AHIP AHM-520 Exam With Confidence Using Practice Dumps

larger than its assumed underwriting margin, and the plan's actual expense margin was higher than its assumed expense margin

larger than its assumed underwriting margin, but the plan's actual expense margin was lower than its assumed expense margin

smaller than its assumed underwriting margin, but the plan's actual expense margin was higher than its assumed expense margin

smaller than its assumed underwriting margin, and the plan's actual expense margin was lower than its assumed expense margin

One reason that health plans in the Medicare and Medicaid markets experience financial risk is that government regulations determine which services must be provided to Medicare and Medicaid enrollees.

Effective use of hospital utilization is the single most likely factor to contribute to the success of a Medicare-contracting health plan.

If a Medicare-contracting health plan is a provider-sponsored organization (PSO), it is prohibited from sharing financial risk with its providers.

Typically, providers are more reluctant to accept financial risk in connection with providing services to the Medicaid population than with providing services to the Medicare population.

Cash receipt, but not cash disbursement, is an important component of cash-basis accounting

Most companies use a pure cash-basis accounting system

Cash-basis accounting records revenue according to the realization principle and expenses according to the matching principle

Health insurance companies and health plans that fall under the jurisdiction of state insurance commissioners must report some items on a cash basis for statutory reporting purposes