The Following Statements Can Correctly Be Made About the Advantages

question 55

Multiple Choice

The following statements can correctly be made about the advantages and disadvantages to an health plan of using the various delivery options for pharmacy services.

• A) A disadvantage of using open pharmacy networks is that the health plan's control over costs is limited to setting reimbursement levels.
• B) An advantage of using performance-based systems is that they tend to increase participation in the health plan's pharmacy network.
• C) A disadvantage of using customized pharmacy networks is that these networks typically can be implemented only in companies with fewer than 500 employees.
• D) All of these statements are correct.

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Definitions:

Joint Venture Liabilities

The financial obligations that are incurred jointly by partners in a venture, which must be settled together.

Line-by-Line Method

A consolidation technique where the parent company combines its subsidiary's assets, liabilities, income, and expenses line by line into its own financial statements.

One-Line Method

An accounting technique used for combining the financial statement of a parent company and its subsidiary by reporting the investment in a single line.