AHIP AHM-520

The AHM-520 exam has a reputation for tripping up even experienced professionals. Dumpkiller breaks the AHIP Health Plan Finance and Risk Management syllabus down into 215 practice questions with clear explanations, so tricky topics stop feeling intimidating.

AHIP AHM-520 Exam Overview:

AHIP AHM-520 Exam Syllabus Topics:

What Candidates Ask About the AHIP AHM-520 Exam

Can you give me an overview of the AHM-520 exam?

The AHIP Health Plan Finance and Risk Management exam (code: AHM-520) is the official AHIP exam that leads to the AHIP Certification certification. It sits at the Professional level of the AHIP certification track. It is also connected with related credentials such as AHM250 - Health Care Management: An Introduction, AHM510 - Governance, Legal Issues, Medicare & Medicaid, Managed Healthcare Professional (MHP) Designation. Passing it proves to employers that your skills have been validated by AHIP itself, which is why the AHM-520 credential keeps showing up in job postings.

Are there any prerequisites for the AHM-520 exam?

According to AHIP, the following applies: No formal prerequisite exam is generally required. The course is part of the AHIP Managed Healthcare Professional curriculum and is typically taken alongside other AHM courses toward the designation.. Certification policies do change from time to time, so confirm the latest requirements on the official exam page at https://www.ahip.org/courses/health-plan-finance-and-risk-management-ahm520 before you register.

Can I try the AHM-520 practice questions before buying?

Yes. Dumpkiller offers a free AHM-520 PDF demo so you can review the question style, difficulty, and explanations before committing to anything. After purchase, your AHIP Health Plan Finance and Risk Management material includes 365 days of free updates, and if your product expires after that, you can extend the update service at a 50% discount from your member zone.

What happens if I do not pass the AHM-520 exam, and how is my order delivered?

If you take the corresponding AHM-520 exam within 60 days of your purchase and do not pass, you can apply for a full refund under our 100% Money Back Guarantee, subject to a few conditions: the failed exam must be the one matching your purchase; sitting the exam within 3 days of purchase does not qualify, since that leaves too little preparation time; downloading the material without actually taking the exam does not qualify; free materials and expired orders are excluded; and the candidate name must match the payer name. To apply, send a scanned copy of your enrollment slip together with your official Score Report (PDF) within 2 days after the exam, and claims are processed within 7 days. If you would rather not take a refund, you can exchange your purchase for two free products of equal value while keeping the update service on the product you originally bought. As for delivery, everything is an instant download: your products are sent to your email within one minute of payment — contact customer service if nothing arrives within 2 hours — and there is no limit on the number of computers you can install the software on.

What topics are covered in the AHM-520 exam?

The official AHIP Health Plan Finance and Risk Management syllabus is organized into 7 main domains. The first three are Regulatory and Compliance Framework, Claims Analysis and Utilization Management, and Risk Assessment and Risk Management. For the full domain-by-domain breakdown, see the complete Exam Topics outline above.

AHIP Health Plan Finance and Risk Management Sample Questions:

Question #1
The following statements are about federal laws and regulations which affect health plans that offer products and services to the employer group market. Select the answer choice containing the correct statement.

A. The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 requires that, if a plan sponsor elects to terminate its group coverage with a health plan, then the health plan must continue its coverage for the COBRA-qualified beneficiaries in the group.
B. Amendments to the HMO Act of 1973 require federally qualified HMOs to adjust a group's prior premiums on the basis of the group's experience during the prior rating period.
C. The Mental Health Parity Act (MHPA) of 1996 mandates that all health plans must offer benefits for mental healthcare.
D. The Health Insurance Portability and Accountability Act (HIPAA) of 1996 generally requires the guaranteed renewal of healthcare coverage for certain individuals and for both small and large groups, regardless of the health status of any member.

Question #2
The Jasmine Company, which self funds the health plan for its 200 employees, has established a 501(c)(9) trust as a means of addressing possible claims fluctuations under the health plan. Thisplan is not a part of a collective bargaining process. A potential disadvantage to Jasmine of using a 501(c)(9) trust is that

A. The trust must always maintain enough assets to pay the health plan's claims that have been incurred but not yet paid
B. Jasmine is prohibited from earning any return on the trust assets
C. The cost of maintaining the trust may be prohibitive to Jasmine
D. The contributions to this trust are not deductible for federal income tax purposes

Question #3
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The following information relates to the Hardcastle Health Plan for the month of June:
Incurred claims (paid and IBNR) equal $100,000
Earned premiums equal $120,000
Paid claims, excluding IBNR, equal $80,000
Total health plan expenses equal $300,000
This information indicates that Hardcastle's medical loss ratio (MLR) for the month of June was approximately equal to:

A. 40%
B. 120%
C. 83%
D. 67%

Question #4
The Norton Health Plan used blended rating to develop a premium rate for the Roswell Company, a large employer group. Norton assigned Roswell a credibility factor of 0.7 (or 70%). Norton calculated Roswell's manual rate to be $200 and its experience claims cost as $180. Norton's retention charge is $3. This information indicates that Roswell's blended rate is:

A. $197
B. $194
C. $186
D. $189

Question #5
In order to print all of its forms in-house, the Prism health plan is considering the purchase of 10 new printers at a total cost of $30,000. Prism estimates that the proposed printers have a useful life of 5 years. Under its current system, Prism spends $10,000 a year to have forms printed by a local printing company. Assume that Prism selects a 15% discount rate based on its weighted-average costs of capital. The cash inflows for each year, discounted to their present value, are shown in the following chart:

Prism will use both the payback method and the discounted payback methodto analyze the worthiness of this potential capital investment. Prism's decisionrule is to accept all proposed capital projects that have payback periods offour years or less.
After analyzing this information, Prism would accept this proposed capitalproject under

A. Both the payback method and the discounted payback method
B. The discounted payback method but not the payback method
C. Neither the payback method nor the discounted payback method
D. The payback method but not the discounted payback method

Solutions: