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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Georgiana

2 months 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!

upvoted 0 times

Narcisa

24 days ago

Great job everyone! $194 it is.

upvoted 0 times

...

Tegan

30 days ago

I also got $194. Looks like we all agree on the answer.

upvoted 0 times

...

Joseph

2 months ago

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

upvoted 0 times

...

Olive

2 months ago

I got $194 too. Option C is correct.

upvoted 0 times

...

Leanora

2 months 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.

upvoted 0 times

...

Staci

2 months ago

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

upvoted 0 times

Loreen

1 months ago

The blended rate is $194.

upvoted 0 times

...

Gwen

1 months ago

D) $197

upvoted 0 times

...

Terrilyn

1 months ago

C) $194

upvoted 0 times

...

Jody

2 months ago

B) $189

upvoted 0 times

...

Herminia

2 months ago

A) $186

upvoted 0 times

...

Gertude

3 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.

upvoted 0 times

...

Edgar

3 months ago

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

upvoted 0 times

...

Alise

3 months ago

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

upvoted 0 times

...

Samira

3 months ago

I think the answer is A) $186.

upvoted 0 times

...

Truman

3 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.

upvoted 0 times