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Medical Management Question and Answers

Medical Management

Last Update Oct 15, 2025
Total Questions : 163

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Questions 1

Health plans that choose to contract with external organizations for pharmacy services typically contract with pharmacy benefit managers (PBMs). Functions that a PBM typically performs for a health plan include

1. Managing the costs of prescription drugs

2. Promoting efficient and safe drug use

3. Determining the health plan’s internal management responsibilities for pharmacy services

Options:

A.  

All of the above

B.  

1 and 2 only

C.  

2 and 3 only

D.  

1 only

Discussion 0
Questions 2

Designing effective medical management programs for Medicare beneficiaries requires an understanding of the unique health needs of the Medicare population. One characteristic of Medicare beneficiaries is that they typically

Options:

A.  

do not experience mental health problems

B.  

consume more than half of all prescription drugs

C.  

are likely to equate quality with the technical aspects of clinical procedures

D.  

require longer and more costly recovery periods following acute illnesses or injuries than does the general population

Discussion 0
Questions 3

Determine whether the following statement is true or false:

The utilization review (UR) process produces the greatest number of case management referrals.

Options:

A.  

True

B.  

False

Discussion 0
Questions 4

The delivery of quality, cost-effective healthcare is a primary goal of both group healthcare and workers’ compensation programs. One difference between group healthcare and workers’ compensation is that workers’ compensation

Options:

A.  

provides health and disability benefits to employees injured on the job only if the employer is at fault for the injury

B.  

provides coverage for a variety of direct and indirect healthcare, disability, and workplace costs

C.  

manages costs by including employee cost-sharing features in its benefit design

D.  

places limits on benefits by restricting the amount of benefit payments or the number of covered hospital days or provider office visits

Discussion 0
Questions 5

Emilio Martinez, a member of the Bloom Health Plan, has recently been diagnosed with prostate cancer by his physician, Dr. Robert Cohen. Mr. Martinez has decided to participate in Bloom’s shared decision-making program for prostate cancer. On the basis of this information, it is most likely correct to say

1. That verification of Mr. Martinez’s understanding about his care options protects both Dr. Cohen and Bloom against charges of malpractice

2. That Mr. Martinez and Dr. Cohen will discuss the care options available to Mr. Martinez, but the ultimate decision about care is up to Dr. Cohen

Options:

A.  

Both 1 and 2

B.  

1 only

C.  

2 only

D.  

Neither 1 nor 2

Discussion 0
Questions 6

One method of transferring the information in electronic medical records (EMRs) is through a health information network (HIN). The following statements are about HINs. Three of the statements are true and one is false. Select the answer choice containing the FALSE statement.

Options:

A.  

A HIN may afford a health plan better measurements of outcomes and provider performance.

B.  

The use of a HIN typically increases a health plan’s exposure to liability for poor care.

C.  

Most HINs are Internet-based rather than built on proprietary computer networks.

D.  

Currently, the majority of health plans do not have HINs that are capable of transferring medical records among their network providers.

Discussion 0
Questions 7

The following statement(s) can correctly be made about the use of screening for secondary prevention:

1. Screening activities may involve specialty care providers as well as primary care providers (PCPs) and the health plan

2. Secondary prevention often results in more utilization of services immediately following screening

3. Screening focuses on members who have not experienced any symptoms of a particular illness

Options:

A.  

All of the above

B.  

1 and 3 only

C.  

2 and 3 only

D.  

1 only

Discussion 0
Questions 8

Adele Stanley, a member of the Greenhouse Health Plan, recently went to a network pharmacy to have a prescription filled. The pharmacist informed Ms. Stanley that the prescribed drug was not in the plan formulary and that reimbursement for the drug was not available except in extraordinary circumstances. The pharmacist asked Ms. Stanley if she would accept a generic substitute.

If Ms. Stanley agrees to the generic substitution, she will receive a drug that

Options:

A.  

has not been tested for safety and efficacy in large clinical trials

B.  

is available without a prescription at a reasonable cost

C.  

has been classified by the Food and Drug Administration (FDA) as safe, but that has not been proven fully effective

D.  

contains active ingredients that are identical to those of the prescribed brand-name drug

Discussion 0
Questions 9

Health plan performance measures include structure measures, process measures, and outcome measures. The following statements are about the characteristics of these three types of performance measures. Three of the statements are true and one is false. Select the answer choice containing the FALSE statement.

