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• Explain the meaning of network management and list some of the activities that are typically included in this
function
• Describe the role of a network management director, a contracting specialist, and a provider relations representative
in network management
• Define profiling and explain its significance in network management
• Describe some training and support approaches that health plan organizations (health plans) use to improve the
performance of network management staff
• Explain the relationship between network management and medical management, risk management, member
services, and claims administration
Instructions:
network management
quality
cost-effectiveness
accessibility
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One important activity within the scope of network management is ensuring question
the quality of the health plan’s provider networks. A primary purpose of 4.
__________________ is to review the clinical competence of a provider in
order to determine whether the provider meets the health plan’s
preestablished criteria for participation in the network.
authorization
provider relations
credentialing
utilization management
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4. One important aspect of network management is profiling, or provider
question
profiling. Profiling is most often used to 5.
measure the overall performance of providers who are already
participants in the network
assess a provider’s overall satisfaction with a plan’s service protocols and
other operational areas
verify a prospective provider’s professional licenses, certifications, and
training
familiarize a provider with a plan’s procedures for authorizations and
referrals
1 D
2 B
3 C
4 A
5 D
Reading 1B: Environmental Considerations for Network Management
• Understand the numerous legislative and regulatory requirements that affect network management
• Identify the expectations of purchasers and consumers with respect to network management
• Describe how health plans balance complex and sometimes competing interests and requirements in managing
provider panels
Instructions:
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Regulation 1: Mosaic must establish a mandated grievance resolution
question
mechanism, including a method for members to address grievances with 3.
network providers.
Regulation 2: Mosaic must not allow its providers to refer Medicare and
Medicaid patients toentities in which they have a financial or ownership
interest.
From the answer choices below, select the response that correctly identifies
the federal legislation on which Regulation 1 and Regulation 2 are based.
Regulation 1 - The Ethics in Patient Referrals Act Regulation 2 -
The HMO Act of 1973
Regulation 1 - The HMO Act of 1973 Regulation 2 - The Ethics in
Patient Referrals Act
Regulation 1 - ERISA Regulation 2 - The Federal Trade Commission
Act
Regulation 1 - The Federal Trade Commission Act Regulation 2 -
ERISA
4. After HIPAA was enacted, Congress amended the law to include the Mental Go to
Health Parity Act (MHPA) of 1996, a federal requirement relating to mental question
health benefits. One true statement about the MHPA is that it 5.
requires all health plans to provide coverage for mental health services
requires health plans to carve out mental/behavioral healthcare from
other services provided by the plans
allows health plans to require patients receiving mental health services
to pay higher copayments than patients seeking treatment for physical
illnesses
prohibits health plans that offer mental health benefits from applying
more restrictive limits on coverage for mental illness than on coverage
for physical illness
5. From the following answer choices, choose the term that best matches the
description.
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An integrated delivery system (IDS), which controls most providers in a question
6.
particular specialty, agrees to provide that specialty service to a health plan
only on the condition that the health plan agree to contract with the IDS for
other services.
Group boycott
Horizontal division of territories
Tying arrangements
Concerted refusal to admit
6. From the following answer choices, choose the term that best matches the Go to
question
description.
7.
7. Some states have enacted any willing provider laws. From the perspective Go to
of the health plan industry, one drawback of any willing provider laws is that question
they often result in a reduction of a plan’s 8.
premium rates
ability to monitor utilization
number of primary care providers (PCPs)
number of specialists and ancillary providers
11. The following statement(s) can correctly be made about the TRICARE
managed healthcare program of the U.S. Department of Defense.
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1. Active-duty military personnel are automatically enrolled in TRICARE’s Top
HMO option (TRICARE Prime).
2. Eligible family members and dependents can enroll in TRICARE Prime, the
PPO plan (TRICARE Extra), or an indemnity plan (TRICARE Standard).
Both 1 and 2
1 only
2 only
Neither 1 nor 2
1 C
2 B
3 C
4 D
5 C
6 A
7 B
8 B
9 C
10 C
11 A
Assignment 2: Strategies for Network Development and Management
• Explain how the presence of provider organizations and the level of market maturity affect network strategies
• Explain how a health plan can use a competitive analysis to determine the size of the network
• Describe some differences between network needs for large employers and needs for small employers
• Describe some of the challenges that health plans face when developing networks in rural areas
• List several different areas for which a health plan should establish goals before beginning to develop or revise a
provider network
Instructions:
3. The sizes of the businesses in a market affect the types of health programs
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that are likely to be purchased. Compared to smaller employers (those with
question
fewer than 100 employees), larger employers (those with more than 1,000 4.
employees) are
more likely to contract with indemnity health plans
more likely to offer their employees a choice in health plans
less likely to contract with health plans
less likely to require a wide variety of benefits
5. The following statements are about factors that health plans should
Go to
consider as they develop provider networks in rural and urban markets.
question
Three of the statements are true, and one of the statements is false. Select 6.
the answer choice that contains the FALSE statement.
