AHIP Exam AHM-520 Topic 5 Question 81 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 81
Topic #: 5

The following information was presented on one of the financial statements prepared by the Rouge health plan as of December 31, 1998:

When calculating its cash-to-claims payable ratio, Rouge would correctly divide its:

ACash by its reported claims only

BCash by its reported claims and its incurred but not reported claims (IBNR)

CReported claims by its cash

DReported claims and its incurred but not reported claims (IBNR) by its cash

Show Suggested Answer

Suggested Answer: B

by Mozell at Feb 13, 2024, 10:17 AM

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7 months ago

I would go with D) Reported claims and its IBNR by its cash, as it seems more logical to me.

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7 months ago

I'm not sure about that. Maybe A) Cash by its reported claims only is the correct option?

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7 months ago

I also agree with B, because IBNR should be included in the calculation.

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7 months ago

I think the correct answer is B) Cash by its reported claims and its incurred but not reported claims (IBNR).

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