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AHM-250 Healthcare Management: An Introduction Question and Answers

Question # 4

The following organizations are the primary sources of accreditation of healthcare organizations:

A.

National Committee for Quality Assurance (NCQA)

B.

American Accreditation HealthCare Commission/URAC Of these organizations, performance data is included i

C.

A only

D.

B only

E.

A and B

F.

none of the above

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Question # 5

The Courtland PPO maintains computerized records that include clinical, demographic, and administrative data about individual plan members. The data in these records is available to plan providers, ancillary service departments, pharmacies, and others inv

A.

a data warehouse

B.

a decision support system

C.

an outsourcing system

D.

an electronic medical record (EMR) system

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Question # 6

One of the most influential pieces of legislation in the advancement of managed care within the United States was the HMO Act of 1973. One provision of the HMO Act of 1973 was that it

A.

emphasized compensating physicians based solely on the volume of medical services they provide

B.

exempted HMOs from all state licensure requirements

C.

established a process under which HMOs could elect to be federally qualified

D.

required federally qualified HMOs to relate premium levels to the health status of the individual enrollee or employer group

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Question # 7

Which of the following features differentiates a 'Clinic without walls1 from a consolidated medical group?

A.

Unlike a consolidated medical group, physicians in a 'Clinic without walls' maintain their practices independently in multiple locations.

B.

Unlike a consolidated medical group, a 'Clinic without walls' performs or arranges for business operations for the member physicians.

C.

Both A & B

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Question # 8

The statements below describe technology used by two health plans to respond to incoming telephone calls:

  • The Manor Health Plan uses an automated system that answers telephone calls with recorded or synthesized speech and prompts the caller to respond t

A.

Manor's system is best described as an automated call distributor (ACD).

B.

Both Manor's system and Squire's device are applications of computer/telephone integration (CTI).

C.

Squire's device is best described as an interactive voice response (IVR) system.

D.

All of these statements are correct.

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Question # 9

The following statements are about standards set forth in the Quality Improvement System for Managed Care (QISMC), established by the Health Care Financing Administration (HCFA, now known as the Centers for Medicare and Medicaid Services).

A.

As a result of the Balanced Budget Refinement Act (BBRA), PPOs are required to meet all QISMC quality requirements.

B.

QISMC standards typically do not apply to such Medicare services as mental health or substance abuse services.

C.

Medicaid primary care case manager (PCCM) programs are subject to the same QISMC quality standards and performance measures as are all other Medicare and Medicaid programs.

D.

QISMC standards and guidelines are required for Medicare MCOs, but they are applicable to Medicaid MCOs at the discretion of the individual states.

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Question # 10

The Granite Health Plan is a coordinated care plan (CCP) that participates in the Medicare+Choice program. This information indicates that Granite

A.

must comply with all state-mandated benefits and provider requirements

B.

must offer each of its enrollees a Medicare supplement

C.

places primary care t the censer of the delivery system and focuses on managing patient care at all levels

D.

most likely must cover Medicare Part A, but not Medicare Part B, benefits

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Question # 11

The Robust Health Plan sometimes uses prospective experience rating to calculate the premiums for a group. Under prospective experience rating, Robust most likely will:

A.

At the end of a rating period, the financial gains and losses experienced by the group during that rating period and, if the group's experience during the period is better than expected, refund part of the group's premium in the form of an experience ratio

B.

Use Robust's average experience with all groups to calculate this particular group's premium.

C.

Use the group's past experience to estimate the group's expected experience for the next period.

D.

All of the above

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Question # 12

In 1999, the United States Congress passed the Financial Services Modernization Act, referred to as the Gramm-Leach-Bliley (GLB) Act. The primary provisions included under the GLB Act require financial institutions, including health plans, to take several

A.

Notify customers of any sharing of non-public personal financial information with nonaffiliated third parties.

B.

Prohibit customers from having the opportunity to 'opt-out' of sharing non-public personal financial information.

C.

Disclose to affiliates, but not to third parties, their privacy policies regarding the sharing of nonpublic personal financial information.

D.

Agree not to disclose personally identifiable financial information or personally identifiable health information.

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Question # 13

From the following answer choices, choose the description of the ethical principle that best corresponds to the term Autonomy

A.

Health plans and their providers are obligated not to harm their members

B.

Health plans and their providers should treat each member in a manner that respects the member's goals and values, and they also have a duty to promote the good of the members as a group

C.

Health plans and their providers should allocate resources in a way that fairly distributes benefits and burdens among the members

D.

Health plans and their providers have a duty to respect the right of their members to make decisions about the course of their lives

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Question # 14

All CDHP products provide federal tax advantages while allowing consumers to save money for their healthcare.

A.

True

B.

False

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Question # 15

Health plans sometimes contract with independent organizations to provide specialty services, such as vision care or rehabilitation services, to plan members. Specialty services that have certain characteristics are generally good candidates for health pl

A.

Low or stable costs.

B.

Appropriate, rather than inappropriate, utilization rates.

C.

A benefit that cannot be easily defined.

D.

Defined patient population.

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Question # 16

Ian Vladmir wants to have a routine physical examination to ascertain that he is in good health. Mr. Vladmir is a member of a health plan that will allow him to select the physician of his choice, either from within his plan's network or from outside of h

A.

a traditional HMO plan

B.

a managed indemnity plan

C.

a point of service (POS) option

D.

an exclusive provider organization (EPO)

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Question # 17

Each of the following statements describes a health plan that is using a method of managing institutional utilization. Select the answer choice that describes a health plan's use of retrospective review to decrease utilization of hospital services.

A.

The Serenity Healthcare Organization requires a plan member or the provider in charge of the member's care to obtain authorization for inpatient care before the member is admitted to the hospital.

B.

UR nurses employed by the Friendship Health Plan monitor length of stay to identify factors that might contribute to unnecessary hospital days.

C.

The Optimum Health Group evaluates the medical necessity and appropriateness of proposed services and intervenes, if necessary, to redirect care to a more appropriate care setting.

D.

The Axis Medical Group examines provider practice patterns to identify areas in which services are being underused, overused, or misused and designs strategies to prevent inappropriate utilization in the future.

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Question # 18

A health plan may use one of several types of community rating methods to set premiums for a health plan. The following statements are about community rating. Select the answer choice containing the correct statement.

A.

Standard (pure) community rating is typically used for large groups because it is the most competitive rating method for large groups.

B.

Under standard (pure) community rating, a health plan charges all employers or other group sponsors the same dollar amount for a given level of medical benefits or health plan, without adjusting for factors such as age, gender, or experience.

C.

In using the adjusted community rating (ACR) method, a health plan must consider the actual experience of a group in developing premium rates for that group.

D.

The Centers for Medicare and Medicaid Services (CMS) prohibits health plans that assume Medicare risk from using the adjusted community rating (ACR) me

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Question # 19

In 1999, the United States Congress passed the Financial Services Modernization Act, which is referred to as the Gramm-Leach-Bliley (GLB) Act. The following statement(s) can correctly be made about this act:

A.

The GLB Act allows convergence among the transaction

B.

A only

C.

Both A and B

D.

B only

E.

Neither A nor B

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Question # 20

In the following sections, we will describe some of the measures health plans use to evaluate the quality of the services and healthcare they offer their members.

Which of the following is the best description of what a 'Process measure' evaluates?

A.

The nature, quantity, and quality of the resources that a health plan has available for member service and patient care.

B.

The methods and procedures a health plan and its providers use to furnish service and care.

C.

The extent to which services succeed in improving or maintaining satisfaction and patient health.

D.

None of the above

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Question # 21

Dr. Samuel Aldridge's provider contract with the Badger Health Plan includes a typical due process clause. The primary purpose of this clause is to:

A.

State that Dr. Aldridge's provider contract with Badger will automatically terminate if he loses his medical license or hospital privileges.

B.

Specify a time period during which the party that breaches the provider contract must remedy the problem in order to avoid termination of the contract.

C.

Give Dr. Aldridge the right to appeal Badger's decision if he is terminated with cause from Badger's provider network.

D.

Specify that Badger can terminate this provider contract without providing a reason, but only if Badger gives Dr. Aldridge at least 90-days' notice of its intent to terminate the contract.

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Question # 22

In certain situations, a health plan can use the results of utilization review to intervene, if necessary, to alter the course of a plan member's medical care. Such intervention can be based on the results of

A.

Prospective review

B.

Concurrent review

C.

D.

A, B, and C

E.

A and B only

F.

A and C only

G.

B only

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Question # 23

Following a report by the Institute of Medicine on the incidence and consequences of medical errors, a national task force recommended implementation of a nationwide mandatory system of collecting, analyzing, and reporting standardized information about m

A.

random change

B.

structural change

C.

haphazard change

D.

reactive change

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Question # 24

Ed Murray is a claims analyst for a managed care plan that provides a higher level of benefits for services received in-network than for services received out-of-network. Whenever Mr. Murray receives a health claim from a plan member, he reviews the claim

A.

A, B, C, and D

B.

A and C only

C.

A, B, and D only

D.

B, C, and D only

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Question # 25

In order to measure the expenses of institutional utilization, Holt Healthcare Group uses the standard formula to calculate hospital bed days per 1,000 plan members per year. On October 23, Holt used the following information to calculate the bed days per

A.

278

B.

397

C.

403

D.

920

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Question # 26

By definition, the marketing process of defining a certain place or market niche for a product relative to competitors and their products and then using the marketing mix to attract certain market segments is known as

A.

branding

B.

positioning

C.

database marketing

D.

personal selling

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Question # 27

Ashley Martin is covered by a managed healthcare plan that specifies a $300 deductible and includes a 30% coinsurance provision for all healthcare obtained outside the plan’s network of providers. In 1998, Ms. Martin became ill while she was on vacation,

A.

$300

B.

$510

C.

$600

D.

$810

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Question # 28

In order to cover some of the gap between FFS Medicare coverage and the actual cost of services, beneficiaries often rely on Medicare supplements. Which of the following statements about Medicare supplements is correct?

A.

The initial ten (A-J) Medigap policies offer a basic benefit package that includes coverage for Medicare Part A and Medicare Part B coinsurance.

B.

Each insurance company selling Medigap must sell all the different Medigap policies.

C.

Medicare SELECT is a Medicare supplement that uses a preferred provider organization (PPO) to supplement Medicare Part A coverage.

D.

Medigap benefits vary by plan type (A through L), and are not uniform nationally.

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Question # 29

In preparation for its expansion into a new service area, the Regal MCO is meeting with Dr. Nancy Buhner, a cardiologist who practices in Regal's new service area, in order to convince her to become one of the plan's participating providers. As part of the

A.

ensure that Dr. Buhner complies with all of the provisions of the Ethics in Patient Referrals Act

B.

learn whether Dr. Buhner is a licensed medical practitioner

C.

confirm Dr. Buhner's membership in the National Committee for Quality Assurance (NCQA)

D.

learn whether Dr. Buhner has had a medical malpractice claim filed or other disciplinary actions taken against her

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Question # 30

A health plan's ability to establish an effective provider network depends on the characteristics of the proposed service area and the needs of proposed plan members. It is generally correct to say that

A.

health plans have more contracting options if providers are affiliated with single entities than if providers are affiliated with multiple entities

B.

urban areas offer more flexibility in provider contracting than do rural areas

C.

consumers and purchasers in markets with little health plan activity are likely to be more receptive to HMOs than to loosely managed plans such as PPOs

D.

large employers tend to adopt health plans more slowly than do small companies

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Question # 31

Bill the member for the balance of the fee above the maximum allowable amount under the fee schedule reimbursement method

A.

UCR fee

B.

Capitation fee

C.

Balance bill

D.

Discounted fee-for-service

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Question # 32

The following statements describe individuals who are applying for individual health insurance coverage:

Six months ago, Wilbur Lee lost his health insurance coverage due to a reduction in work hours and has exhausted his coverage under COBRA. Mr. Lee has

A.

both Mr. Lee and Mr. Beeker

B.

Mr. Lee only

C.

Mr. Beeker only

D.

neither Mr. Lee nor Mr. Beeker

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Question # 33

The following statement(s) can correctly be made about electronic data interchange (EDI):

A.

EDI differs from eCommerce in that EDI involves back-and-forth exchanges of information concerning individual transactions, whereas eCommerce is the transfer of d

B.