Compared to providers in urban areas, providers in rural areas are less
likely to offer discounts to health plans in exchange for directed patient
volume.
In urban areas, limiting the number of specialists on a panel usually
affects the network’s market appeal more than does limiting the number
of primary care physicians.
The greatest opportunity to create competition in rural areas is among
the specialty providers in other nearby communities.
Typically, hospital contracting is easier in urban areas than in rural
areas.
1 A
2 A
3 B
4 D
5 B
6 C
7 C
8 D
Reading 2B: Considerations for the Structure, Composition, and Size of the Network
• Explain how a network-within-a-network approach can benefit a health plan with more than one product in a market
• Explain the difference between primary care HMOs and open access HMOs
• List several sources of laws, regulations, or guidelines on network access and adequacy
• Explain how a tiered network helps a health plan address the cost-access trade-off that health plans typically
encounter when setting the size of the provider panel
• Describe the "build or buy" decision for networks and list some reasons why a health plan might lease a network or
outsource development of a network
Instructions:
2. The Gardenia Health Plan has a national reputation for quality care. When
Gardenia entered a new market, it established a preferred provider
organization (PPO), a health maintenance organization (HMO), and a point-
of-service product (POS) to serve the plan members in this market. All of the
providers included in the HMO or the POS are included in the broader
provider panel of the PPO. The POS will be a typical two-level POS that offers
a cost-based incentive plans for PCPs, and the HMO is a typical staff model
HMO.
3. The Gardenia Health Plan has a national reputation for quality care. When
Gardenia entered a new market, it established a preferred provider
organization (PPO), a health maintenance organization (HMO), and a point-
of-service product (POS) to serve the plan members in this market. All of the
providers included in the HMO or the POS are included in the broader Go to
provider panel of the PPO. The POS will be a typical two-level POS that offers question
a cost-based incentive plans for PCPs, and the HMO is a typical staff model 4.
HMO.
One statement that can correctly be made about Gardenia’s two-level POS
product is that
members who self-refer without first seeing their PCPs will receive no
benefits
both Gardenia and the PCPs stand to benefit if the non-provider panels
are kept relatively narrow
members will pay higher coinsurance or copayments if they first see
their PCPs each time
the plan offers no financial incentives to members to choose an in-
network specialist over a non-network specialist
Instructions:
3. The Brice Health Plan submitted to Clarity Health Services a letter of intent
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indicating Brice’s desire to delegate its demand management function to Top
Clarity. One true statement about this letter of intent is that it
creates a legally binding relationship between Brice and Clarity
most likely contains a confidentiality clause committing Brice and Clarity
to maintain the confidentiality of documents reviewed and exchanged in
the process
prohibits Clarity from performing similar delegation activities for other
health plans
most likely contains a detailed description of the functions that Brice will
delegate to Clarity
Reading 3A: Identifying and Recruiting Providers for a Health Plan Network
• List and describe the types of providers included in the most managed care networks
• Discuss the factors that a health plan considers when identifying potential network hospitals and practitioners
• Explain the advantages and disadvantages of health plan contracting with individual practitioners and provider
organizations
• Discuss the methods that health plans may use to recruit candidates for their provider networks
Instructions:
2. In contracting with providers, a health plan can use a closed panel or open Go to
panel approach. One statement that can correctly be made about an open question
panel health plan is that the participating providers 3.
2. The hospitalist’s role clearly supports the health plan concept of disease
management.
Both 1 and 2
1 only
2 only
Neither 1 nor 2
5. Salvatore Arris is a member of the Crescent Health Plan, which provides its
members with a full range of medical services through its provider network.
After suffering from debilitating headaches for several days, Mr. Arris made
an appointment to see Neal Prater, a physician’s assistant in the Crescent
network who provides primary care under the supervision of physician Dr.
Go to
Anne Hunt. Mr. Prater referred Mr. Arris to Dr. Ginger Chen, an
question
ophthalmologist, who determined that Mr. Arris’ symptoms were indicative of 6.
migraine headaches. Dr. Chen prescribed medicine for Mr. Arris, and Mr. Arris
had the prescription filled at a pharmacy with which Crescent has contracted.
