The Following Statements Describe Two Types of HMOs: the Elm

question 61

Multiple Choice

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. The following statements can correctly be made about the reimbursement for Drugs A and B under the MAC pricing system:

• A) Treble most likely is obligated to reimburse Manor 14 cents per tablet for Drug A.
• B) Manor most likely is allowed to bill the subscriber 2 cents per tablet for Drug A.
• C) Treble most likely is obligated to reimburse Manor 5 cents per tablet for Drug B.
• D) All of the above statements are correct.

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Definitions:

Real GDP

The total value of all goods and services produced by an economy adjusted for inflation, offering a more accurate reflection of an economy's size and growth rate.

Price Level

A gauge of the overall current prices for a broad range of goods and services manufactured in the economy.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured in current prices without adjusting for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of an economy's size and how it's grown over time.