Both A and B

C.

A only

D.

B only

E.

Neither A nor B

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Question # 34

Which of the choices below contains the four tools used by marketers that make up the 'promotion mix'?

A.

Advertising, personal selling, sales promotion, and publicity.

B.

Advertising, price, sales promotion, and publicity.

C.

Admissions, personal selling, sales promotion, and publicity.

D.

Advertising, personal selling, sales promotion, and privacy.

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Question # 35

The Internal Revenue Service has ruled that an HDHP coupled with an HSA may cover certain types of preventive care without a deductible or with a lower amount than the annual deductible applicable to all other services. According to IRS guidance, which on

A.

Immunizations for children and adults

B.

Tests and diagnostic procedures ordered with routine examinations

C.

Smoking cessation programs

D.

Gastric bypass surgery for obesity

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Question # 36

The main purpose of the Health Plan Employer Data and Information Set (HEDIS) is to provide

A.

expert consultation to end-users for solving specialized and complex healthcare problems through the use of a knowledge-based computer system

B.

a comprehensive accreditation for PPOs

C.

measurements of plan performance and effectiveness that potential healthcare purchasers can use to compare quality offered by different healthcare plans

D.

a mathematical model that can predict future claim payments and premiums

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Question # 37

Which of the following is NOT a factor that is used by MCOs to determine which services will undergo utilization review?

A.

Cost per procedure

B.

Concurrent review

C.

Cost of review

D.

Access requirements

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Question # 38

The following statements apply to health reimbursement arrangements. Select the answer choice that contains the correct statement.

A.

Only employers are permitted to establish and fund HRAs.

B.

The popularity of HRAs waned following a 2002 ruling by U.S. Treasury Department regarding their treatment in the tax code.

C.

HRAs must be offered in conjunction with a high-deductible health plan.

D.

The guaranteed portability feature of HRAs has contributed to their popularity.

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Question # 39

The following statements are about issues associated with marketing healthcare plans to small groups and large groups. Select the answer choice that contains the correct statement.

A.

In the large group market, large group accounts that have employees in more than one geographic area who are covered through a single national contract for healthcare coverage are known as large local groups.

B.

Because providing healthcare coverage for employees is often a burden for small businesses, price is typically the most critical consideration for small businesses in selecting a healthcare plan.

C.

health plans typically treat an employer purchasing coalition as a small group for marketing purposes.

D.

Large groups rarely use self-funding to finance their healthcare plans.

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Question # 40

Each time a patient visits a provider he has to pay a fixed dollar amount?

A.

Deductible

B.

Copayment

C.

Capitation

D.

Co-insurance

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Question # 41

The HMO Act of 1973 was significant in that the Act

A.

mandated certain requirements that all HMOs had to meet in order to conduct business

B.

required that all HMOs be licensed as insurance companies

C.

offered HMOs federal financial assistance through grants and loans, and provided access to the employer-based insurance market

D.

encouraged the use of pre-existing condition exclusion provisions in all HMO contracts

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Question # 42

Keith Murray is a 45 year old chartered accountant & is employed in Livingstone consultancy firm. He has been paying payroll taxes for the past 15 years. Which of the following statements is true regarding Medicare Part A entitlement?

A.

Keith shall be entitled to Part A benefits when he attains 65 years of age

B.

Keith’s wife shall be entitled to Part A benefits when she attains 65 years of age

C.

Keith’s wife shall be required to pay a monthly premium in order to receive Medicare Part A benefits

D.

Both a & b

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Question # 43

The Links Company, which offers its employees a self-funded health plan, signed a contract with a third party administrator (TPA) to administer the plan. The TPA handles the group's membership services and claims administration. The contract between Links

A.

a manual rating contract

B.

a funding vehicle contract

C.

an administrative services only (ASO) contract

D.

a pooling contract

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Question # 44

The Oriole MCO uses a typical diagnosis-related groups (DRGs) payment method to reimburse the Isle Hospital for its treatment of Oriole members. Under the DRG payment method, whenever an Oriole member is hospitalized at Isle, Oriole pays Isle

A.

an amount based on the weighted value of each medical procedure or service that Isle provides, and the weighted value is determined by the appropriate current procedural terminology (CPT) code for the procedure or service

B.

a fixed rate based on average expected use of hospital resources in a given geographical area for that DRG

C.

a retrospective reimbursement based on the actual costs of the Oriole member's hospitalization

D.

a specific negotiated amount for each day the Oriole member is hospitalized

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Question # 45

One HMO model can be described as an extension of a group model HMO because it contracts with multiple group practices, rather than with a single group practice. This HMO model is known as the

A.

staff model HMO

B.

