My health care insurance company puts small co-payment fees on drugs that many people use and much higher fees for experimental drugs that only rarely are needed by individuals on our health care insurance plan.My company is applying which ethical theory?

A) ethical egoism
B) deontological theory
C) virtue-based theory
D) utilitarianism

The health care insurance company is applying utilitarianism - the ethical theory that states that the best action is the one that maximizes overall happiness or pleasure, and minimizes overall pain or suffering for the greatest number of people. By putting small co-payment fees on drugs that many people use and higher fees for experimental drugs that only rarely are needed, the company is trying to balance the needs and costs of the majority of its customers while still providing necessary services for those who need experimental drugs.