AHIP Health Plan Finance and Risk Management AHM-520 Question # 122 Topic 6 Discussion

AHIP Health Plan Finance and Risk Management AHM-520 Question # 122 Topic 6 Discussion

AHM-520 Exam Topic 6 Question 122 Discussion:
Question #: 122
Topic #: 6

The Savanna health plan used a risk analysis technique which defines the key assumptions of Savanna's strategic financial plan in terms of mathematical formulas that can be correlated to each other or analyzed independently. This technique allowed Savanna to simulate probable future events on a computer and produce a distribution of possible outcomes. This risk analysis technique, which can be used to predict Savanna's distribution of expected claims, is known as


A.

A hurdle rate simulation


B.

Optimistic, most likely, pessimistic scenario modeling


C.

A Monte Carlo simulation


D.

Debt covenant modeling


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