The pharmacist, Steven Tucker, advised Mr. Arris to take the medicine with
food or milk. In this situation, the person who functioned as an ancillary
service provider is
Mr. Prater
Dr. Hunt
Dr. Chen
Mr. Tucker
6. Open panel health plans can contract with individual providers or with
various provider groups when developing their networks. The following Go to
statements are about factors that an open panel health plan might consider question
in contracting with different types of provider organizations. Select the 7.
answer choice that contains the correct statement.
One limitation of contracting with multispecialty groups is that a health
plan obtains only specialty consultants, but not PCPs.
One benefit to a health plan in contracting with an integrated delivery
system (IDS) is the ability to have a network in rapid order and to enter
into a new market or one that is already competitive.
A health plan that contracts with an individual practice association (IPA)
has a greater ability to select and deselect individual physicians than
when contracting directly with the providers.
A health plan that contracts with an IDS is able to eliminate the antitrust
risk that exists when contracting with an IPA.
7. Health plans use a variety of sources to find candidates to recruit for their
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provider networks. In general, two of the most effective methods of finding Top
candidates are through
word of mouth and on-site training programs
word of mouth and direct mail
advertisements in local newspapers and on-site training programs
advertisements in local newspapers and direct mail
• Explain the data collection and verification processes used in credentialing and describe their importance to a health
plan's selection of network physicians
• Describe the role played in data collection and verification by:
• American Board of Medical Specialties (ABMS)
• Federation of State medical Boards
• National Practitioner Data Bank (NPDB)
• Healthcare Integrity and Protection Data Bank (HIPDB)
• provider profiling
• Explain the liability issues involved with credentialing decisions, including: requirements of the Americans with
Disabilities Act (ADA), confidentiality, vicarious liability, violation of due process, and negligent credentialing
• Describe how and why health plans delegate credentials verification to third parties
• Describe the data collection and verification services provided by hospitals and medical facilities, Physician
Organization Certification (POC) program, and credentials verification organizations (CVOs)
Instructions:
2. The Festival Health Plan is in the process of recruiting physicians for its Go to
question
provider network. Festival requires its network physicians to be board
3.
certified. The following individuals are provider applicants whose
qualifications are being considered:
Applicant 3 completed his residency in pediatric medicine six years ago, but
he has not yet passed a qualifying examination in his field.
Action 2—Justice reprimanded a PCP in its network for failing to follow the
health plan’s referral procedures. Go to
question
4.
Action 3—Justice suspended a physician’s clinical privileges throughout the
Justice network because the physician’s conduct adversely affected the
welfare of a patient.
Action 4—Justice censured a physician for advertising practices that were not
aligned with Justice’s marketing philosophy.
Of these actions, the ones that Justice most likely must report to the NPDB
include Actions
1, 2, and 3 only
1 and 3 only
2 and 4 only
3 and 4 only
4. The NPDB specifies the entities that are eligible to request information
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from the data bank, as well as the conditions under which requests are
question
allowed. In general, entities that are eligible to request information from the 5.
NPDB include
medical malpractice insurers and the general public
medical malpractice insurers and professional societies that are
screening applicants for membership
the general public and state licensing boards
state licensing boards and professional societies that are screening
applicants for membership
5. Participating providers in a health plan’s network must undergo Go to
recredentialing on a regular basis. During recredentialing, a health plan question
typically reviews 6.
6. With respect to hiring practices, one step that a health plan most likely can Go to
take to avoid violating the terms of the Americans with Disabilities Act (ADA) question
is to 7.
Go to
The NCQA has established a Physician Organization Certification (POC) question
program for the purpose of certifying medical groups and independent 8.
practice associations for delegation of certain NCQA standards, including data
collection and verification for credentialing and recredentialing.
