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AHM-540 Medical Management Questions and Answers

Questions 4

The Noble Health Plan conducted a cost/benefit analysis of the following four prescription drugs:

Benefit Cost

Drug A $525 $350

Drug B $450 $250

Drug C $400 $200

Drug D $350 $100

According to this analysis, the drug that represents the most efficient use of resources is

Options:

A.

Drug A

B.

Drug B

C.

Drug C

D.

Drug D

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Questions 5

In order for a health plan’s performance-based quality improvement programs to be effective, the desired outcomes must be

Options:

A.

achievable within a specified timeframe

B.

defined in terms of multiple results

C.

expressed in subjective, qualitative terms

D.

all of the above

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Questions 6

In order to achieve changes in outcomes, health plans make changes to existing structures and processes. The introduction of preauthorization as an attempt to control overuse of services is an example of a reactive change. Reactive changes are typically

Options:

A.

both planned and controlled

B.

planned, but they are rarely controlled

C.

controlled, but they are rarely planned

D.

neither planned nor controlled

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Questions 7

The following statement(s) can correctly be made about the scope of case management:

1. Case management incorporates activities that may fall outside a health plan’s typical responsibilities, such as assessing a member’s financial situation

2. Case management generally requires a less comprehensive and complex approach to a course of care than does utilization review

3. Case management is currently applicable only to medical conditions that require inpatient hospital care and are categorized as catastrophic in terms of health and/or costs

Options:

A.

All of the above

B.

1 and 2 only

C.

2 and 3 only

D.

1 only

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Questions 8

Determine whether the following statement is true or false:

All health plans participating in the Federal Employee Health Benefits Program (FEHBP) are required to use the Consumer Assessment of Health Plans (CAHPS) to measure customer satisfaction.

Options:

A.

True

B.

False

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Questions 9

The following statements are about QAPI as it applies to Medicare+Choice plans and Medicaid health plan entities. Select the answer choice containing the correct statement.

Options:

A.

QAPI provides separate sets of standards for Medicaid MCEs and Medicare+Choice plans.

B.

Medicaid primary care case management (PCCM) programs are required to comply with all QAPI standards.

C.

QISMC standards for quality measurement and improvement apply only to clinical services delivered to Medicare and Medicaid enrollees.

D.

States that require Medicaid MCEs to comply with QAPI standards are considered to be in compliance with CMS quality assessment and improvement regulations.

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Questions 10

The following statements are about the characteristics of a utilization review (UR) program. Three of the statements are true and one is false. Select the answer choice containing the FALSE statement.

Options:

A.

A primary goal of UR is to address practice variations through the application of uniform standards and guidelines.

B.

UR evaluates whether the services recommended by a member’s provider are covered under the benefit plan.

C.

UR recommends the procedures that providers should perform for plan members.

D.

A health plan’s UR program is usually subject to review and approval by the state insurance and/or health departments.

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Questions 11

Economically, health plans cannot provide coverage for every drug available from every manufacturer. As a result, purchaser contracts often include provisions specifying that certain drugs or drug types will not be covered. These provisions are referred to as

Options:

A.

limitations

B.

exceptions

C.

exclusions

D.

drug edits

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Questions 12

To facilitate electronic commerce (eCommerce), a health plan may establish a secured extranet. One true statement about a secured extranet is that it is

Options:

A.

based on Web-based technologies

B.

available only to the employees of the health plan

C.

publicly available, so the potential exists for unauthorized access to a health plan’s proprietary systems

D.

used to handle the majority of health plan eCommerce

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Questions 13

The paragraph below contains an incomplete statement. Select the answer choice containing the term that correctly completes the paragraph.

The Balanced Budget Act (BBA) of 1997 established the use of ___________ to determine coverage of emergency services for Medicare and Medicaid enrollees in health plans.

Options:

A.

utilization management standards

B.

the prudent layperson standard

C.

preauthorization

D.

diagnosis-based retrospective review

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Questions 14

The paragraph below contains two pairs of phrases enclosed in parentheses. Select the phrase in each pair that correctly completes the paragraph. The select the answer choice containing the two phrases you have selected.

