Asked by Priya Puppala on Jun 19, 2024
Verified
What does a co-payment or deductible incentivize an individual to do?
A) Pay for a higher coverage amount.
B) Pay a lower premium.
C) Refrain from making claims.
D) Decrease the number of insurance policies an insured has.
E) Shop around for the best coverage.
Co-payment
A fixed amount paid by a health insurance plan member for covered services, with the remainder being covered by the insurance.
Deductible
The amount paid out of pocket by the policyholder before an insurance policy begins to pay.
Incentivize
To provide motivation or encouragement through rewards or benefits, aiming to promote certain behaviors or actions.
- Acquire knowledge about the categories and aims of diverse insurance payments, such as premiums and co-payments.
Verified Answer
AD
Austin DeBerryJun 20, 2024
Final Answer :
C
Explanation :
Co-payments and deductibles are out-of-pocket costs that the insured must pay before their insurance coverage kicks in for a claim. These costs incentivize individuals to refrain from making minor or unnecessary claims to avoid paying these amounts.
Learning Objectives
- Acquire knowledge about the categories and aims of diverse insurance payments, such as premiums and co-payments.
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