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AHIP Exam AHM-520 Topic 6 Question 16 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 16
Topic #: 6
[All AHM-520 Questions]

The Norton Health Plan used blended rating to develop a premium rate for the Roswell Company, a large employer group. Norton assigned Roswell a credibility factor of 0.7 (or 70%). Norton calculated Roswell's manual rate to be $200 and its experience claims cost as $180. Norton's retention charge is $3. This information indicates that Roswell's blended rate is:

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Suggested Answer: B

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