Question

Which answer uses the terms premium, deductible, and out-of-pocket maximum correctly? a. You pay a monthly premium for your health insurance. You pay for health services until you meet your deductible. Once you meet your out-of-pocket maximum, your insurance pays the rest of your health care costs for that year. b. You pay a monthly deductible for your health insurance. You and your health insurance company share health care costs by paying separate premium costs. Once you meet your out-of-pocket maximum, your insurance company pays your health care costs except for your copays. c. You pay a monthly premium for your health insurance. Your insurance will cover a specific percentage of your health insurance costs up to an out-of-pocket maximum. Once you have reached your maximum limit, your only out-of-pocket expense is your deductible. d. You pay a monthly deductible for your health insurance. When you use your health insurance, you will pay your premium out-of-pocket. Once you meet your out-of-pocket maximum for the year, your insurance will pay the remaining amount of your healthcare costs.

Answer 1

Option a) correctly uses the terms premium, deductible, and out-of-pocket maximum, describing the basic costs associated with health insurance coverage.

Step-by-step explanation:

The premium is the monthly cost you pay to have health insurance. The deductible is the amount you must pay out-of-pocket before your insurance begins to cover costs.

After your spending on healthcare reaches the out-of-pocket maximum, your insurance company takes over payments for covered services for the remainder of the year.

The answer that uses the terms premium, deductible, and out-of-pocket maximum correctly is: a). You pay a monthly premium for your health insurance. You pay for health services until you meet your deductible. Once you meet your out-of-pocket maximum, your insurance pays the rest of your health care costs for that year.

This statement accurately describes the financial responsibilities involved in a health insurance policy.