Ashley's company provides her with three health insurance plan options. In the first option, the insurer simply pays for whatever covered medical costs she incurs, subject to the deductible and coinsurance. The second option is an HMO and the third option is a PPO. Which statement accurately describes Ashley's options?

Question

Quizplus · Accepted Answer

In this scenario, the first option is a fee-for-service arrangement, in which the insurer simply pays for whatever covered medical costs Ashley incurs, subject to the deductible and coinsurance. The second and third options are managed care arrangements, in which the health insurer pays all Ashley's costs (subject sometimes to small co-pays for office visits), but the care she receives is determined by her physician, who has contracted with the health insurer and has incentives to control overall costs.

Ashley's Company Provides Her with Three Health Insurance Plan Options