True
False
8. For this question, if answer choices (A) through (C) are all correct, select
answer choice (D). Otherwise, select the one correct answer choice. A Back to
credentials verification organization (CVO) can be certified to verify certain Top
pertinent credentialing information, including
liability claims histories of prospective providers
hospital privileges of prospective providers
malpractice insurance on prospective providers
all of the above
• Explain why health plans enter into legal contracts with providers
• Describe the essentials elements of a contractual relationship
• Identify the differences and similarities between a comprehensive and a brief provider contract
• Describe the major elements in a comprehensive contract
• Discuss the goals that a health plan may try to reach through its contractual strategies
Instructions:
3. When the Rialto Health Plan determines which of the emergency services
received by its plan members should be covered by the health plan, it is
guided by a standard which describes emergencies as medical conditions
manifesting themselves by acute symptoms of sufficient severity (including Go to
severe pain) such that a person who possesses an average knowledge of question
health and medicine could reasonably expect the absence of immediate 4.
medical attention to result in placing the health of the individual in serious
jeopardy. This standard, which was adopted by the NAIC in 1996, is referred
to as the
medical necessity standard
prudent layperson standard
“all-or-none” standard
reasonable and customary standard
4. The provider contract between the Ocelot Health Plan and Dr. Enos Zorn,
one of the health plan’s participating providers, is a brief contract which
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includes, by reference, an Ocelot provider manual. This manual contains
question
much of the information found in Ocelot’s comprehensive provider contracts. 5.
The following statements are about Dr. Zorn’s provider contract. Select the
answer choice containing the correct statement.
All statements in the provider contract shall be deemed to be warranties,
because all statements of facts contained in the contract must be true
only in those respects material to the contract.
Because the provider manual is part of the contract, Ocelot must make
sure that its provider manual is comprehensive and up-to-date.
Because the provider contract is a brief contract, Ocelot most likely is
prohibited from amending the contract unilaterally, even if it gives Dr.
Zorn advance notice of its intent to amend the contract.
Areas that should be covered in the provider manual, and not in the
body of the contract, include any specific legal issues relevant to the
contract.
7. Dr. Eve Barlow is a specialist in the Amity Health Plan’s provider network.
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Dr. Barlow’s provider contract with Amity contains a typical most-favored- Top
nation arrangement. The purpose of this arrangement is to
require Dr. Barlow and Amity to use arbitration to resolve any disputes
regarding the contract
specify that the contract is to be governed by the laws of the state in
which Amity has its headquarters
require Dr. Barlow to charge Amity her lowest rate for a medical service
she has provided to an Amity plan member, even if the rate is lower
than the price negotiated in the contract
state that the contract creates an employment or agency relationship,
rather than an independent contractor relationship, between Dr. Barlow
and Amity
Instructions:
True
False
Reading 5A: Responsibilities of health plans and Providers Under Provider Contracts
• Describe a low-enrollment guarantee clause and explain how health plans use low-enrollment guarantee clauses in
capitated contracts
• Explain two situations in which health plans modify existing provider contracts and two methods of modification
• Describe the issues about physician/patient communication that may be of concern to providers
• List several reasons why a contract with a primary care provider should describe the scope of service in detail
• List and describe three types of termination clauses
• Explain the role of the due process clause in the termination of providers
Instructions:
2. From the following answer choices, choose the type of clause or provision
described in this situation.
Go to
question
The Idlewilde Health Plan includes in its provider contracts a clause or 3.
provision that allows the terms of the contract to renew unchanged each
year.
Cure provision
Hold-harmless provision
evergreen clause
Exculpation clause
3. From the following answer choices, choose the type of clause or provision Go to
question
described in this situation.
4.
The provider contract between Dr. Olin Norquist and the Granite Health Plan
specifies a time period for the party who has breached the contract to
remedy the problem and avoid termination of the contract.
Cure provision
Hold-harmless provision
Evergreen clause
Exculpation clause
4. From the following answer choices, choose the type of clause or provision
described in this situation.
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question
The Aviary Health Plan includes in its provider contracts a clause or provision 5.
that places the ultimate responsibility for an Aviary plan member’s medical
care on the provider.
Cure provision
Hold-harmless provision
Evergreen clause
Exculpation clause
5. The following statements are about the responsibilities that providers are Go to
expected to assume under most provider contracts with health plans. Select question
the answer choice containing the correct statement. 6.
All health plans now include in their provider contracts a statement that
explicitly places responsibility for the medical care of plan members on
the health plan rather than on the provider.
According to the wording of most provider contracts, the responsibility of
providers to deliver medical services to a plan member is not contingent
upon the provider’s receipt of information regarding the member’s
eligibility for these services.
Most health plans include in their provider contracts a clause which
requires providers to maintain open communication with plan members
regarding appropriate treatment plans, even if the services are not
covered by the member’s health plan.
Most provider contracts require participating providers to discuss health
plan payment arrangements with patients who are covered by the plan.
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6. With respect to contractual provisions related to provider-patient
question
communications, nonsolicitation clauses prohibit providers from 7.
