The Ability of a Health Plan to Effectively Perform the Rating

question 25

Multiple Choice

The ability of a health plan to effectively perform the rating and underwriting functions has become critical to the plan's success. In developing its pricing strategy, a health plan has to address the marketplace's ongoing trends and factors, which include

• A) a decreased focus on small to mid-size employer groups
• B) an improvement in the financial performance of health plans
• C) a consolidation of the key players in the health plan industry
• D) a decreased complexity of the products being offered.

---

Definitions:

Lean Manufacturing

A methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Cross-Training

Cross-training involves teaching employees the skills and responsibilities of other positions within the organization to increase flexibility and efficiency.

Product-Oriented Layout

The organization of manufacturing processes around a product. Also referred to as product cells.

External Failure Costs

Expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.