Options:

A.  

The most widely used structure measures relate to physician education and training.

B.  

One advantage of structure measures over process measures is that structures are often linked directly to healthcare outcomes.

C.  

Process measures are useful in identifying underuse, overuse, and inappropriate use of services.

D.  

One disadvantage of outcome measures is that they can be influenced by factors outside the control of the health plan.

Discussion 0
Questions 10

The Carlyle Health Plan uses the following clinical outcome measures to evaluate its diabetes and asthma disease management programs:

Measure 1: The percentage of diabetic patients who receive foot exams from their providers according to the program’s recommended guidelines Measure 2: The number of asthma patients who visited emergency departments for acute asthma attacks

From the answer choices below, select the response that correctly identifies whether these measures are true outcome measures or intermediate outcome measures. Measure 1- Measure 2-

Options:

A.  

Measure 1-true outcome measure Measure 2-true outcome measure

B.  

Measure 1-true outcome measure Measure 2-intermediate outcome measure

C.  

Measure 1-intermediate outcome measure Measure 2-true outcome measure

D.  

Measure 1-intermediate outcome measure Measure 2-intermediate outcome measure

Discussion 0
Questions 11

Breanna Osborn is a case manager for a regional health plan. One component of Ms. Osborn’s job is the collection and evaluation of medical, financial, social, and psychosocial information about a member’s situation. This component of Ms. Osborn’s job is known as

Options:

A.  

case identification

B.  

case management planning

C.  

healthcare coordination

D.  

case assessment

Discussion 0
Questions 12

The Brighton Health Plan regularly performs prospective UR for surgical procedures. Brighton’s prospective UR activities are likely to include

Options:

A.  

documenting the clinical details of the patient’s condition and care

B.  

tracking the length of inpatient stay

C.  

completing the discharge planning process

D.  

determining the most appropriate setting for the proposed course of care

Discussion 0
Questions 13

The Garnet Health Plan uses provider profiling to measure and improve provider performance. Provider profiling most likely allows Garnet to

Options:

A.  

evaluate all providers without considering differences in risk

B.  

focus on specific clinical decisions of Garnet’s providers rather than on patterns of care

C.  

identify the outliers and high-value providers in its provider network

D.  

measure the effectiveness, but not the efficiency, of Garnet’s providers

Discussion 0
Questions 14

The paragraph below contains two pairs of terms or phrases enclosed in parentheses. Determine which term or phrase in each pair correctly completes the paragraph. Then select the answer choice containing the terms or phrases that you have chosen.

One component of UR is an administrative review. An administrative review compares the proposed medical care to the applicable (medical policy / contract provision). This type of review (can / cannot) be conducted by a nonclinical staff member.

Options:

A.  

medical policy / can

B.  

medical policy / cannot

C.  

contract provision / can

D.  

contract provision / cannot

Discussion 0
Questions 15

To measure performance for quality management, health plans collect and analyze three types of data: financial data, clinical data, and customer satisfaction data. The following statement(s) can correctly be made about the sources of clinical data:

1. Patient surveys are the most widely used source of disease-specific clinical information

2. Outcomes research studies sponsored by academic institutions and professional organizations have limited usefulness for particular health plans or individual providers

3. The SF-36 and the HSQ-39 (Health Status Questionnaire) surveys address both physical and mental health status

Options:

A.  

All of the above

B.  

1 and 2 only

C.  

2 and 3 only

D.  

3 only

Discussion 0
Questions 16

Demetrius Farrell, age 82, is suffering from a terminal illness and has consulted his health plan about the care options available to him. In order to avoid unwanted, futile interventions, Mr. Farrell signed an advance directive that indicates the types of end-of-life medical treatment he wants to receive. His family is to use this document as a guide should Mr. Farrell become incapacitated.

