Question

What is plan FH and what must the beneficiary pay?

A) Plan FH does not exist

B) Plan FH covers all costs

C) Plan FH is a limited coverage plan; The beneficiary pays copayments, coinsurance, and deductibles

D) Plan FH is a comprehensive coverage plan; The beneficiary pays nothing

Answer 1

The correct answer is A) Plan FH does not exist. However, terms related to insurance such as deductibles, copayments, and coinsurance were explained, as they are essential concepts in understanding health insurance policies.

Step-by-step explanation:

The question refers to a hypothetical insurance plan labeled as 'Plan FH', which does not correspond to any commonly known insurance plan or structure. Therefore, the most accurate answer would be A) Plan FH does not exist. However, it is worth explaining key terms such as deductibles, copayments, and coinsurance as these are fundamental components of many real insurance policies.

A deductible is an amount that the policyholder must pay out-of-pocket before their insurance coverage begins to pay. A copayment is usually a fixed fee that the policyholder pays for a specific service or prescription. Coinsurance is the percentage of costs that the policyholder must pay even after the deductible has been met. All these elements serve to share costs between the insurer and the insured, thereby reducing moral hazard and incentivizing more responsible use of medical services.