AHIP Exam AHM-520 Topic 4 Question 101 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 101
Topic #: 4

The Norton Health Plan used blended rating to develop a premium rate for the Roswell Company, a large employer group. Norton assigned Roswell a credibility factor of 0.7 (or 70%). Norton calculated Roswell's manual rate to be $200 and its experience claims cost as $180. Norton's retention charge is $3. This information indicates that Roswell's blended rate is:

A$186

B$189

C$194

D$197

Show Suggested Answer

Suggested Answer: B

by Nenita at Sep 14, 2024, 04:22 PM

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Georgiana

28 days ago

Wait, are we supposed to show our work? I just used my trusty calculator and got $194. So option C is the way to go. Oh, and did you hear about the insurance salesman who lost his calculator? He had a complete meltdown!

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Joseph

12 days ago

Haha, that's a good one about the insurance salesman!

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Olive

16 days ago

I got $194 too. Option C is correct.

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Leanora

30 days ago

Seriously? This is like basic insurance math. If you can't figure this out, you might as well become a professional finger-painter. The answer is C, $194.

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Staci

1 months ago

This is easy! You just plug in the numbers and do the math. The blended rate is $194, no doubt about it.

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Terrilyn

3 days ago

C) $194

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Jody

13 days ago

B) $189

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Herminia

18 days ago

A) $186

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Gertude

1 months ago

Wait, what? I'm pretty sure the blended rate is calculated using the credibility factor. Let me think this through... Ah, got it! The answer is C, $194.

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Edgar

1 months ago

I'm not sure, but I think the answer might be C) $194.

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Alise

2 months ago

I agree with Samira, the rationale behind it makes sense.

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Samira

2 months ago

I think the answer is A) $186.

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Truman

2 months ago

Okay, let's see. The manual rate is $200, the experience claims cost is $180, and the retention charge is $3. Hmm, I'm going to go with option B, $189.

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