Question

Monica's employer offers a health insurance plan with a very high deductible. In addition, her employer provides a fund for her to spend specifically on health care. What kind of plan does she have?

1) High-deductible health plan (HDHP)
2) Preferred Provider Organization (PPO)
3) Health Maintenance Organization (HMO)
4) Exclusive Provider Organization (EPO)

Answer 1

Monica has a High-deductible health plan (HDHP) because her employer provides a plan with a high deductible along with a fund for health care expenses.

Step-by-step explanation:

If Monica's employer offers a health insurance plan with a very high deductible and also provides a fund for her to spend specifically on health care, the kind of plan she likely has is a High-deductible health plan (HDHP). These plans are characterized by higher deductibles that policyholders must pay out of pocket before the insurance coverage starts to pay. Additionally, they are often paired with a health savings account (HSA) or a health reimbursement arrangement (HRA), which are funds that can be used to pay for qualified medical expenses.