The Newfeld Hospital has contracted with the Azalea Health Plan to provide inpatient services to Azalea's enrolled members. The contract calls for Azalea to provide specific stop-loss coverage to Newfeld once Newfeld's treatment costs reach $20,000 per case and for Newfeld to pay 20% of the next $50,000 of expenses for this case. After Newfeld's treatment costs on a case reach $70,000, Azalea reimburses the hospital for all subsequent treatment costs. One true statement about this specific stop-loss coverage is that

Question

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The attachment point is the specific amount of treatment costs that must be reached before the stop-loss coverage begins, which in this case is $20,000. The other options are incorrect as the carrier is Azalea (not Newfeld), the shared-risk corridor is between $20,000 and $70,000 (not $0 and $70,000), and there is no information given about coverage for total covered medical expenses generated by the hospitalizations of Azalea plan members.

The Newfeld Hospital Has Contracted with the Azalea Health Plan