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AHM-530 Network Management Question and Answers

Question # 4

To protect providers against business losses, many health plan-provider contracts include carve-out provisions to help providers manage financial risk. The following statements are examples of such provisions:

The Apex Health Plan carves out immunizations from PCP capitations. Apex compensates PCPs for immunizations on a case rate basis.

The Bengal Health Plan carves out behavioral healthcare services from the scope of PCP services because these services require specialized knowledge and skills that most PCPs do not possess.

From the answer choices below, select the response that best identifies the types of carve-outs used by Apex and Bengal.

A.

Apex: disease-specific carve-out

Bengal: specialty services carve-out

B.

Apex: disease-specific carve-out

Bengal: specific-service carve-out

C.

Apex: specific-service carve-out

Bengal: specialty services carve-out

D.

Apex: specific-service carve-out

Bengal: disease-specific carve-out

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Question # 5

From the following answer choices, choose the term that best matches the description.

An integrated delivery system (IDS), which controls most providers in a particular specialty, agrees to provide that specialty service to a health plan only on the condition that the health plan agree to contract with the IDS for other services.

A.

Group boycott

B.

Horizontal division of territories

C.

Tying arrangements

D.

Concerted refusal to admit

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Question # 6

The Avignon Company discontinued its contract with a traditional indemnity insurer and contracted exclusively with the Minaret Health Plan to provide the sole healthcare plan to Avignon’s employees. By agreeing to an exclusive contract with Minaret, Avignon has entered into a type of healthcare contract known as

A.

a carrier guarantee arrangement

B.

open access

C.

total replacement coverage

D.

selective contract coverage

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Question # 7

One type of fee schedule payment system assigns a weighted unit value for each medical procedure or service based on the cost and intensity of that service. Under this system, the unit values for procedural services are generally higher than the unit values for cognitive services. This system is known as a

A.

Wrap-around payment system

B.

Relative value scale (RVS) payment system

C.

Resource-based relative value scale (RBRVS) system

D.

Capped fee system

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Question # 8

Salvatore Arris is a member of the Crescent Health Plan, which provides its members with a full range of medical services through its provider network. After suffering from debilitating headaches for several days, Mr. Arris made an appointment to see Neal Prater, a physician’s assistant in the Crescent network who provides primary care under the supervision of physician Dr. Anne Hunt. Mr. Prater referred Mr. Arris to Dr. Ginger Chen, an ophthalmologist, who determined that Mr. Arris’ symptoms were indicative of migraine headaches. Dr. Chen prescribed medicine for Mr. Arris, and Mr. Arris had the prescription filled at a pharmacy with which Crescent has contracted. The pharmacist, Steven Tucker, advised Mr. Arris to take the medicine with food or milk. In this situation, the person who functioned as an ancillary service provider is

A.

Mr. Prater

B.

Dr. Hunt

C.

Dr. Chen

D.

Mr. Tucker

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Question # 9

Health plans use a variety of sources to find candidates to recruit for their provider networks. In general, two of the most effective methods of finding candidates are through

A.

Word of mouth and on-site training programs

B.

Word of mouth and direct mail

C.

Advertisements in local newspapers and on-site training programs

D.

Advertisements in local newspapers and direct mail

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Question # 10

The method of pharmaceutical reimbursement under which a plan member obtains prescription drugs from participating network pharmacies by presenting proper identification and paying a specified copayment is the

A.

Wholesale acquisition cost (WAC) approach

B.

Reimbursement approach

C.

Service approach

D.

Cognitive approach

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Question # 11

If the Oconee Health Plan reimburses its specialty care physicians (SCPs) under a typical retainer method, then Oconee pays SCPs

A.

Aseparate amount for each service provided, and the payment amount is based solely on a resource-based relative value scale (RBRVS)

B.

Aspecified fee that remains the same regardless of how much or how little time or effort is spent on the medical service performed

C.

Aset amount each month, and Oconee reconciles its payment at periodic intervals on the basis of actual utilization

D.

Aset amount of cash equivalent to a defined time period’s expected reimbursable charges

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Question # 12

The method that the Autumn Health Plan uses for reimbursing dermatologists in its provider network involves paying them out of a fixed pool of funds that is actuarially determined for this specialty. The amount of funds that Autumn allocates to dermatologists is based on utilization and costs of services for that discipline.

