Arizona Life and Health Practice Exam

Who has the authority to approve an "accountable health plan"?

1. The insurance company

2. The government regulatory agency

3. The insurance policyholders

4. The health plan provider

The correct answer is: The government regulatory agency

The authority to approve an "accountable health plan" rests with a government regulatory agency. These agencies are responsible for overseeing insurance practices and ensuring that health plans comply with applicable laws and regulations. This approval process usually involves evaluating how the health plan addresses accountability measures, care quality, and cost-effectiveness in order to protect consumers and ensure they have access to essential health services. While insurance companies create and offer health plans, their proposals must meet the standards set by regulatory bodies before they can be sold to consumers. Policyholders themselves do not have the power to approve these plans, as that function is reserved for regulatory authorities tasked with consumer protection and oversight of the insurance market. Similarly, health plan providers may develop the plans, but their implementation requires approval from the governing agencies to ensure compliance with health care laws and regulations.