AHIP Exam AHM-250 Topic 5 Question 106 Discussion

Actual exam question for AHIP's AHM-250 exam

Question #: 106
Topic #: 5

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 Lezlie at Jan 22, 2025, 11:00 AM

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Katie

1 months ago

I remember studying this, and I think the correct answer is A) $60.

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Mollie

1 months ago

Ha! This is a trick question. The correct answer is actually A) $60. Why? Because insurance companies always find a way to squeeze every last penny out of us.

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Lavera

9 days ago

Oh, I see. Thanks for clarifying.

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Theola

22 days ago

No, it's actually A) $60. They always try to maximize profits.

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Cassie

24 days ago

I think the answer is B) $80.

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Rory

1 months ago

I'm going with D) $160. Insurance companies are known for their generous pricing policies, so this seems like a reasonable upper limit.

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Ellen

1 months ago

I'm not sure, but I think the answer might be B) $80.

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Ligia

2 months ago

I disagree, I believe the answer is D) $160.

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Darrin

2 months ago

I think the answer is C) $120.

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Shawnda

2 months ago

Definitely C) $120. The model act is all about making health benefits affordable, so doubling the lowest rate seems a bit steep to me.

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Kendra

1 months ago

Yes, the goal of the Small Group Model Act is to ensure that small groups can access affordable health benefits, so C) $120 makes sense.

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Sylvie

1 months ago

I agree, C) $120 seems like a reasonable maximum rate to charge small groups for health benefits.

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Onita

2 months ago

The correct answer is B) $80. The model law limits the rate spread to a particular ratio, so the maximum rate the HMO can charge is double the lowest rate.

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Dylan

1 months ago

C) $120

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Lynelle

1 months ago

B) $80

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Helene

2 months ago

A) $60

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