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

5 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!

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Narcisa

4 months ago

Great job everyone! $194 it is.

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Tegan

4 months ago

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

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Joseph

5 months ago

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

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Olive

5 months ago

I got $194 too. Option C is correct.

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Leanora

5 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.

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Staci

5 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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Loreen

4 months ago

The blended rate is $194.

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Gwen

4 months ago

D) $197

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Terrilyn

4 months ago

C) $194

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Jody

5 months ago

B) $189

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Herminia

5 months ago

A) $186

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Gertude

6 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

6 months ago

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

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Alise

6 months ago

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

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Samira

6 months ago

I think the answer is A) $186.

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Truman

6 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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