Calvin Montrose, age 75, has difficulty performing basic self-care activities, such as bathing, dressing, and eating, without assistance. This information indicates that Mr. Montrose needs assistance with (activities of daily living / instrumental activities of daily living) that are used to measure his (functional status / health status).

Options:

A.

activities of daily living / functional status

B.

activities of daily living / health status

C.

instrumental activities of daily living / functional status

D.

instrumental activities of daily living / health status

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Questions 15

Determine whether the following statement is true or false:

The delegation of medical management functions to providers can occur without the transfer of financial risk.

Options:

A.

True

B.

False

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Questions 16

Step-therapy is a form of prior authorization that reserves the use of more expensive medications for cases in which the use of less expensive medications has been unsuccessful. Step-therapy is appropriate for situations in which

1. A significant percentage of those treated with the initial therapy will require the second therapy

2. The delay created when a patient moves from one therapy to the next therapy will not cause serious or permanent effects

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 17

The Shoreside Health Plan recently added coverage for behavioral healthcare services to its benefit package. In order to support the quality of its behavioral healthcare services, Shoreside plans to seek accreditation for its behavioral healthcare program. Accreditation specifically designed for behavioral healthcare programs is available through

1. The Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

2. The National Committee for Quality Assurance (NCQA)

3. The American Accreditation HealthCare Commission/URAC (URAC)

Options:

A.

All of the above

B.

1 and 2 only

C.

2 and 3 only

D.

1 only

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Questions 18

Nilay Sharma suffered a small wound while working in his yard and was taken to a local hospital for treatment. A triage nurse at the hospital evaluated Mr. Sharma’s condition and directed him to an outpatient unit in the hospital where a physician assistant examined, cleaned, and sutured the wound. Mr. Sharma returned home following treatment. The care Mr. Sharma received at the hospital is an example of the type of care known as

Options:

A.

specialty referral

B.

primary prevention

C.

urgent care

D.

emergency care

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Questions 19

A health plan's preventive care initiatives may be classified into three main categories: primary prevention, secondary prevention, and tertiary prevention. Secondary prevention refers to activities designed to

Options:

A.

develop an appropriate treatment strategy for patients whose conditions require extensive, complex healthcare

B.

educate and motivate members to prevent illness through their lifestyle choices

C.

prevent the occurrence of illness or injury

D.

detect a medical condition in its early stages and prevent or at least delay disease progression and complications

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Questions 20

Selene Varga is participating in her health plan’s disease management program for congestive heart failure. Ms. Varga’s health status is regularly monitored and managed by a licensed nurse who visits Ms. Varga at her home to administer treatment and assess the need for changes in Ms. Varga’s overall care plan. This information indicates that Ms. Varga is participating in the type of disease management program known as a

Options:

A.

coordinated outreach model program

B.

case management model program

C.

hub-and-spoke model program

D.

group clinic model program

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Questions 21

Three general categories of coverage policy—medical policy, benefits administration policy, and administrative policy—are used in conjunction with purchaser contracts to determine a health plan’s coverage of healthcare services and supplies. With respect to the characteristics of the three types of coverage policy, it is correct to say that a health plan’s

Options:

A.

medical policy evaluates clinical services against specific benefits language rather than against scientific evidence

B.

benefits administration policy determines whether a particular service is experimental or investigational

C.

benefits administration policy focuses on both clinical and nonclinical coverage issues

D.

administrative policy contains the guidelines to be followed when handling member and provider complaints and disputes

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Questions 22

Elaine Newman suffered an acute asthma attack and was taken to a hospital emergency department for treatment. Because Ms. Newman’s condition had not improved enough following treatment to warrant immediate release, she was transferred to an observation care unit. Transferring Ms. Newman to the observation care unit most likely

Options:

A.

resulted in unnecessarily expensive charges for treatment

B.

prevented Ms. Newman from receiving immediate attention for her condition

C.

