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AHIP AHM-510 - Governance and Regulation

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Total 76 questions

Any willing provider laws have their share of proponents and opponents. Arguments commonly made in opposition to any willing provider laws include

A.

That such laws reduce the number of providers in a health plan's network

B.

That such laws limit consumer choice to coverage options that are more costly than network-based plans

C.

That such laws encourage providers to offer discounts in exchange for patient volume

D.

All of the above

There are several exceptions to the Ethics in Patient Referrals Act and its amendments (the Stark laws), which prohibit a physician from referring Medicare or Medicaid patients for certain designated services or supplies provided by entities in which the physician has a financial interest. Consider whether the situations described below qualify as exceptions to the Stark laws:

Situation A: Dr. Wong is a physician in the Marvel Health Plan's provider network and has a financial relationship with Marvel arising from the health plan's compensation for his services. Marvel is not a prepaid health plan.

Situation B: Dr. Ryder is a physician in the provider network of the Glen Health Plan, which is not a prepaid health plan. In situations of medical necessity, Dr. Ryder refers Glen patients to a physical therapy clinic that leases office space from him.

Situation C: Dr. Yost has a compensation arrangement with a health plan for providing health services under the Medicare+Choice program.

An arrangement that is exempt from the Stark laws is described in

A.

All of these situations

B.

Situations A and C only

C.

Situation B only

D.

Situation C only

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.

Inflation plays a role in the health plan environment by influencing the prices of healthcare services, supplies, and coverage. During an inflationary period, consumers typically have (more / less) purchasing power because the prices of goods and services increase (more / less) quickly than income.

A.

More / more

B.

More / less

C.

Less / more

D.

Less / less

In 1994, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) revised their 1993 healthcare-specific antitrust guidelines to include analytical principles relating to multiprovider networks. Under the new guidelines, the regulatory agencies will use the rule of reason to analyze joint pricing activities by competitors in physician or multiprovider networks only if

A.

Provider integration under the network is likely to produce significant efficiencies that benefit consumers

B.

The providers in a network share substantial financial risk

C.

The combining of providers into a joint venture enables the providers to offer a new product

D.

All of the above

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.

With regard to the state in which Tidewater is domiciled, it is correct to say that, from the perspective of both Ontario and Manitoba, Tidewater is considered to be the type of corporation known as:

A.

A foreign corporation

B.

An alien corporation

C.

A sister corporation

D.

A domestic corporation

SoundCare Health Services, an MCO, recently conducted a situation analysis. One step in this analysis required SoundCare to examine its current activities, its strengths and weaknesses, and its ability to respond to potential threats and opportunities in the environment. This activity provided SoundCare with a realistic appraisal of its capabilities. One weakness that SoundCare identified during this process was that it lacked an effective program for preventing and detecting violations of law. SoundCare decided to remedy this weakness by using the 1991 Federal Sentencing Guidelines for Organizations as a model for its compliance program.

By definition, the activity that SoundCare conducted when it examined its strengths, weaknesses, and capabilities is known as

A.

An environmental analysis

B.

An internal assessment

C.

An environmental forecast

D.

A community analysis

Several states have adopted clinical practice guidelines for treating workers' compensation injuries. Clinical practice guidelines can best be described as

A.

Fee schedules that specify the maximum amount providers may charge for treating workers' compensation patients

B.

A utilization management and quality management mechanism designed to aid providers in making decisions about the most appropriate course of treatment for a specific case

C.

Detailed plans of medical treatment designed to facilitate a patient's return to the workplace

D.

Payment practices that might technically violate the provisions of the anti-kickback statute but that will not be considered illegal and for which providers and health plans will not be subject to penalties

In the course of doing business, health plans conduct basic corporate transactions. For example, when a health plan engages in the corporate transaction known as aggressive sourcing, the health plan

A.

Chooses to contract with vendors who provide specific functions that would otherwise be performed in-house, such as paying claims

B.

Seeks to obtain the best deals from various vendors for equipment, supplies, and services such as telephones, overnight mail, computer hardware and software, and copy machines

C.

Merges with one or more companies to form an entirely new company

D.

Joins with one or more companies, but retains its autonomy and relies on the other companies to perform specific functions

One typical difference between a for-profit health plan's board of directors and a not-for-profit health plan's board of directors is that the directors in a for-profit health plan

A.

Can serve on the board for a period of no more than ten years, whereas the terms of service for a not-for-profit board's directors are usually unlimited by the director's age or by a preset maximum number of years of service

B.

Must participate in raising capital for the health plan, whereas a not-for-profit board's directors are prohibited from participating directly in raising capital for the health plan

C.

Are directly accountable to shareholders, whereas a not-for-profit board's directors are accountable to plan members and the community

D.

Are not compensated for board participation, whereas a not-for-profit board's directors are compensated for board participation

Health plans are allowed to appeal rules or regulations that affect them. Generally, the grounds for such appeals are limited either to procedural grounds or jurisdictional grounds. The Kabyle Health Plan appealed the following new regulations:

Appeal 1 - Kabyle objected to this regulation on the ground that this regulation is inconsistent with the law.

Appeal 2 - Kabyle objected to this regulation because it believed that the subject matter was outside the realm of issues that are legal for inclusion in the regulatory agency's regulations.

Appeal 3 - Kabyle objected to the process by which this regulation was adopted.

Of these appeals, the ones that Kabyle appealed on jurisdictional grounds were

A.

Appeals 1, 2, and 3

B.

Appeals 1 and 2 only

C.

Appeals 1 and 3 only

D.

Appeals 2 and 3 only