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Question ID 17178

Greenpath Health Services, Inc., an HMO, recently terminated some providers from its
network in response to the changing enrollment and geographic needs of the plan. A
provision in Greenpath's contracts with its healthcare providers states that Greenpath can
terminate the contract at any time, without providing any reason for the termination, by
giving the other party a specified period of notice.
The state in which Greenpath operates has an HMO statute that is patterned on the NAIC
HMO Model Act, which requires Greenpath to notify enrollees of any material change in its
provider network. As required by the HMO Model Act, the state insurance department is
conducting an examination of Greenpath's operations. The scope of the on-site
examination covers all aspects of Greenpath's market conduct operations, including its
compliance with regulatory requirements.
With respect to the type of change that constitutes a material change under the HMO
Model Act's disclosure requirements, the termination of one healthcare provider from
Greenpath's provider network

Option A

Always qualifies as a material change in the plan, and Greenpath must report the change to all plan enrollees

Option B

 Always qualifies as a material change in the plan, and Greenpath must report the change to only those plan enrollees who have received care from the terminated provider

Option C

 Qualifies as a material change in the plan only if the provider is a primary care provider, and in such a case Greenpath must report the change to all plan enrollees

Option D

Qualifies as a material change in the plan only if the provider is a primary care provider, and in such a case Greenpath must report the change to only those plan enrollees who receive primary care from the terminated provider

Correct Answer D
Explanation


Question ID 17179

Arthur Dace, a plan member of the Bloom Health Plan, tried repeatedly over an extended
period to schedule an appointment with Dr. Pyle, his primary care physician (PCP). Mr.
Dace informally surveyed other Bloom plan members and found that many people were
experiencing similar problems getting an appointment with this particular provider. Mr.
Dace threatened to take legal action against Bloom, alleging that the health plan had
deliberately allowed a large number of patients to select Dr. Pyle as their PCP, thus making
it difficult for patients to make appointments with Dr. Pyle.
Bloom recommended, and Mr. Dace agreed to use, an alternative dispute resolution (ADR)
method that is quicker and less expensive than litigation. Under this ADR method, both
Bloom and Mr. Dace presented their evidence to a panel of medical and legal experts, who
issued a decision that Bloom's utilization management practices in this case did not
constitute a form of abuse. The panel's decision is legally binding on both parties.
This information indicates that Bloom resolved its dispute with Mr. Dace by using an ADR
method known as:

Option A

Corporate risk management

Option B

An ombudsman program

Option C

An ethics committee

Option D

Arbitration

Correct Answer D
Explanation

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