B. Dr. Kwan most likely was paid on a FFS basis for providing this
service.
Both A and B
A only
B only
Neither A nor B
agree not to sue or file claims against an Octagon plan member for
covered services
reimburse Octagon for costs, expenses, and liabilities incurred by the
health plan as a result of a provider’s actions
maintain the confidentiality of the health plan’s proprietary information
agree to accept Octagon’s payment as payment in full and not to bill
members for anything other than contracted copayments, coinsurance,
or deductibles
10. The provider contract between the Regal Health Plan and Dr. Caroline
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Quill contains a type of termination clause known as termination without Top
cause. One true statement about this clause is that it
requires Regal to send a report to the appropriate accrediting agency if
the health plan terminates Dr. Quill’s contract without cause
requires that Regal must base its decision to terminate Dr. Quill’s
contract on clinical criteria only
allows either Regal or Dr. Quill to terminate the contract at any time,
without any obligation to provide a reason for the termination or to offer
an appeals process
allows Regal to terminate Dr. Quill’s contract at the time of contract
renewal only, without any obligation to provide a reason for the
termination or to offer an appeals process
• Explain how an MCO transfers financial risk to providers through reimbursement arrangements
• Describe the primary advantages and disadvantages of fee-for-service, salary, and capitation payment systems
• List and describe four types of capitation
• Explain how health plans use incentives in compensation arrangements
• List and describe four ways to manage a provider's financial risk
• Describe some factors that influence the way a health plan compensates its providers
Instructions:
3. One type of fee schedule payment system assigns a weighted unit value
for each medical procedure or service based on the cost and intensity of that Go to
service. Under this system, the unit values for procedural services are question
generally higher than the unit values for cognitive services. This system is 4.
known as a
wrap-around payment system
relative value scale (RVS) payment system
resource-based relative value scale (RBRVS) system
capped fee system
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4. One true statement about the compensation arrangement known as the
question
case rate system is that, under this system, 5.
providers stand to gain or lose based on the number and types of
treatments used for each case
providers have no incentives to take an active role in managing cost and
utilization
payors cannot adjust standard case rates to reflect the severity of the
patient’s condition or complications that arise from multiple medical
problems
payors have the opportunity to benefit from the provider’s cost savings
Go to
6. An health plan enters into a professional services capitation arrangement
question
whenever the health plan 7.
contracts with a medical group, clinic, or multispecialty IPA that assumes
responsibility for the costs of all physician services related to a patient’s
care
pays individual specialists to provide only radiology services to all plan
members
transfers all financial risk for healthcare services to a provider
organization and the provider, in turn, covers virtually all of a patient’s
medical expenses
contracts with a primary care provider to cover primary care services
only
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7. The following statements are about incentive programs used for providers.
question
Select the answer choice containing the correct statement. 8.
Risk pools based on aggregate provider performance eliminate problems
associated with “free riders.”
A hospital bonus pool is usually split between the health plan and the
PCPs.
Bonus pools based on the performance of specific providers are usually
easier to administer than those based on the performance of the plan as
a whole.
For providers, withhold arrangements eliminate the risk of losing base
income.
• The Apex Health Plan carves out immunizations from PCP capitations.
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Apex compensates PCPs for immunizations on a case rate basis.
question
• The Bengal Health Plan carves out behavioral healthcare services from 9.
the scope of PCP services because these services require specialized
knowledge and skills that most PCPs do not possess.
From the answer choices below, select the response that best identifies the
types of carve-outs used by Apex and Bengal.
Apex: disease-specific carve-out
Bengal: specialty services carve-out
Apex: disease-specific carve-out
Bengal: specific-service carve-out
Apex: specific-service carve-out
Bengal: specialty services carve-out
Apex: specific-service carve-out
Bengal: disease-specific carve-out
9. The Athena Medical Group has purchased from the Corinthian Insurance
Company individual stop-loss insurance coverage for primary and specialty
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care services with a $5,000 attachment point and 10 percent coinsurance.
question
One of Athena’s patients accrued $8,000 of medical costs for primary and 10.
