Which of the following statements regarding private health insurance plans is true?
A) With a fee-for-service plan, the health care provider is the same as the insurer.
B) With a traditional indemnity plan, the premium cost is low if it is a high-deductible plan.
C) With a managed care plan, the employer contracts with the health care provider.
D) With a traditional indemnity plan, the insured pays 80% of the eligible health care expenses.
E) Group health insurance is a contract between pharmaceutical companies and the health care provider.

Question

Which of the  following statements regarding private health insurance plans is true?
A) With a fee-for-service plan, the health care provider is the same as the insurer.
B) With a traditional indemnity plan, the premium cost is low if it is a high-deductible plan.
C) With a managed care plan, the employer contracts with the health care provider.
D) With a traditional indemnity plan, the insured pays 80% of the eligible health care expenses.
E) Group health insurance is a contract between pharmaceutical companies and the health care provider.

Quizplus · Accepted Answer

Traditional indemnity plans, also known as fee-for-service plans, often offer the option of a high deductible, which can result in lower premium costs. This is because the insured assumes more of the upfront cost burden before insurance coverage begins, reducing the risk and cost for the insurer.

Which of the Following Statements Regarding Private Health Insurance Plans