The Arista Health Plan is evaluating the following four groups that have applied for group healthcare coverage:
The Blaise Company, a large private employer
The Colton County Department of Human Services (DHS)
A multiple-employer group comprised of four companies
The Professional Society of Daycare Providers
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With respect to the relative degree of risk to Arista represented by these four companies,
the company that would most likely expose Arista to the lowest risk is the:

• A. Blaise Company
• B. Multiple-employer group
• C. Professional Society of Daycare Providers
• D. Colton County DHS

The Rathbone Company has contracted with the Jarvin Insurance Company to provide healthcare benefits to its employees. Under this contract, Rathbone assumes financial responsibility for paying 80% of its estimated annual claims and for depositing the funds necessary to pay these claims into a bank account. Although Rathbone owns the bank account, Jarvin, acting as Rathbone's agent, makes the actual claims payments from this account. Claims in excess of Rathbone's contracted percentage are paid by Jarvin. Rathbone pays to Jarvin a premium for administering the entire plan and bearing the costs of claims in excess of Rathbone's obligation. This premium is substantially lower than would be charged if Jarvin were providing healthcare coverage under a traditional fully insured group plan. Jarvin is required to pay premium taxesonly on the premiums it receives from Rathbone. This information indicates that the type of alternative funding method used by Rathbone is known as a:

• A. Reserve-reduction arrangement
• B. Premium-delay arrangement
• C. Minimum-premium plan
• D. Retrospective-rating arrangement

The Atoll Health Plan must comply with a number of laws that directly affect the plan's contracts. One of these laws allows Atoll's plan members to receive medical services from certain specialists without first being referred to those specialists by a primary care provider (PCP). This law, which reduces the PCP's ability to manage utilization of these specialists, is known as _________.

• A. A due process law
• B. An any willing provider law
• C. A direct access law
• D. A fair procedure law

One true statement about cash-basis accounting is that

• A. Cash-basis accounting records revenue according to the realization principle and expenses according to the matching principle
• B. Cash receipt, but not cash disbursement, is an important component of cash-basis accounting
• C. Most companies use a pure cash-basis accounting system
• D. Health insurance companies and health plans that fall under the jurisdiction of state insurance commissioners must report some items on a cash basis for statutory reporting purposes

The methods of alternative funding for health coverage can be divided into the following general categories:
- Category A-Those methods that primarily modify traditional fully insured group insurance contracts - Category B-Those methods that have either partial or total self funding
Typically, small employers are able to use some of the alternative funding methods in

• A. Neither Category A nor Category B
• B. Category B only
• C. Both Category A and Category B
• D. Category A only