specialty care treatment. In this situation, Athena will be responsible for
paying an amount equal to
$300, and Corinthian is obligated to reimburse Athena in the amount of
$2,700
$2,700, and Corinthian is obligated to reimburse Athena in the amount
of $5,300
$5,300, and Corinthian is obligated to reimburse Athena in the amount
of $2,700
$7,700, and Corinthian is obligated to reimburse Athena in the amount
of $300
10. The Ionic Group, a provider group with 10,000 plan members, purchased
for its hospital risk pool aggregate stop-loss insurance with a threshold of
110% of projected costs and a 10% coinsurance provision. Ionic funds the
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hospital risk pool at $40 per member per month (PMPM). If Ionic’s actual Top
hospital costs are $5,580,000 for the year, then, under the aggregate stop-
loss agreement, the stop-loss insurer is responsible for reimbursing Ionic in
the amount of
$30,000
$270,000
$300,000
$702,000
Reading 6A: Strategies for the Specialist Component of the Provider Network
• Describe some of the challenges health plans face when contracting with hospital-based specialists
• Describe the different reimbursement options that health plans typically use for specialists
• Discuss some common problems that health plans encounter when using capitation for specialty care
Instructions:
2. The method that the Autumn Health Plan uses for reimbursing Go to
question
dermatologists in its provider network involves paying them out of a fixed
3.
pool of funds that is actuarially determined for this specialty. The amount of
funds that Autumn allocates to dermatologists is based on utilization and
costs of services for that discipline.
an academic practitioner
an independent practitioner
a network manager
a hospital-based specialist
5. If the Oconee Health Plan reimburses its specialty care physicians (SCPs) Back to
under a typical retainer method, then Oconee pays SCPs Top
a separate amount for each service provided, and the payment amount
is based solely on a resource-based relative value scale (RBRVS)
a specified fee that remains the same regardless of how much or how
little time or effort is spent on the medical service performed
a set amount each month, and Oconee reconciles its payment at periodic
intervals on the basis of actual utilization
a set amount of cash equivalent to a defined time period’s expected
reimbursable charges
Instructions:
Go to
2. Four types of APCs are ancillary APCs, medical APCs, significant procedure
question
APCs, and surgical APCs. An example of a type of APC known as 3.
3. The Gladspell HMO has contracted with the Ellysium Hospital to provide
subacute care to its plan members. Gladspell pays Ellysium by using a per Go to
diem reimbursement method. question
4.
The per diem reimbursement method will require Gladspell to pay Ellysium a
fixed rate for each day a plan member is treated in Ellysium’s subacute
care facility
discounted charge for all subacute care services given by Ellysium
rate that varies depending on patient category
fixed rate per enrollee per month
4. The Gladspell HMO has contracted with the Ellysium Hospital to provide
subacute care to its plan members. Gladspell pays Ellysium by using a per
diem reimbursement method. Go to
question
5.
If Gladspell’s per diem contract with Ellysium is typical, then the per diem
payment will cover such medical costs as
laboratory tests
respiratory therapy
semiprivate room and board
radiology services
5. The Gladspell HMO has contracted with the Ellysium Hospital to provide
subacute care to its plan members. Gladspell pays Ellysium by using a per
diem reimbursement method.
Back to
Top
If the Ellysium subacute care unit is typical of most hospital-based subacute
skilled nursing units, then this unit could be used for patients who no longer
need to be in the hospital’s acute care unit but who still require
daily medical care and monitoring
regular rehabilitative therapy
respiratory therapy
all of the above
• Describe the advantages early pharmacy networks had over direct pay and cost-sharing pharmacy systems
• Identify the features that distinguish pharmacy networks from other health plan networks
• Describe the impact of pharmacy benefits management in managed care
• Explain the advantages and disadvantages of maintaining in-house management of pharmacy benefits or
outsourcing benefits through a pharmacy benefit management company (PBM)
• Describe the options available for delivering pharmacy services
• Identify the methods that health plans and PBMs use to reimburse network pharmacies
Instructions:
AWPs tend to vary widely from region to region of the United States
the AWP is often substantially higher than the actual price the pharmacy
pays for prescription drugs
a health plan’s contracted reimbursement to a pharmacy for prescription
drugs is typically the AWP plus a percentage, such as 5%
the AWP usually is lower than the estimated acquisition cost (EAC) for
most prescription drugs
A formulary lists the drugs and treatment protocols that are considered to be
the preferred therapy for a given managed population. The Fairfax Health
Plan uses the type of formulary which covers drugs that are on its preferred
list as well as drugs that are not on its preferred list. This information
indicates that Fairfax uses the (closed / open) formulary method. In using the
formulary approach to pharmacy benefits management, Fairfax most likely
experiences (higher / lower) costs for its members’ prescription drugs than it
would if it did not use a formulary.
closed / higher
closed / lower
open / higher
open / lower
5. The following statements can correctly be made about the advantages and Go to
disadvantages to an health plan of using the various delivery options for question
pharmacy services. 6.