gave Ms. Newman access to more effective and efficient treatment than she could have obtained from other providers in the same region

D.

allowed clinical staff an opportunity to determine whether Ms. Newman required hospitalization without actually admitting her

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Questions 23

Many health plans use clinical pathways to help manage the delivery of acute care services to plan members. One true statement about clinical pathways is that they

Options:

A.

determine which healthcare services are medically necessary and appropriate for a particular patient in a particular situation

B.

outline the services that will be delivered, the providers responsible for delivering the services, the timing of delivery, the setting in which services are delivered, and the expected outcomes of the interventions

C.

cover only services delivered in an acute inpatient setting

D.

address medical conditions that affect a small segment of a given population and with which the majority of providers are unfamiliar

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Questions 24

Health plans conduct evaluations on the efficiency and effectiveness of their quality improvement activities. With regard to the effectiveness of quality improvement plans, it is correct to say that

Options:

A.

effectiveness is the relationship between what the organization puts into an improvement plan and what it gets out of the plan

B.

effectiveness is measured by reviewing outcomes to determine the accuracy or appropriateness of the strategy and the adequacy of resources allocated to that strategy

C.

the effectiveness of an action plan is typically measured with a concurrent evaluation

D.

an evaluation of plan effectiveness produces one of two results: the plan either (a) achieved the desired outcomes or (b) did not achieve the desired outcomes and is unlikely to do so under current conditions

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Questions 25

Health plans arrange for the delivery of various levels of healthcare, including

1. Emergency care

2. Urgent care

3. Primary care delivered in a provider’s office

In a ranking of these levels of care according to cost, beginning with the least expensive level of care and ending with the most expensive level of care, the correct order would be

Options:

A.

1—2—3

B.

2—3—1

C.

3—1—2

D.

3—2—1

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Questions 26

With respect to the activities of MCO medical directors, it is correct to say that medical directors typically perform all of the following activities EXCEPT

Options:

A.

maintaining clinical practices

B.

delivering performance feedback to providers

C.

participating in utilization management (UM) activities

D.

educating other MCO staff about new clinical developments or provider innovations that might impact clinical practice management

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Questions 27

Various government and independent agencies have created tools to measure and report the quality of healthcare. One performance measurement tool that was developed by the Agency for Healthcare Research and Quality (AHRQ) is

Options:

A.

the Health Plan Employer Data and Information Set (HEDIS®), which is a report card system for hospitals and long-term care facilities

B.

HEDIS, which is a performance measurement tool that addresses both effectiveness of care and plan member satisfaction

C.

the Consumer Assessment of Health Plans (CAHPS®), which was established to develop and implement a national strategy for quality measurement and reporting

D.

CAHPS, which is a tool that measures consumer satisfaction with specific aspects of health plan services

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Questions 28

Maxwell Midler’s health plan operates a drug formulary that includes a typical three-tier copayment structure with required copayments of $5, $10, and $25. Mr. Midler recently filled a prescription for a $75 drug that was not included in the formulary. According to the plan’s formulary copayment structure, the amount that Mr. Midler was required to pay for his prescription was

Options:

A.

$5

B.

$10

C.

$25

D.

$75

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Questions 29

Increased demands for performance information have resulted in the development of various health plan report cards. With respect to most of the report cards currently available, it is correct to say

Options:

A.

that they are focused primarily on health maintenance organization (HMO) plans

B.

that they are based on data collected for the Health Plan Employer Data and Information Set (HEDIS) 3.0

C.

that they are used to rank the performance of various health plans

D.

all of the above

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Questions 30

The Harbor Health Plan’s formulary policy encourages network pharmacists who are asked to fill a prescription for a costly, brand-name drug to dispense a different chemical entity within the same drug class in order to reduce costs. This type of drug substitution is referred to as

Options:

A.

generic substitution, and prescriber approval is not required

B.

generic substitution, and prescriber approval is always required

C.

therapeutic substitution, and prescriber approval is not required

D.

therapeutic substitution, and prescriber approval is always required

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Questions 31

The following statement(s) can correctly be made about the characteristics of peer review:

1. Peer review is applicable to either single episodes of care or to entire programs of care

2. Most peer review is conducted concurrently

3. Under the Health Care Quality Improvement Program (HCQIP), peer review is required for services furnished to Medicare and Medicaid recipients enrolled in health plans

Options:

A.

