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Network Management Certification Exam

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NEW QUESTION 1

The following statements are about network management for behavioral healthcare (BH). Three of these statements are true and one statement is false. Select the answer choice containing the FALSE statement.

  • A. Two measures of BH quality are patient satisfaction and clinical outcomes assessments.
  • B. For a health plan, one argument in favor of contracting with a managed behavioral healthcare organization (MBHO) is that the health plan's members can gain faster access to BH care.
  • C. In their contracts with health plans, managed behavioral healthcare organizations (MBHOs) usually receive delegated authority for network development and management.
  • D. Health plans generally compensate managed behavioral healthcare organizations (MBHOs) on an FFS basis.

Answer: D

NEW QUESTION 2

In developing a provider network in an large city with a high concentration of young families, the Gypsum Health Plan has set goals focused on the needs of that particular market. The following statements are about this situation. Three of the statements are true, and one of the statements is false. Select the answer choice that contains the FALSE statement.

  • A. Gypsum should attempt to recruit providers who offer extended office hours.
  • B. Gypsum can use the cost-effectiveness of its own existing networks as a benchmark for its cost-savings goals in this market.
  • C. Gypsum will most likely attempt to contract with HMOs.
  • D. Gypsum most likely should set lower cost-savings goals in this market than it would in a rural market with few young families.

Answer: D

NEW QUESTION 3

Jay Mercer is covered under his health plan’s vision care plan, which includes coverage for clinical eye care but not for routine eye care. Recently, Mr. Mercer had a general eye examination and got a prescription for corrective lenses. Mr. Mercer’s vision care plan will cover.

  • A. both the general eye examination and the prescription for corrective lenses
  • B. the general eye examination only
  • C. the prescription for corrective lenses only
  • D. neither the general eye examination nor the prescription for corrective lenses

Answer: D

NEW QUESTION 4

If the Oconee Health Plan reimburses its specialty care physicians (SCPs) under a typical retainer method, then Oconee pays SCPs

  • A. Aseparate amount for each service provided, and the payment amount is based solely on a resource-based relative value scale (RBRVS)
  • B. Aspecified fee that remains the same regardless of how much or how little time or effort is spent on the medical service performed
  • C. Aset amount each month, and Oconee reconciles its payment at periodic intervals on the basis of actual utilization
  • D. Aset amount of cash equivalent to a defined time period’s expected reimbursable charges

Answer: C

NEW QUESTION 5

Lakesha Frazier, a member of a health plan in a rural area, had been experiencing heart palpitations and shortness of breath. Ms. Frazier’s primary care provider (PCP) referred her to a local hospital for an electrocardiogram. The results of the electrocardiogram were transmitted for diagnosis via high-speed data transmission to a heart specialist in a city 500 miles away. This information indicates that the results of Ms. Frazier’s electrocardiogram were transmitted using a communications system known as

  • A. Anarrow network
  • B. An integrated healthcare delivery system
  • C. Telemedicine
  • D. Customized networking

Answer: C

NEW QUESTION 6

The provider contract that Dr. Laura Cartier has with the Sailboat health plan includes a section known as the recitals. Dr. Cartier's contract includes the following statements:

  • A. A statement that identifies the purpose of the contract
  • B. A statement that defines in legal terms the parties to the contract
  • C. A statement that identifies the Sailboat products to be covered by the contractOf these statements, the ones that are likely to be included in the recitals section of D
  • D. Cartier's contract are statements:
  • E. A, B, and C
  • F. A and B only
  • G. A and C only
  • H. B and C only

Answer: A

NEW QUESTION 7

The following statements describe two types of HMOs:
The Elm HMO requires its members to select a PCP but allows the members to go to any other provider on its panel without a referral from the PCP.
The Treble HMO does not require its members to select a PCP. Treble allows its members to go to any doctor, healthcare professional, or facility that is on its panel without a referral from a primary care doctor. However, care outside of Treble's network is not reimbursed unless the provider obtains advance approval from the HMO.
Both HMOs use delegation to transfer certain functions to other organizations. Following the guidelines established by the NCQA, Elm delegated its credentialing activities to the Newnan Group, and the agreement between Elm and Newnan lists the responsibilities of both parties under the agreement. Treble delegated utilization management (UM) to an IPA. The IPA then transferred the authority for case management to the Quest Group, an organization that specializes in case management.
Both HMOs also offer pharmacy benefits. Elm calculates its drug costs according to a pricing system that requires establishing a purchasing profile for each pharmacy and basing reimbursement on the profile. Treble and the Manor Pharmaceutical Group have an arrangement that requires the use of a typical maximum allowable cost (MAC) pricing system to calculate generic drug costs under Treble's pharmacy program. The following statements describe generic drugs prescribed for Treble plan members who are covered by Treble's pharmacy benefits:
The MAC list for Drug A specifies a cost of 12 cents per tablet, but Manor pays 14 cents
per tablet for this drug.
The MAC list for Drug B specifies a cost of 7 cents per tablet, but Manor pays 5 cents per tablet for this drug.
From the following answer choices, select the response that best identifies Elm and Treble:

  • A. Elm: open access (OA) HMO Treble: direct access HMO
  • B. Elm: open access (OA) HMO Treble: gatekeeper HMO
  • C. Elm: direct access HMO Treble: open access (OA) HMO
  • D. Elm: direct access HMO Treble: gatekeeper HMO

