AHIP Exam AHM-520 Topic 5 Question 90 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 90
Topic #: 5

A product is often described as having a thin margin or a wide margin. With regard to the factors that help determine the size of the margin of a health plan's product, it can correctly be stated that the

Agreater the risk a health plan assumes in a health plan, the thinner the product margin should be

Bmore that competition acts to force prices down, the wider the product margins tend to become

Cgreater the demand for the product, the thinner the margin for this product tends to become

Dlonger the premium rates are guaranteed to a group, the wider the health plan's margin should be

Show Suggested Answer

Suggested Answer: B

by Art at Jun 22, 2024, 10:54 PM

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Gilma

2 months ago

I'm leaning towards option C. The greater the demand for the product, the more the health plan can afford to keep the margins thin. Simple supply and demand, right?

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Jacqueline

9 days ago

True, supply and demand definitely play a big role in setting product margins.

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Mireya

26 days ago

Competition can also play a role in determining margins. So, option B could be a factor too.

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Amos

1 months ago

I think option C makes sense. If there's high demand, they can afford to keep margins thin.

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Isaac

2 months ago

I disagree. I believe option D is the correct answer. The longer the premium rates are guaranteed, the wider the health plan's margin should be to account for that long-term commitment.

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