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Exam AHM-510 topic 1 question 43 discussion

Actual exam question from AHIP's AHM-510
Question #: 43
Topic #: 1
[All AHM-510 Questions]

Determine whether the following statement is true or false:
Although most-favored-nation (MFN) clauses in contracts between health plans and healthcare providers are not per se illegal, they should be reviewed under the rule of reason analysis for antitrust purposes.

  • A. True, because the Federal Trade Commission (FTC) ruled that MFN clauses are not per se illegal and the FTC encourages health plans to include them in provider contracts.
  • B. True, because although MFN clauses are not per se illegal, they violate antitrust laws if they have a predatory purpose and an anticompetitive effect.
  • C. False, because MFN clauses involve decisions by providers concerning the level of fees to charge, and thus they are per se illegal.
  • D. False, because MFN clauses are not per se illegal, and thus they are exempt from antitrust laws and regulation by the FTC.
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Suggested Answer: B 🗳️

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