AHIP Exam AHM-520 Topic 1 Question 82 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 82
Topic #: 1

A health plan may experience negative working capital whenever healthcare expenses generated by plan members exceed the premium income the health plan receives.

Ways in which a health plan can manage the volatility in claims payments, and therefore reduce the risk of negative working capital, include:

1. Accurately estimating incurred but not reported (IBNR) claims

2. Using capitation contracts for provider reimbursement

ABoth 1 and 2

B1 only

C2 only

DNeither 1 nor 2

Show Suggested Answer

Suggested Answer: A

by Lorean at Mar 10, 2024, 09:57 AM

Limited Time Offer

25%

Off

Get Premium AHM-520 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Isreal

9 months ago

So, the answer would be both Lillian and Telma, right?

upvoted 0 times

...

Venita

9 months ago

Another way is using capitation contracts for provider reimbursement. That's option Telma.

upvoted 0 times

...

Delbert

9 months ago

One way is accurately estimating incurred but not reported claims. That's option Lillian.

upvoted 0 times

...

Xuan

9 months ago

So, what are the ways a health plan can manage this risk?

upvoted 0 times

...

Telma

9 months ago

I agree. If expenses exceed income, it can lead to negative working capital.

upvoted 0 times

...

Lillian

9 months ago

I think managing the volatility in claims payments is crucial for a health plan.

upvoted 0 times

...

Mireya

10 months ago

I'm not too sure about that. I think the answer might be C) 2 only.

upvoted 0 times

...

Una

10 months ago

I agree with Coral. Managing incurred but not reported claims and using capitation contracts can help reduce risk.

upvoted 0 times

...

Coral

11 months ago

I think the answer is A) Both 1 and 2.

upvoted 0 times

...