16. A member, covered under an HMO plan, had a 7 day non-emergent inpatient stay at a hospital not in the health plans network. The total charges for the stay were $42,000. The inpatient rate at in-network hospitals is a per diem of $1,000. What payment is the hospital entitled to?

A. $10,000

B. $7,000

C. $42,000

D. $25,000

18.True or False: Non-profit health plans must set the premium to equal the total medical cost to ensure the organization earns no profit:

A. True

B. False