An Organization That Insures Covered Lives as Well as Owns

question 9

Multiple Choice

An organization that insures covered lives as well as owns (exerts employer control over) the health care providers is a(n) :

• A) Health maintenance organization
• B) Preferred provider organization
• C) Indemnity company
• D) Blue Cross organization

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Definitions:

Retained Earnings

The portion of a company's accumulated net income that is not distributed to shareholders as dividends but is kept as reserves for reinvestment in the business operations.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.