AAM Phase 1 Practice Exam
$69.00
Unlock the full practice quiz
Get complete access to the questions, explanations and printable quiz resources.
Full access: unlock all quiz questions and explanations.
Printable review: access the full quiz PDF with correct answers after purchase.
About this Exam
Prepare with the AAM Phase 1 Practice Exam practice quiz. This question bank includes 10 questions covering sets, limits, account, and phase. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.
Sample Questions
Question
1
Who sets the limits on an HRA account?
Explanation:
HRAs are employer-established accounts, so the annual limit is defined in the employer’s plan design. The employer decides how much money the plan can reimburse each year and what expenses qualify, making the cap part of the plan document. The government provides the overarching rules HRAs must follow, and the insurer may handle administering reimbursements, but neither sets the specific yearly limit—that power rests with the employer.
Question
2
Leverage trend is used in underwriting to reflect the impact of what on premiums?
Explanation:
Leverage trend reflects how medical cost inflation specifically affects large claims, and that impact is what underpins premium changes. Large claims carry outsized weight in overall costs, so when medical prices rise, the cost of those high‑cost cases tends to grow more than average. By isolating this effect, underwriters price premiums to cover the expected inflation-driven growth in big‑ticket claims, which can push premiums higher even if general cost trends seem modest. Administrative costs, patient adherence, and rebates influence costs in different ways, but they’re not the factor focused on here—the idea is capturing the inflation impact on large claims.
Question
3
What are network discounts?
Explanation:
Network discounts are savings negotiated between your health plan and providers who are in the plan’s network. When you use these in-network providers, they’ve agreed to a discounted rate with the insurer, so the billed amount is reduced and your out-of-pocket costs are based on that lower rate. This is why the description fits: discounts for using in-network providers. These discounts aren’t about premiums—the cost of having the plan itself—and they aren’t just lower co-pays, which are fixed amounts you pay for a visit. They also don’t apply to out-of-network services, which typically don’t carry the plan’s negotiated rates and can cost more.
Question
4
Public exchanges are best described as which of the following?
Explanation:
Public exchanges are marketplaces designed to give individuals access to private health plans outside of employer-based or government-run coverage, with subsidies available to many based on income. The option that describes enabling access to insurance before turning 65 captures the practical effect: people can obtain private coverage even as they approach Medicare eligibility, which can support an earlier retirement if they choose, though costs can be higher for some. The other statements don’t fit because exchanges don’t mandate employer coverage, aren’t a space with no plan scrutiny, don’t provide subsidies to everyone, and aren’t designed as a retirement mechanism.
Question
5
What happens to HRA balances when employment ends?
Explanation:
HRA funds are owned by the employer and are not portable to the employee. When employment ends, any unused balance generally does not transfer to a new employer or to the employee; it stays with the employer under the plan rules (often being forfeited by the employee and retained by the employer). The exact treatment is defined in the plan document, but the standard rule is that the balance remains with the employer.
Ready to test your knowledge?
Buy Now to AccessAdditional Information
AAM Phase 1 Practice Exam
This practice set contains 10 questions from the matching question bank and focuses on sets, limits, account, and phase. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.
This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.
Frequently Asked Questions
This quiz contains a total of 10 practice questions carefully selected to test your knowledge on this subject.
Yes, you will have exactly 0 minutes to complete the exam. A countdown timer will be visible once you start.
Yes, you can retake this practice test as many times as you need. The questions and options may be randomized on subsequent attempts to ensure comprehensive learning.
Reviews
5.0
Based on 0 reviews
Leave a Review
No reviews yet. Be the first to review!