Free AHM-540: Medical Management Exam Questions and Answers
Medical Management is one of the AHIP tests covered here, sat under the code AHM-540. AHIP runs two unrelated things under one name: the annual Medicare and Fraud, Waste and Abuse training that Medicare agents must complete to be appointed, and a separate catalogue of insurance designations such as HCAFA and the Academy for Healthcare Management courses. They have different audiences and different rules.
Looking for AHM-540 exam dumps or ExamTopics AHM-540 questions? These AHM-540 practice questions cover the same ground with verified answers and explanations, a downloadable AHM-540 PDF and a full AHM-540 practice test, kept current as AHIP updates the exam.
Last updated: November 4, 2026
- Exam code
- AHM-540
- Provider
- AHIP
- Questions in our bank
- 1000+
- Free to read
- First 10, with answers
- Our test mode duration & pass mark
- 130 mins · 70%
- Verified answers
- Reviewed weekly
Recommended: Switch to Test Mode to start a practice test that simulates the real exam experience.
Question #1
The Lakeshore Health Plan mails reminders to female members aged 50 to 74 who have not had a mammogram in the past two years. The purpose of the program is to detect breast cancer in its early stages, before symptoms appear. This program is an example of which level of prevention?
Correct answer: A
Explanation
Secondary prevention uses screening to detect disease early, before symptoms appear, so treatment can begin sooner. Primary prevention aims to keep disease from occurring, as immunization does. Tertiary prevention limits complications in members who already have an established disease.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #2
Under the original Medicare program, Medicare Part B covers
Correct answer: D
Explanation
Part B is the medical insurance part of Medicare and covers physician services, outpatient care, and many preventive services. Part A covers inpatient hospital and related facility care. Part C is Medicare Advantage and Part D is the outpatient prescription drug benefit.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #3
Which of the following best describes subacute care?
Correct answer: A
Explanation
Subacute care sits between acute hospital care and traditional nursing facility care and serves patients who are medically stable but need more skilled care than a nursing facility usually provides. The other options describe intensive care, custodial care, and hospice care.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #4
Which of the following statements correctly describes concurrent review?
Correct answer: B
Explanation
Concurrent review takes place while care is under way, most often for inpatient admissions, to decide whether continued stay or services remain medically necessary. Review before delivery is prospective (prior authorization), and review of claims after care is retrospective review. Arranging post-discharge services is discharge planning, not concurrent review.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #5
The Lakeshore Health Plan has delegated utilization review for its HMO members to Ridgeway Medical Group under a written agreement. Which action is appropriate for Lakeshore to take to oversee the delegated function?
Correct answer: D
Explanation
A health plan that delegates a function remains accountable for it, so it must monitor the delegate through reports and periodic audits against the agreement. Relying only on a certificate skips oversight, and approving every decision defeats the purpose of delegating. Accountability to regulators cannot be transferred by contract.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #6
Walter Park, age 78, is stable after hospital treatment for a hip fracture. He needs daily nursing care for wound management and daily physical therapy, but he does not need the intensity of services provided in an acute care hospital, and he cannot manage safely at home. His case manager is arranging the next level of care. Which setting is most appropriate?
Correct answer: B
Explanation
A skilled nursing facility provides daily skilled nursing and rehabilitation to patients who no longer need acute hospital care but cannot yet return home. A long-term acute care hospital serves patients who still need prolonged hospital-level care. Hospice is for terminal illness, and adult day care does not provide daily skilled nursing.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #7
Which of the following is an example of misuse of healthcare services?
Correct answer: D
Explanation
Misuse is an error or avoidable complication in the delivery of appropriate care, such as a harmful drug interaction. An unnecessary MRI is overuse, while omitted controller therapy and a postponed screening are underuse. Medical management works to reduce all three.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #8
The Pinecrest Health Plan intends to delegate the credentialing of its network physicians to Harlan Health System. Which step should Pinecrest take FIRST?
Correct answer: D
Explanation
Before delegating, the plan evaluates whether the prospective delegate can perform the function to standard. Only then is a written agreement executed, with ongoing monitoring. Accountability stays with the plan, so shifting it on paper to the delegate is not an option.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #9
The Ridgefield Health Plan mails reminder letters each year to women aged 50 to 74 who have no breast symptoms and covers screening mammography for them at no cost share. The goal is to detect breast cancer at an early, more treatable stage. This program is best classified as
Correct answer: C
Explanation
Secondary prevention detects disease early in people who have no symptoms, so that treatment can begin sooner. Screening mammography fits this definition. Primary prevention would aim to keep the disease from occurring, such as immunization, and tertiary prevention would limit disability in members who already have an established disease.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Question #10
The Medicaid program is financed by
Correct answer: C
Explanation
Medicaid is a joint federal-state program. The federal government pays a share of each state's program costs based on a matching formula. Payroll taxes into trust funds are associated with Medicare Part A, not Medicaid.