Under this reimbursement method, a dermatologist who is under contract to Autumn accumulates one point for each new referral made to the specialist by Autumn’s PCPs. If the referral is classified as complicated, then the dermatologist receives 1.5 points. The value of Autumn’s dermatology services fund for the first quarter was $15,000. During the quarter, Autumn’s PCPs made 90 referrals, and 20 of these referrals were classified as complicated.

Autumn’s method of reimbursing specialty providers can best be described as a

A.

Disease-specific arrangement

B.

Contact capitation arrangement

C.

Risk adjustment arrangement

D.

Withhold arrangement

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Question # 13

One reimbursement method that health plans can use for hospitals is the ambulatory payment classifications (APCs) method. APCs bear a resemblance to the diagnosis-related groups (DRGs) method of reimbursement. However, when comparing APCs and DRGs, one of the primary differences between the two methods is that only the APC method

A.

is typically used for outpatient care

B.

assigns a single code for treatment

C.

applies to treatment received during an entire hospital stay

D.

is considered to be a retrospective payment system

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Question # 14

The sizes of the businesses in a market affect the types of health programs that are likely to be purchased. Compared to smaller employers (those with fewer than 100 employees), larger employers (those with more than 1,000 employees) are

A.

more likely to contract with indemnity health plans

B.

more likely to offer their employees a choice in health plans

C.

less likely to contract with health plans

D.

less likely to require a wide variety of benefits

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Question # 15

The introductory paragraph of a provider contract is generally followed by a section called the recitals. The recitals section of the contract typically specifies the

A.

Purpose of the agreement

B.

Manner in which the provider is to bill for services

C.

Definitions of key terms to be used in the contract

D.

Rate at which the provider will be compensated

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Question # 16

The Enterprise Health Plan has indicated an interest in delegating its medical records review activities to the Teal Group and has forwarded a typical letter of intent to Teal. One true statement about this letter of intent is that it:

A.

Is a contract that creates a legally binding relationship between Enterprise and Teal

B.

Cannot include a confidentiality clause

C.

Serves as a delegation agreement between Enterprise and Teal

D.

Outlines the delegation oversight process

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Question # 17

As an authorized Medicare+Choice plan, the Brightwell HMO must satisfy CMS requirements regulating access to covered services. In order to ensure that its network provides adequate access, Brightwell must

A.

Allow enrollees to determine whether they will receive primary care from a physician, nurse practitioner, or other qualified network provider

B.

Base a provider’s participation in the network, reimbursement, and indemnification levels on the provider’s license or certification

C.

Define its service area according to community patterns of care

D.

Require enrollees to obtain prior authorization for all emergency or urgently needed services

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Question # 18

The following activities are the responsibility of either the Nova Health Plan's risk management department or its medical management department:

A.

Protecting Nova's members against harm from medical care

B.

Improving the overall health status of Nova members by coordinating care across individual episodes of care and the different providers who treat the member

C.

Protecting Nova against financial loss associated with the delivery of healthcare

D.

Establishing outreach programs to encourage the use of preventive health services by Nova's members of these activities, the ones that are more likely to be the responsibility of Nova's risk management department rather than its medical management department are activities:

E.

A, B, and C

F.

A, C, and D

G.

A and C

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Question # 19

With regard to the compensation of dental care providers in a managed dental care system, it is correct to state that, typically:

A.

dental PPOs compensate dentists on a capitated basis

B.

group model dental HMOs (DHMOs) compensate general dental practitioners on a salaried basis

C.

independent practice association (IPA)-model dental HMOs (DHMOs) capitate general dental practitioners

D.

staff model dental HMOs (DHMOs) compensate dentists on an FFS basis

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Question # 20

The Edgewood Health Plan uses a combination of structural, process, outcomes, and customer satisfaction measures to evaluate its network providers’ performance. Edgewood would correctly use outcomes measures to evaluate a provider’s

A.

Compliance with specific regulatory or accrediting requirement

B.

Appropriate use of specified procedures

C.

Patient progress following treatment

D.

Patient perceptions about how well the provider addresses medical problems

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Question # 21

As part of the credentialing process, many health plans use the National Practitioner Data Bank (NPDB) to learn information about prospective members of a provider network. One true statement about the NPDB is that:

A.

It is maintained by the individual states

B.

It primarily includes information about any censures, reprimands, or admonishments against any physicians who are licensed to practice medicine in the United States

C.

The information in the NPDB is available to the general public

D.

It was established to identify and discipline medical practitioners who act unprofessionally

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Question # 22

The following statement(s) can correctly be made about financial arrangements between health plans and emergency departments of hospitals:

A.

