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Question ID 17152

Health maintenance organizations (HMOs) seeking federal qualification under the HMO Act
of 1973 and its amendments must meet requirements in four basic operational areas. One
operational requirement for qualification is that an HMO must

Option A

 Ensure that at least 1/3 of its policy-making body is comprised of HMO members

Option B

Ensure that there is adequate representation of underserved communities on its policy- making body

Option C

Have an ongoing quality assurance program that meets the requirements of the Centers for Medicaid & Medicare Services (CMS), stresses health outcomes, and provides for review by health professionals

Option D

Test, safeguard, and promote quality of care by following detailed programmatic techniques that are explained in CMS's Federally Qualified HMO (FQHMO) Manual

Correct Answer C
Explanation


Question ID 17153

One typical difference between a for-profit health plan's board of directors and a not-for-
profit health plan's board of directors is that the directors in a for-profit health plan

Option A

Can serve on the board for a period of no more than ten years, whereas the terms of service for a not-for-profit board's directors are usually unlimited by the director's age or by a preset maximum number of years of service

Option B

Must participate in raising capital for the health plan, whereas a not-for-profit board's directors are prohibited from participating directly in raising capital for the health plan

Option C

Are directly accountable to shareholders, whereas a not-for-profit board's directors are accountable to plan members and the community

Option D

Are not compensated for board participation, whereas a not-for-profit board's directors are compensated for board participation

Correct Answer C
Explanation

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