AHIP Exam AHM-520 Topic 4 Question 100 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 100
Topic #: 4

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 Valentin at Sep 17, 2024, 01:48 PM

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Nancey

2 months ago

Option C makes the most sense to me. Small groups tend to have more volatile claims experience due to their smaller size.

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Doyle

24 days ago

C) Have less frequent and smaller claims fluctuations

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Nana

25 days ago

B) Generate more administrative expenses as a percentage of the total premium amount the group pays

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Wenona

1 months ago

A) More closely follow actuarial predictions with respect to morbidity rates

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Judy

3 months ago

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

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Kaitlyn

3 months ago

I agree with Izetta. Small groups are more stable in terms of claims.

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Izetta

3 months ago

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

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Linn

3 months ago

Haha, small groups are like a group of friends trying to figure out insurance - more like a comedy show than actuarial predictions!

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Isaac

3 months ago

I disagree, I believe option D is the right answer. Small groups are more susceptible to anti-selection, which can expose the health plan to higher risk.

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