AHIP AHIP Certification AHM-510 Questions & Answers

• Question 71:

  In the paragraph below, a statement contains two pairs of terms enclosed in parentheses. Determine which term in each pair correctly completes the statement. Then select the answer choice containing the two terms that you have chosen.

  Every employee benefit plan governed by the Employee Retirement Income Security Act (ERISA) must distribute a summary plan description (SPD) to participants within (90 / 120) days after the date on which the plan is adopted or made effective. Thereafter, if the plan is amended, a new SPD must be distributed every (5 / 10) years.

  A. 90 / 5

  B. 90 / 10

  C. 120 / 5

  D. 120 / 10

  Correct Answer: C

• Question 72:

  One example of health plan's influence on the practice of medicine is that, during the past decade, the focus of healthcare has moved toward _________________, which is designed to reduce the overall need for healthcare services by providing patients with decision-making information.

  A. Demand management

  B. Managed competition

  C. Comprehensive coverage

  D. Private inurement

  Correct Answer: A

• Question 73:

  The Tidewater Life and Health Insurance Company is owned by its policy owners, who are entitled to certain rights as owners of the company, and it issues both participating and nonparticipating insurance policies. Tidewater is considering converting to the type of company that is owned by individuals who purchase shares of the company's stock. Tidewater is incorporated under the laws of Illinois, but it conducts business in the Canadian provinces of Ontario and Manitoba.

  Tidewater established the Diversified Corporation, which then acquired various subsidiary firms that produce unrelated products and services. Tidewater remains an independent corporation and continues to own Diversified and the subsidiaries. In order to create and maintain a common vision and goals among the subsidiaries, the management of Diversified makes decisions about strategic planning and budgeting for each of the businesses.

  By combining under Diversified a group of businesses that produce unrelated products and by consolidating the management of the businesses, Tidewater has achieved the type(s) of integration known as

  A. Conglomerate integration and operational integration

  B. Horizontal integration and operational integration

  C. Horizontal integration and virtual integration

  D. Conglomerate integration only

  Correct Answer: A

• Question 74:

  The Surrey Medical Supply Company was formed as a limited partnership. In this partnership, Victoria Lewin is one of the limited partners and Oscar Gould is a general partner. This information indicates that, with respect to the typical characteristics of limited partnerships,

  A. Ms. Lewin has more freedom to opt out of the partnership than does Mr. Gould

  B. Ms. Lewin has more liability for the debts of Surrey than does Mr. Gould

  C. both Ms. Lewin and Mr. Gould participate in the day-to-day management of Surrey

  D. the partnership will continue upon the death of Mr. Gould, whereas it will end with the death of Ms. Lewin

  Correct Answer: A

• Question 75:

  One federal law amended the Social Security Act to allow states to set their own qualification standards for HMOs that contracted with state Medicaid programs and revised the requirement that participating HMOs have an enrollment mix of no more than 50% combined Medicare and Medicaid members.

  This act, which was the true stimulus for increasing participation by health plans in Medicaid, is called the

  A. Omnibus Budget Reconciliation Act of 1981 (OBRA-81)

  B. Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)

  C. Employee Retirement Income Security Act of 1974 (ERISA)

  D. Federal Employees Health Benefits Act of 1958 (FEHB Act)

  Correct Answer: A

• Question 76:

  In the paragraph below, a statement contains two pairs of terms enclosed in parentheses. Determine which term in each pair correctly completes the statement. Then select the answer choice containing the two terms that you have chosen.

  One type of acquisition is called a stock purchase. In a typical stock purchase, a company acquires (51% / 100%) of the voting shares of another company's stock, thereby making the acquired company a subsidiary. The (acquired / acquiring) company holds all of the assets and liabilities of the acquired company.

  A. 51% / acquired

  B. 51% / acquiring

  C. 100% / acquired

  D. 100% / acquiring

  Correct Answer: C