AHIP Exam AHM-520 Topic 4 Question 89 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 89
Topic #: 4

In a comparison of small employer-employee groups to large employer-employee groups, it is correct to say that small employer-employee groups tend to:

AMore closely follow actuarial predictions with respect to morbidity rates

BGenerate more administrative expenses as a percentage of the total premium amount the group pays

CHave less frequent and smaller claims fluctuations

DExpose an health plan to a lower risk of anti selection

Show Suggested Answer

Suggested Answer: B

by Pansy at May 28, 2024, 09:10 PM

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Justine

5 months ago

Haha, this question is a real head-scratcher! It's like trying to herd cats when it comes to small employer-employee groups.

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Elfrieda

4 months ago

D) Expose an health plan to a lower risk of anti selection

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Tonette

4 months ago

C) Have less frequent and smaller claims fluctuations

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Diane

4 months ago

A) More closely follow actuarial predictions with respect to morbidity rates

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Alva

5 months ago

Hmm, I'm not so sure. I think option C makes the most sense - smaller groups tend to have less frequent and smaller claims fluctuations.

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Lelia

5 months ago

I disagree, I believe option D is the right answer. Smaller groups are more susceptible to adverse selection, which exposes the health plan to higher risk.

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