All of the above

B.

1 and 2 only

C.

1 and 3 only

D.

2 and 3 only

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Questions 32

The Garnet Health Plan uses provider profiling to measure and improve provider performance. Provider profiling most likely allows Garnet to

Options:

A.

evaluate all providers without considering differences in risk

B.

focus on specific clinical decisions of Garnet’s providers rather than on patterns of care

C.

identify the outliers and high-value providers in its provider network

D.

measure the effectiveness, but not the efficiency, of Garnet’s providers

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Questions 33

The paragraph below contains an incomplete statement. Select the answer choice containing the term that correctly completes the paragraph.

Definitions of quality healthcare vary; however, four dimensions are essential to quality healthcare services. ________________ is the quality dimension indicating that services result in the best care for a given cost or the lowest cost for a given level of care.

Options:

A.

Accessibility

B.

Effectiveness

C.

Acceptability

D.

Efficiency

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Questions 34

Many health plans use HRA to target their preventive care programs to the healthcare needs of their members. With regard to HRA, it is correct to say that

Options:

A.

Health plans rarely delegate HRA activities to external entities

B.

Health plans typically focus their HRA efforts on newly enrolled members

C.

HRA focuses on clinical data for an entire population and does not include demographic information that might identify individual members

D.

HRA is generally a reliable predictor of medical resource utilization

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Questions 35

The Fairview Health Plan uses a dual database approach to integrate information needed for its disease management program. This information indicates that Fairview uses an information management system that

Options:

A.

combines all existing information from all data sources into a single comprehensive system

B.

connects multiple databases with a central interface engine that acts as an information clearinghouse

C.

provides an outside vendor with pertinent data that the vendor compiles into an integrated database

D.

creates a separate database that pulls pertinent information from the health plan’s claims database, formats the information for easy analysis, and stores it in the separate database

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Questions 36

Determine whether the following statement is true or false:

Participation in disease management programs is currently voluntary.

Options:

A.

True

B.

False

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Questions 37

The following statements are about the use of hospitalists to manage inpatient care. Select the answer choice containing the correct statement.

Options:

A.

A patient who has been transferred to a hospitalist for management of inpatient care usually continues to receive care from the hospitalist after discharge.

B.

Hospitalists are used primarily to manage care for obstetric, pediatric, and oncology patients.

C.

In order to serve as a hospitalist, a physician must have a background in critical care medicine.

D.

Hospitalists typically spend at least one-quarter of their time in a hospital setting.

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Questions 38

The Glenway Health Plan’s pharmacy and therapeutics (P & T) committee conducted pharmacoeconomic research to measure both the clinical outcomes and costs of two new cholesterol-reducing drugs. Results were presented as a ratio showing the cost required to produce a 1 mcg/l decrease in cholesterol levels. The type of pharmacoeconomic research that Glenway conducted in this situation was most likely

Options:

A.

cost-effectiveness analysis (CEA)

B.

cost-minimization analysis (CMA)

C.

cost-utility analysis (CUA)

D.

cost of illness analysis (COI)

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Questions 39

One way that health plans can make their benefits more appealing to employers and employees is to offer coverage for specialty services. It is correct to say that specialty services typically

Options:

A.

involve the same types of providers and delivery systems as do standard medical services

B.

are a subset of a health plan’s standard medical-surgical services

C.

are not monitored by health plans for quality or utilization

D.

require specialized knowledge for service delivery and management

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Questions 40

Private employers are key purchasers of health plan services. The following statement(s) can correctly be made about employer expectations about the quality and cost-effectiveness of healthcare services:

1. For both health maintenance organizations (HMOs) and non-HMO plans, employers typically have access to accreditation results and performance measurement reports to help them evaluate the quality of healthcare and service

2. Because of employers’ concern about the quality and costs of healthcare services available through health plans, direct contracting has become a dominant model among employers who sponsor health benefit programs for their employees

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 41

Outcomes management is a tool that health plans use to maximize all the results associated with healthcare processes. The following statement(s) can correctly be made about outcomes management:

1. The goal of outcomes management is to identify and implement treatments that are cost-effective and deliver the greatest value

2. Outcomes management introduces performance as a critical factor in the assessment and improvement of outcomes

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 42

The Quality Assessment Performance Improvement (QAPI) is a quality initiative designed to strengthen health plans’ efforts to protect and improve the health and satisfaction of Medicare and Medicaid health plan enrollees. The Centers for Medicare and Medicaid Services (CMS) requires compliance with QAPI from

Options:

A.

both Medicare+Choice plans and Medicaid health plans

B.

Medicare+Choice plans only

C.

Medicaid health plans only

D.

neither Medicare+Choice plans nor Medicaid health plans

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Questions 43

One difference between outcomes research and clinical research is that outcomes research

Options:

A.

provides an absolute measure of treatment results, whereas clinical research provides a relative measure of results

B.

focuses on treatment effectiveness, whereas clinical research focuses on treatment efficacy

C.

examines diseases and treatments in isolation, whereas clinical research considers the effects of changes in health status and quality of life

D.

gathers outcomes data from controlled clinical trials, whereas clinical research collects and analyzes clinical, financial, and administrative data

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Questions 44

For this question, if answer choices (a) through (c) are all correct, select answer choice (d). Otherwise, select the one correct answer choice.

Well-crafted clinical practice guidelines (CPGs) can benefit healthcare delivery processes and outcomes by

Options:

A.

providing a framework for care while also allowing for patient-specific variations, based on physician judgment

B.

serving as a basis for evaluating whether providers are practicing in accordance with accepted standards

C.

focusing on the prevention or early detection of a particular condition

D.

all of the above

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Questions 45

Health plans often use accreditation as a means of evaluating the quality of care delivered to plan members. Accreditation of subacute care providers is available from the

Options:

A.

National Committee for Quality Assurance (NCQA)

B.

Joint Commission on Accreditation of Healthcare Organizations (JCAHO)

C.

American Accreditation HealthCare Commission/URAC (URAC)

D.

Foundation for Accountability (FACCT)

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Questions 46

The following statement(s) can correctly be made about medical management considerations for the Federal Employee Health Benefits Program (FEHBP):

1. FEHBP plan members who have exhausted the health plan’s usual appeals process for a disputed decision can request an independent review by the Office of Personnel Management (OPM)

2. All health plans that cover federal employees are required to develop and implement patient safety initiatives

Options:

A.

Both 1 and 2

B.

1 only

C.

2 only

D.

Neither 1 nor 2

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Questions 47

The Hall Health Plan gathered objective clinical information about the recommended uses and dosages of angiotensin-converting enzyme (ACE) inhibitors and presented the information to network providers to illustrate the appropriate use of these frequently prescribed and expensive drugs. This information indicates that Hall most likely educated its network providers through the use of

Options:

A.

detailing

B.

cognitive services

C.

counter detailing

D.

drug efficacy study implementation (DESI)

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Questions 48

The following statement(s) can correctly be made about the hospitalist approach to inpatient care management:

1. Management of inpatient care by hospitalists may significantly reduce the length of stay and the total costs of care for a hospital admission

2. Most health plans that use hospitalists do so through a voluntary hospitalist program

3. A hospitalist’s familiarity with utilization management (UM) and quality management (QM) standards for inpatient care may reduce unnecessary variations in care and improve clinical outcomes

Options:

A.

All of the above

B.

1 and 2 only

C.

1 and 3 only

D.

2 only

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Exam Code: AHM-540
Exam Name: Medical Management
Last Update: Apr 30, 2026
Questions: 163

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