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

Limited Time Offer

25%

Off

Get Premium AHM-520 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Latia

5 months ago

I think small groups might actually generate more administrative expenses as a percentage of the total premium amount.

upvoted 0 times

...

Elza

5 months ago

I see your point, It's important to consider the risk of anti-selection as well.

upvoted 0 times

...

Shaun

5 months ago

But don't you think that small groups might also expose health plans to a higher risk of anti-selection?

upvoted 0 times

...

Jeffrey

5 months ago

I agree with small groups are better at managing claims fluctuations.

upvoted 0 times

...

Elza

5 months ago

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

upvoted 0 times

...

Catrice

5 months ago

That's interesting, Mozell. I didn't consider the administrative expenses aspect.

upvoted 0 times

...

Mozell

5 months ago

I believe small employer-employee groups tend to generate more administrative expenses as a percentage of the total premium amount they pay.

upvoted 0 times

...

Britt

6 months ago

I'm not sure about that. I think smaller groups may actually have lower risk of anti-selection.

upvoted 0 times

...

Mira

6 months ago

But don't small groups also expose health plans to a higher risk of anti-selection?

upvoted 0 times

...

Catrice

6 months ago

I agree with Britt. Smaller groups are more stable when it comes to claims.

upvoted 0 times

...

Britt

7 months ago

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

upvoted 0 times

...

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.

upvoted 0 times

Hayley

6 months ago

So, small groups expose a health plan to a lower risk of anti-selection. Makes sense.

upvoted 0 times

...

Ernestine

6 months ago

I suppose that would mean they have less frequent and smaller claims fluctuations.

upvoted 0 times

...

Veda

6 months ago

Yeah, I read that too. It makes sense, so I agree with option B.

upvoted 0 times

...

Aileen

6 months ago

I think small groups tend to generate more administrative expenses as a percentage of the total premium amount.

upvoted 0 times

...

Kate

8 months 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.

upvoted 0 times

...

Stevie

8 months 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.

upvoted 0 times

...

Elza

8 months 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.

upvoted 0 times

...

Melissa

8 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.

upvoted 0 times

...

Maryrose

8 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.

upvoted 0 times

...

AHIP Exam AHM-520 Topic 2 Question 84 Discussion

Contribute your Thoughts:

Latia

Elza

Shaun

Jeffrey

Elza

Catrice

Mozell

Britt

Mira

Catrice

Britt

Santos

Hayley

Ernestine

Veda

Aileen

Kate

Stevie

Elza

Melissa

Maryrose