 3 times that amount.

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Elouise

3 months ago

That's correct, the maximum rate the HMO can charge is $120.

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Carma

3 months ago

I agree with you, the correct answer is C) $120.

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Ira

4 months ago

I think the answer is A) $60.

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