The document that Mr. Farrell is using to communicate his end-of-life healthcare wishes to his family is known as a

Options:

A.  

medical power of attorney

B.  

patient assessment and care plan

C.  

living will

D.  

healthcare proxy

Discussion 0
Questions 17

Health plans communicate proposed performance changes through action statements. Select the answer choice containing an action statement that includes all of the required elements.

Options:

A.  

The proportion of adult members who are screened for hypertension will increase by ten percent.

B.  

Primary care providers (PCPs) will increase the proportion of children under the age of two who are up-to-date on immunizations by seven percent within one year.

C.  

The QM program director will evaluate the level of provider compliance with clinical practice guidelines (CPGs).

D.  

The disease management program director will increase participation by asthmatic children in the health plan’s pediatric asthma disease management program.

Discussion 0
Questions 18

Benchmarking is a quality improvement strategy used by some health plans. With regard to benchmarking, it is correct to say that

Options:

A.  

cost-based benchmarking reveals why some areas of a health plan perform better or worse than comparable areas of other organizations

B.  

diagnosis-related groups (DRGs) are a source of benchmarking data that describe individual procedures and cover both inpatient and outpatient care

C.  

patient billing records provide a much more accurate account of procedure costs for benchmarking than do current procedural terminology (CPT) codes

D.  

the focus of benchmarking for health plan has shifted from identifying the lowest cost practices to identifying best practices

Discussion 0
Questions 19

As a follow-up to a performance improvement plan for member services, the Stellar Health Plan conducted an evaluation of the success of the plan. Stellar conducted its evaluation as the plan was being carried out. The evaluation focused on specific activities and assessed the relative importance of those activities to the plan as a whole. This information indicates that Stellar’s evaluation of the plan was both

Options:

A.  

concurrent and formative

B.  

concurrent and summative

C.  

retrospective and formative

D.  

retrospective and summative

Discussion 0
Questions 20

Some health plans administer a questionnaire known as the Behavioral Risk Factor Surveillance System (BRFSS) as part of their health risk assessment (HRA) processes. The following statements are about the BRFSS. If statements (A) through (C) are all correct, select answer choice (D). Otherwise, select the one correct statement.

Options:

A.  

This questionnaire was designed specifically for use by health plans.

B.  

Each health plan must use the same form of the questionnaire, with no additions or modifications.

C.  

This questionnaire monitors the prevalence of the major behavioral risks associated with illness and injury among adults.

D.  

All of the above statements are correct.

Discussion 0
Questions 21

The paragraph below contains two pairs of terms or phrases enclosed in parentheses. Determine which term or phrase in each pair correctly completes the paragraph. Then select the answer choice containing the terms or phrases that you have chosen.

Due to competitive pressures and consumer demand, many health plans now offer direct access or open access products. Under a direct access product, a member is (required / not required) to select a primary care provider (PCP), and is (required / not required) to obtain a referral from a PCP or the health plan before visiting a network specialist.

Options:

A.  

required / required

B.  

required / not required

C.  

not required / required

D.  

not required / not required

Discussion 0
Questions 22

Since its inception, Medicare has undergone a number of changes because of legal and regulatory action. One result of the Balanced Budget Act (BBA) of 1997 has been to

Options:

A.  

expand Medicare benefits by mandating coverage for certain preventive services

B.  

reduce the number of organizations that can deliver covered services

C.  

encourage growth of managed Medicare programs in all markets

D.  

increase the number of “zero premium” plans available to Medicare beneficiaries

Discussion 0
Questions 23

The paragraph below contains an incomplete statement. Select the answer choice containing the term that correctly completes the paragraph.

The Balanced Budget Act (BBA) of 1997 established the use of ___________ to determine coverage of emergency services for Medicare and Medicaid enrollees in health plans.

Options:

A.  

utilization management standards

B.  

the prudent layperson standard

C.  

preauthorization

D.  

diagnosis-based retrospective review

Discussion 0
Questions 24

In order to achieve changes in outcomes, health plans make changes to existing structures and processes. The introduction of preauthorization as an attempt to control overuse of services is an example of a reactive change. Reactive changes are typically

Options:

A.  

both planned and controlled

B.  

planned, but they are rarely controlled

C.  

controlled, but they are rarely planned

D.  

neither planned nor controlled

Discussion 0