Continue with AHM-540: Medical Management
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in AHM-540: Medical Management, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
Discussion
Explain your reasoning, not just the letterOther AHIP certifications
- HCAFA — Health Care Anti-Fraud Associate (opens in a new tab)
- PAHM — Professional, Academy for Healthcare Management (opens in a new tab)
- FAHM — Fellow, Academy for Healthcare Management (opens in a new tab)
- AHM-250: Healthcare Management: An Introduction (opens in a new tab)
- DIF — Disability Income Fellow (opens in a new tab)
- AHM-530: Network Management (opens in a new tab)
- DHP — Disability Healthcare Professional (opens in a new tab)
- DIA — Disability Income Associate (opens in a new tab)
- AHM-520: Health Plan Finance and Risk Management (opens in a new tab)
- HCP — Healthcare Compliance Professional (opens in a new tab)
- HCSA — Healthcare Customer Service Associate (opens in a new tab)
- DBA — Dental Benefits Associate (opens in a new tab)
Reviews
Write a review★★★★★
Exam Practice is worth every penny. The mock exams are realistic, and the feedback helped me focus on key areas.
Amit SharmaVerified buyer
★★★★★
I highly recommend Exam Practice. The feedback after each test helped me improve significantly, and I passed my exams easily.
Oscar NyströmVerified buyer
★★★★★
This platform is a lifesaver. The practice questions and explanations are so detailed. It’s the best study tool I’ve ever used.
Hannah SmithVerified buyer
FAQ
Learn More: https://www.ahip.org/courses
- Q1: What is the AHM-540: Medical Management exam?
- A: AHM-540: Medical Management is a AHIP certification exam. Judging by the questions in our bank, it concentrates on care, medical, paragraph, medicaid and healthcare.
- Q2: What topics does the AHM-540: Medical Management exam cover?
- A: Questions in our AHM-540: Medical Management bank cluster around care, medical, paragraph, medicaid, healthcare, choice, martinez and programs. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for AHM-540: Medical Management?
- A: Work through the AHM-540: Medical Management practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real AHM-540: Medical Management exam questions?
- A: They are drawn from officially released past questions and from community members who have sat AHM-540: Medical Management. Answers are verified and updated weekly.
- Q5: Where do I register for the AHM-540: Medical Management exam?
- A: Register through AHIP directly. Exampractice is not affiliated with AHIP and does not administer the exam.
- Q6: Is there a free AHM-540: Medical Management sample?
- A: Yes. Every AHM-540: Medical Management page shows a free sample of real questions. Upgrading opens the full bank and the practice test.
- Q7: What are AHIP Certification Exams?
- A: AHIP (America's Health Insurance Plans) Certification Exams validate your expertise in health insurance and related fields, demonstrating your knowledge of Medicare, Medicaid, compliance, fraud prevention, and the healthcare market.
- Q8: Why should I pursue AHIP Certification?
- A: AHIP Certification enhances your professional credibility, showcasing your skills and knowledge in health insurance. This can lead to better job opportunities, higher salaries, and career advancement in the healthcare insurance industry.
- Q9: What are the benefits of AHIP Certification?
- A: Benefits include recognition as a certified health insurance professional, improved job performance, access to exclusive resources, continuing education opportunities, and the ability to stay current with the latest industry trends and regulatory changes.
- Q10: Who should take AHIP Certification Exams?
- A: Health insurance professionals, agents, brokers, compliance officers, and anyone involved in selling or managing health insurance products should consider these certifications to validate their expertise and advance their careers.
- Q11: What types of AHIP Certification Exams are available?
- A: AHIP offers various certification paths, including Medicare Training, Fraud, Waste & Abuse Training, and other specialized courses tailored to specific roles and expertise levels in health insurance.
- Q12: How do I prepare for AHIP Certification Exams?
- A: Preparation can include official AHIP training courses, study guides, practice exams, webinars, and hands-on experience in health insurance sales and management.
- Q13: Where can I take AHIP Certification Exams?
- A: AHIP Certification Exams are typically taken online, providing flexibility to fit your schedule and location.
- Q14: How do AHIP Certifications impact my career?
- A: AHIP Certifications significantly boost your career by demonstrating your expertise to employers, making you a more competitive candidate for advanced roles and promotions in the health insurance industry.
- Q15: Are there any prerequisites for AHIP Certification Exams?
- A: Some exams may have prerequisites, such as foundational knowledge or prior certifications. Check the specific requirements for each certification path on the AHIP website.
- Q16: How often do I need to recertify for AHIP Certifications?
- A: AHIP Certifications typically require annual recertification to ensure that certified professionals stay updated with the latest health insurance practices and regulatory requirements.



