AHIP Exam AHM-520 Topic 2 Question 84 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 84
Topic #: 2

In a comparison of small employer-employee groups to large employer-employee groups, it is correct to say that small employer-employee groups tend to:

AMore closely follow actuarial predictions with respect to morbidity rates

BGenerate more administrative expenses as a percentage of the total premium amount the group pays

CHave less frequent and smaller claims fluctuations

DExpose an health plan to a lower risk of anti selection

Show Suggested Answer

Suggested Answer: B

by Brittni at Apr 11, 2024, 08:58 PM

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Britt

2 days ago

I think small employer-employee groups tend to have less frequent and smaller claims fluctuations.

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You know, I was just reading an article about this very topic. It mentioned that small groups often have higher administrative costs as a percentage of total premium, so I'm going to go with option B.

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Kate

26 days ago

Okay, let's break this down. Small groups tend to have less predictable claims, so option A is probably not correct. And option C doesn't really align with the typical characteristics of small groups. I'd say B or D are the most likely answers here.

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Stevie

27 days ago

Ooh, this is a good one. I remember learning about this in my risk management course. I'm leaning towards option D, as smaller groups are more likely to experience adverse selection due to the smaller pool of people.

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Elza

28 days ago

Haha, this is a classic insurance exam question. They always try to trick you with these subtle differences between group sizes. I'd say option B is the way to go, but I'm open to hearing what the rest of you think.

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Melissa

1 months ago

Hmm, this is a tough one. I think the key here is to consider the inherent characteristics of small and large groups. Small groups may be more susceptible to claims fluctuations, but they might also have lower administrative expenses. Let me think about this a bit more.

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Maryrose

1 months ago

I'm not too sure about this question. The options seem a bit tricky, and I'm not entirely confident in my understanding of the differences between small and large employer-employee groups.

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AHIP Exam AHM-520 Topic 2 Question 84 Discussion

Contribute your Thoughts:

Britt

Santos

Kate

Stevie

Elza

Melissa

Maryrose