IPA model HMO

C.

direct contract model HMO

D.

network model HMO

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Question # 46

In the paragraph below, two statements each contain a pair of terms enclosed in parentheses. Determine which term correctly completes each statement. Then select the answer choice containing the two terms that you have chosen. For providers, (operational /

A.

operational / an acquisition

B.

operational / a consolidation

C.

structural / an acquisition

D.

structural / a consolidation

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Question # 47

Katrina Lopez is a claims analyst for a health plan that provides a higher level of benefits for services received in-network than for services received out-of-network. Ms. Lopez reviewed a health claim for answers to the following questions:

Question A —

A.

A, B, C, and D

B.

A, B, and D only

C.

B, C, and D only

D.

A and C only

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Question # 48

One true statement regarding ethics and laws is that the values of a community are reflected in

A.

both ethics and laws, and both ethics and laws are enforceable in the court system

B.

both ethics and laws, but only laws are enforceable in the court system

C.

ethics only, but only laws are enforceable in the court system

D.

laws only, but both ethics and laws are enforceable in the court system

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Question # 49

Patrick Flaherty's employer has contracted to receive healthcare for its employees from the Abundant Healthcare System. Mr. Flaherty visits his primary care physician (PCP), who sends him to have some blood tests. The PCP then refers Mr. Flaherty to a special

A.

an integrated delivery system (IDS)

B.

a Management Services Organization (MSO)

C.

a Physician Practice Management (PPM) company

D.

a physician-hospital organization (PHO)

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Question # 50

Ronald Canton is a member of the Omega MCO. He receives his nonemergency medical care from Dr. Kristen High, an internist. When Mr. Canton needed to visit a cardiologist about his irregular heartbeat, he first had to obtain a referral from Dr. High to see

A.

Dr. High serves as the coordinator of care for the medical services that Mr. Canton receives.

B.

Omega's network of providers includes Dr. High, but not Dr. Miller.

C.

Omega's system allows its members open access to all of Omega's participating providers.

D.

Omega used a financing arrangement known as a relative value scale (RVS) to compensate Dr. Miller.

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Question # 51

PBM plans operate under several types of contractual arrangements. Under one contractual arrangement, the PBM plan and the employer agree on a target cost per employee per month. If the actual cost per employee per month is greater than the target cost, t

A.

fee-for-service arrangement

B.

risk sharing contract

C.

capitation contract

D.

rebate contract

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Question # 52

More procedures or services may be fully covered within the PPO network than those out of network.

A.

True

B.

False

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Question # 53

The Ark Health Plan, is currently recruiting providers in preparation for its expansion into a new service area. A recruiter for Ark has been meeting with Dr. Nan Shea, a pediatrician who practices in Ark's new service area, in order to convince her to be

A.

Has ever participated in any quality improvement activities.

B.

Is a participating provider in a health plan that will compete with Ark in its new service area.

C.

Meets the requirements of the Ethics in Patient Referrals Act.

D.

Has had a medical malpractice claim filed or other disciplinary actions taken against her.

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Question # 54

Members who qualify to participate in a health plan's case management program are typically assigned a case manager. During the course of the member's treatment, the case manager is responsible for

A.

Coordinating and monitoring the member's care

B.

Approve

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Question # 55

One device that PBM plans use to manage both the cost and use of pharmaceuticals is a formulary. A formulary is defined as

A.

a listing of drugs classified by therapeutic category or disease class that are considered preferred therapy for a given managed population and that are to be used by a health plan's providers in prescribing medications

B.

a reduction in the price of a particular pharmaceutical obtained by the PBM from the pharmaceutical manufacturer

C.

drugs ordered and delivered through the mail to the PBM's plan members at a reduced cost

D.

an identification card issued by the PBM to its plan members

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