Medical Insurance 7th Edition by Amy Blochowiak, Joanne Valerius, Nenna Bayes, Cynthia Newby

Question

Medical Insurance 7th Edition by Amy Blochowiak, Joanne Valerius, Nenna Bayes, Cynthia Newby

Edition 7ISBN: 978-1259683077

Medical Insurance 7th Edition by Amy Blochowiak, Joanne Valerius, Nenna Bayes, Cynthia Newby

Edition 7ISBN: 978-1259683077

Exercise 1

Select the answer choice that best completes the statement or answers the question.
Which of the following combines a health plan that has a high deductible and low premiums with a special "savings account" that is used to pay medical bills before the deductible has been met?
A) CDHP
B) HMO
C) PPO
D) EHR

Step-by-step solution

Verified

Step 1 of 2

The description provided matches the features of a Consumer Directed Health Plan (CDHP), which includes a high deductible plan coupled with a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA) to pay for healthcare expenses before the deductible is met. HMO and PPO are traditional health insurance plans that do not offer such special savings accounts. EHR (Electronic Health Record) is a digital record-keeping system for patients' health information and not related to insurance plans.

Step 1 of 2

The option that combines a high deductible health plan with a savings account is CDHP (Consumer-Driven Health Plan). HMO and PPO are types of health insurance plans that do not involve a savings account or high deductible. EHR (Electronic Health Record) is a digital record of a patient's medical history kept by healthcare providers.