These arrangements typically include payments for services rendered in the emergency department by a health plan's primary or specialty care providers.

B.

Most of these arrangements are structured through the health plan's contract with the hospital.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Question # 23

Health plans typically conduct two types of reviews of a provider's medical records: an evaluation of the provider's medical record keeping (MRK) practices and a medical record review (MRR). One true statement about these types of reviews is that:

A.

An MRK covers the content of specific patient records of a provider.

B.

The NCQA requires an examination of MRK with all of a health plan's office evaluations.

C.

An MRR includes a review of the policies, procedures, and documentation standards the provider follows to create and maintain medical records.

D.

The NCQA requires MRR for both credentialing and recredentialing of providers in a health plan's network.

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Question # 24

CMS Medicare + Choice regulations include a provision that allows health plans to deny benefits for any services the health plan objects to on moral or religious grounds. The provision that exempts health plans from providing such services is known as

A.

a conscience protection exception

B.

a hold harmless clause

C.

a medical necessity determination

D.

an intermediate sanction

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Question # 25

The following statements are about fee-for-service (FFS) payment systems. Select the answer choice containing the correct statement:

A.

A discounted fee-for-service (DFFS) system is usually easier for a health plan to administer than is a fee schedule system.

B.

A case rate payment system offers providers an incentive to take an active role in managing cost and utilization.

C.

One reason that health plans use a relative value scale (RVS) payment system is that RVS values for cognitive services have traditionally been higher than the values for procedural services.

D.

One reason that health plans use a resource-based relative value scale (RBRVS) is that this system includes weighted unit values for all types of procedures.

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Question # 26

The following statements are about the delegation of network management activities from a health plan to another party. Three of the statements are true and one statement is false. Select the answer choice containing the FALSE statement:

A.

The NCQA requires a health plan to conduct all delegation oversight functions rather than delegating the responsibility for oversight to another entity.

B.

Credentialing and UM activities are the most frequently delegated functions, whereas delegation is less common for quality management (QM) and preventive health services.

C.

One reason that a health plan may choose to delegate a function is because the health plan's staff seeks external expertise for the delegated activity.

D.

When the health plan delegates authority for a function, it transfers the power to conduct the function on a day-to-day basis, as well as the ultimate accountability for the function.

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Question # 27

The Azure Health Plan strives to ensure for its plan members the best possible level of care from its providers. In order to maintain such high standards, Azure uses a variety of quantitative and qualitative (behavioral) measures to determine the effectiveness of its providers. Azure then compares the clinical and operational practices of its providers with those of other providers outside the network, with the goal of identifying and implementing the practices that lead to the best outcomes.

The comparative method of evaluation that Azure uses to identify and implement the practices that lead to the best outcomes is known as

A.

Case mix analysis

B.

Outcomes research

C.

Benchmarking

D.

Provider profiling

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Question # 28

Dr. Ahmad Shah and Dr. Shantelle Owen provide primary care services to Medicare+Choice enrollees of health plans under the following physician incentive plans:

Dr. Shah receives $40 per enrollee per month for providing primary care and an additional $10 per enrollee per month if the cost of referral services falls below a specified level

Dr. Owen receives $30 per enrollee per month for providing primary care and an additional $15 per enrollee per month if the cost of referral services falls below a specified level

The use of a physician incentive plan creates substantial risk for

A.

Both Dr. Shah and Dr. Owen

B.

Dr. Shah only

C.

Dr. Owen only

D.

Neither Dr. Shah nor Dr. Owen

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Question # 29

The Zephyr Health Plan identifies members for whom subacute care might be an appropriate treatment option. The following individuals are members of Zephyr:

Selena Tovar, an oncology patient who requires radiation oncology services, chemotherapy, and rehabilitation.

Dwight Borg, who is in excellent health except that he currently has sinusitis.

Timothy O'Shea, who is beginning his recovery from brain injuries caused by a stroke.

Subacute care most likely could be an appropriate option for:

A.

Ms. Tovar, Mr. Borg, and Mr. O'Shea

B.

Ms. Tovar and Mr. O'Shea only

C.

Mr. O'Shea only

D.

Mr. Borg only

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Question # 30

There are several approaches to providing Medicaid health plan. One such approach involves the use of organizations who contract with the state’s Medicaid agency to provide primary care as well as administrative services. These organizations are known as

A.

Enrollment brokers

B.

Primary care case managers (PCCMs)

C.

Certified medical assistants (CMAs)

D.

Prepaid health plans (PHPs)

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