Answer: C

NEW QUESTION 8

The vision benefits offered by the Omni Health Plan include clinical eye care only. The following statements describe vision care received by Omni plan members:
•Brian Pollard received treatment for a torn retina he suffered as a result of an accident
•Angelica Herrera received a general eye examination to test her vision
•Megan Holtz received medical services for glaucoma
Of these medical services, the ones that most likely would be covered by Omni's vision coverage would be the services received by:

  • A. M
  • B. Pollard, M
  • C. Herrera, and M
  • D. Holtz
  • E. M
  • F. Pollard and M
  • G. Herrera only
  • H. M
  • I. Pollard and M
  • J. Holtz only
  • K. M
  • L. Herrera and M
  • M. Holtz only

Answer: C

NEW QUESTION 9

The provider contract that Dr. Lorena Chau has with the Fiesta Health Plan includes an evergreen clause. The purpose of this clause is to:

  • A. Allow Fiesta to change or amend the contract without D
  • B. Chau's approval as long as the modifications are made in order to comply with new legal and regulatory requirements
  • C. Prohibit D
  • D. Chau from encouraging her patients to switch from Fiesta to another health plan
  • E. Prohibit D
  • F. Chau from encouraging her patients to switch from Fiesta to another health plan
  • G. Assure that D
  • H. Chau provides Fiesta members with healthcare services in a timely manner appropriate to the member's medical condition

Answer: C

NEW QUESTION 10

With respect to hiring practices, one step that a health plan most likely can take to avoid violating the terms of the Americans with Disabilities Act (ADA) is to

  • A. Require a medical examination prior to accepting an application for employment
  • B. Include in the employment application questions pertaining to health status
  • C. Make a conditional offer of employment, and then require the candidate to have an examination prior to granting specific staff privileges
  • D. Require applicants to answer questions pertaining to the use of drugs and alcohol

Answer: C

NEW QUESTION 11

The introductory paragraph of a provider contract is generally followed by a section called the recitals. The recitals section of the contract typically specifies the

  • A. Purpose of the agreement
  • B. Manner in which the provider is to bill for services
  • C. Definitions of key terms to be used in the contract
  • D. Rate at which the provider will be compensated

Answer: A

NEW QUESTION 12

The Walton Health Plan uses the fee-for-service pharmaceutical reimbursement approach known as the maximum allowable cost (MAC) method. If Walton’s MAC list specifies a cost of 8 cents per tablet for a particular drug but the participating pharmacy pays 10 cents per tablet for the drug, then Walton will be obligated to reimburse the pharmacy for

  • A. 8 cents per tablet, but the pharmacy can bill the subscriber for the remaining 2 cents per tablet
  • B. 8 cents per tablet, and the pharmacy cannot bill the subscriber for the remaining 2 cents per tablet
  • C. 10 cents per tablet, but the pharmacy must refund the extra 2 cents per tablet to the subscriber
  • D. 10 cents per tablet, and the pharmacy is not required to refund the extra 2 cents per tablet to the subscriber

Answer: B

NEW QUESTION 13

The Enterprise Health Plan has indicated an interest in delegating its medical records review activities to the Teal Group and has forwarded a typical letter of intent to Teal. One true statement about this letter of intent is that it:

  • A. Is a contract that creates a legally binding relationship between Enterprise and Teal
  • B. Cannot include a confidentiality clause
  • C. Serves as a delegation agreement between Enterprise and Teal
  • D. Outlines the delegation oversight process

Answer: D

NEW QUESTION 14

The following statements are about waivers and the Medicaid program. Select the answer choice containing the correct statement:

  • A. The Balanced Budget Act (BBA) of 1997 eliminated the need for states to make formal applications for waivers.
  • B. Section 1115 waivers allow states to bypass the Medicaid program's usual requirement of giving recipients complete freedom of choice in selecting providers.
  • C. Title XVIII waivers allow states to mandate certain categories of Medicaid recipients to enroll in health plan plans.
  • D. Section 1915(b) waivers allow states to establish demonstration projects in order to test new approaches to benefits and services provided by Medicaid.

Answer: A

NEW QUESTION 15

An increasing number of health plans offer coverage for alternative healthcare services. One such alternative healthcare service is biofeedback. Biofeedback is an approach that

  • A. is based on an ancient Chinese system of healing in which needles are inserted into specific sites on the body to relieve pain
  • B. treats diseases with tiny doses of substances which, in healthy people, are capable of producing symptoms like those of the disease being treated
  • C. uses electronic monitoring devices to teach a patient to develop conscious control of involuntary bodily functions, such as heart rate and body temperature
  • D. incorporates a variety of therapies, such as homeopathy, lifestyle modification, and herbal medicines, to support and maintain the body’s ability to heal itself

Answer: C

NEW QUESTION 16

For this question, if answer choices (A) through (C) are all correct, select answer choice (D). Otherwise, select the one correct answer choice. A credentials verification organization (CVO) can be certified to verify certain pertinent credentialing information, including

  • A. Liability claims histories of prospective providers
  • B. Hospital privileges of prospective providers
  • C. Malpractice insurance on prospective providers
  • D. All of the above

Answer: D

NEW QUESTION 17

With regard to the laws and regulations on access and adequacy of provider networks, it can correctly be stated that:

  • A. most access and adequacy guidelines relate to preferred provider organizations (PPOs) or managed indemnity products
  • B. corporate practice of medicine laws require staff model HMOs to hire physicians directly,even if the physicians do not own the HMO
  • C. any willing provider laws prevent a health plan from making exclusive or semi-exclusive arrangements with a provider or a group of providers
  • D. the NAIC Managed Care Plan Network Adequacy Model Act requires states to use provider-enrollee ratios as the sole measure of network adequacy

Answer: C

NEW QUESTION 18
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