• Explain some of the different carve-out arrangements that an MCO may use to arrange access to specialty services
• Describe the criteria a health plan uses to select a sole-source provider for specialty services
• Explain how the role of the PCP in behavioral healthcare varies among health plans
• Explain health plan's options for arranging access to clinical eye care and routine eye care
• Distinguish between ophthalmologists, optometrists, opticians
• List some reasons health plans often find the development and management of alternative healthcare networks to be
challenging
• List some ways in which a home healthcare agency can prepare itself to accept capitated contracts
Instructions:
As part of its credentialing process, Omni would like to verify that each of
these providers has met NCQA’s accreditation standards. However, with
regard to these three specialty service providers, an NCQA accreditation
program currently exists for
Apex and Baxter only
Apex and Cheshire only
Baxter and Cheshire only
Baxter only
2. Many health plans opt to carve out behavioral healthcare (BH) services. Go to
However, one argument against carving out BH services is that this action question
most likely can result in 3.
3. The following statements are about managed dental care. Three of these Go to
statements are true, and one is false. Select the answer choice containing the question
FALSE statement. 4.
Managed dental care is federally regulated.
Dental HMOs typically need very few healthcare facilities because almost
all dental services are delivered in an ambulatory care setting.
Currently, there are no nationally recognized standards for quality in
managed dental care.
Processes for selecting dental care providers vary greatly according to
state regulations on managed dental care networks and the health plan’s
standards.
4. Jay Mercer is covered under his health plan’s vision care plan, which
Go to
includes coverage for clinical eye care but not for routine eye care. Recently,
question
Mr. Mercer had a general eye examination and got a prescription for 5.
corrective lenses. Mr. Mercer’s vision care plan will cover.
both the general eye examination and the prescription for corrective
lenses
the general eye examination only
the prescription for corrective lenses only
neither the general eye examination nor the prescription for corrective
lenses
6. The provider contract that the Danube Health Plan has with the Viola Home Back to
Top
Health Services Organization states that Danube will use a typical flat rate
reimbursement arrangement to compensate Viola for the skilled nursing
services it provides to Danube’s plan members. A portion of the contract’s
reimbursement schedule is shown below:
• Home Health Licensed Practical Nurse (LPN): $45 per visit or $90 per
diem
• Home Health Registered Nurse (RN): $50 per visit or $110 per diem
Last month, an LPN from Viola visited a Danube plan member and provided
1½ hours of home healthcare, and an RN from Viola visited another Danube
plan member and provided 7 hours of home healthcare. The following
statement(s) can correctly be made about Danube’s payment to Viola for
these services:
A. Danube most likely owes $90 for the LPN’s skilled nursing services and
$110 for the RN’s skilled nursing services.
• Identify federal legislation that has affected the Medicare program and describe its impact on Medicare health plan
• List the three types of health plans that are authorized to apply for Medicare contracts under the Medicare + Choice
programs, and identify the two types of health plans that are allowed to establish closed networks of providers
• Describe the steps that Medicare + Choice health plans must take to ensure that network services are available and
accessible to enrollees
• Describe the restrictions on the use of physician incentive plans by Medicare + Choice health plans
• Discuss several other HCFA regulations affecting the relationship between Medicare + Choice health plans and
network providers
• Discuss some special needs of Medicare beneficiaries that health plans should consider when establishing Medicare
networks
Instructions:
2. The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 allowed
Go to
competitive medical plans (CMPs) to participate in the Medicare program on a
question
risk basis. Under the terms of Medicare risk contracts, CMPs were required to 3.
deliver all medically necessary Medicare-covered services in return for a
fixed monthly capitation payment from CMS
fee-for-service payment from the appropriate state Medicare agency
mandatory premium paid by plan enrollees
fee equal to twice the actuarial value of the Medicare deductible and
coinsurance paid by plan enrollees
5. The BBA of 1997 specifies the ways in which a Medicare+Choice plan can Go to
establish and use provider networks. A Medicare+Choice plan that operates question
as a private fee for service (PFFS) plan is allowed to 6.
allow enrollees to determine whether they will receive primary care from
a physician, nurse practitioner, or other qualified network provider
base a provider’s participation in the network, reimbursement, and
indemnification levels on the provider’s license or certification
define its service area according to community patterns of care
require enrollees to obtain prior authorization for all emergency or
urgently needed services
7. Dr. Ahmad Shah and Dr. Shantelle Owen provide primary care services to Go to
question
Medicare+Choice enrollees of health plans under the following physician
8.
