AHIP Health Plan Finance and Risk Management AHM-520 Question # 98 Topic 4 Discussion

AHIP Health Plan Finance and Risk Management AHM-520 Question # 98 Topic 4 Discussion

AHM-520 Exam Topic 4 Question 98 Discussion:
Question #: 98
Topic #: 4

The following information relates to the Hardcastle Health Plan for the month of June:

    Incurred claims (paid and IBNR) equal $100,000

    Earned premiums equal $120,000

    Paid claims, excluding IBNR, equal $80,000

    Total health plan expenses equal $300,000

This information indicates that Hardcastle’s medical loss ratio (MLR) for the month of June was approximately equal to:


A.

40%


B.

67%


C.

83%


D.

120%


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