- (Topic 2)
The following information relates to the Hardcastle Health Plan for the month of June:
✑ Incurred claims (paid and IBNR) equal $100,000
✑ Earned premiums equal $120,000
✑ Paid claims, excluding IBNR, equal $80,000
✑ Total health plan expenses equal $300,000
This information indicates that Hardcastle’s medical loss ratio (MLR) for the month of June was approximately equal to:
Correct Answer:C
- (Topic 1)
If the Ascot health plan's accountants follow the going-concern concept under GAAP, then these accountants most likely
Correct Answer:C
- (Topic 1)
A health plan that capitates a provider group typically provides or offers to provide stop-loss coverage to that provider group.
Correct Answer:A
- (Topic 2)
The process of converting the present value of a specified amount of money to its future value is known as
Correct Answer:B
- (Topic 1)
The Eclipse Health Plan is a not-for-profit health plan that qualifies under the Internal Revenue Code for tax-exempt status. This information indicates that Eclipse
Correct Answer:B