incentive plans:
• Dr. Shah receives $40 per enrollee per month for providing primary
care and an additional $10 per enrollee per month if the cost of
referral services falls below a specified level
• Dr. Owen receives $30 per enrollee per month for providing primary
care and an additional $15 per enrollee per month if the cost of
referral services falls below a specified level
1 C
2 A
3 D
4 B
5 B
6 C
7 C
8 D
9 A
Reading 7B: Special Considerations for Medicaid Networks
Instructions:
4. Since 1981, states have had the option to experiment with new
Go to
approaches to their Medicaid programs under the “freedom of choice”
question
waivers. Under one such waiver, a Section 1915(b) waiver, states are 5.
allowed to
give Medicaid recipients complete freedom in choosing healthcare
providers
give Medicaid recipients the option to choose not to enroll in a
healthcare plan
mandate certain categories of Medicaid recipients to enroll in health
plans
establish demonstration projects to test new approaches for delivering
care to Medicaid recipients
5. There are several approaches to providing Medicaid health plan. One such
Go to
approach involves the use of organizations who contract with the state’s
question
Medicaid agency to provide primary care as well as administrative services. 6.
These organizations are known as
enrollment brokers
primary care case managers (PCCMs)
certified medical assistants (CMAs)
prepaid health plans (PHPs)
6. State Medicaid agencies can contract with health plans through open Go to
contracting or selective contracting. One advantage of selective contracting is question
that it 7.
Instructions:
The provider network that Shipwright uses to furnish services for its workers’
compensation program will most likely
emphasize primary care and consist mostly of generalists
focus treatment approaches on rapid recovery rather than cost
offer workers’ compensation beneficiaries the same types and levels of
treatment that Shipwright’s traditional network furnishes to group health
plan members
exempt participating providers from meeting standard credentialing
requirements
can place limits on the benefits they will pay for a given claim
can deny coverage for work-related illness or injury if the employer is
not at fault
must pay 100% of work-related medical and disability expenses
can hold employers liable for additional amounts that result from court
decisions
• Describe some situations that may indicate a need to review network adequacy
• List several factors that health plans examine when reassessing access and availability
• Explain the importance of provider retention
• Describe several methods that health plans use to provide continuing education to network providers and their staff
• Explain how direct referral and self-referral programs assist providers with utilization management
• List some of the issues that a health plan typically addresses through surveys of providers and their staffs
• Explain why health plans often seek to involve network providers in network management and medical
management operations
Instructions:
Go to
2. The Elizabethan Health Plan uses a direct referral program, which means
question
that 3.
PCPs in Elizabethan’s network can make most referrals without obtaining
prior authorization from Elizabethan
PCPs in Elizabethan’s network must always refer plan members to other
specialists within the network
Elizabethan’s plan members can bypass the PCP and obtain medical
services from a specialist without a referral
Elizabethan’s plan members must obtain referrals directly from
Elizabethan
3. The Blanchette Health Plan uses a method of claims submission that allows
its providers to submit claims directly to Blanchette through a computer Go to
application-to-application exchange of claims using a standard data format. question
This information indicates that Blanchette allows its providers to submit 4.
claims using technology known as
telemedicine
an electronic referral system
electronic data interchange
encounter reporting
Instructions:
2. The Azure Health Plan strives to ensure for its plan members the best
possible level of care from its providers. In order to maintain such high
standards, Azure uses a variety of quantitative and qualitative (behavioral)
measures to determine the effectiveness of its providers. Azure then
compares the clinical and operational practices of its providers with those of Go to
question
other providers outside the network, with the goal of identifying and 3.
implementing the practices that lead to the best outcomes.
3. Dr. Sylvia Cimer and Dr. Andrew Donne are obstetrician/gynecologists who
participate in the same provider network. Dr. Comer treats a large number of
high-risk patients, whereas Dr. Donne’s patients are generally healthy and
rarely present complications. As a result, Dr. Comer typically uses medical Go to
resources at a much higher rate than does Dr. Donne. In order to equitably question
compare Dr. Comer’s performance with Dr. Donne’s performance, the health 4.
plan modified its evaluation to account for differences in the providers’
patient populations and treatment protocols. The health plan modified Dr.
Comer’s and Dr. Donne’s performance data by means of
a case mix/severity adjustment
an external performance standard
structural measures
behavior modification
1 C
2 C
3 A
4 C
5 D