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AHIP Exam AHM-520 Topic 2 Question 17 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 17
Topic #: 2
[All AHM-520 Questions]

In evaluating the claims experience during a given rating period of the Lucky Company, the Calaway Health Plan determined that the claims incurred by Lucky were lower than Calaway anticipated when it established Lucky's premium rate for the rating period. Calaway, therefore, refunded a portion of Lucky's premium to reflect the better-than-anticipated claims experience. This rating method is known as:

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Suggested Answer: B

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