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Exam AHM-520 topic 1 question 183 discussion

Actual exam question from AHIP's AHM-520
Question #: 183
Topic #: 1
[All AHM-520 Questions]

The Kayak Company self-funds the health plan for its employees. This plan is an example of a type of self-funded plan known as a general asset plan.
Because Kayak's plan is a general asset plan, the funds that Kayak sets aside for the health plan are:

  • A. subject to the claims of Kayak's creditors
  • B. available to Kayak solely for the purpose of paying for the healthcare expenses of Kayak's covered employees
  • C. placed in a trust fund established by Kayak to pay for the health plan
  • D. considered separate from Kayak's current operating funds
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Suggested Answer: A 🗳️

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