Final answer:
It is false that managed-care plans have greater out-of-pocket costs than indemnity plans. Managed-care plans usually offer lower out-of-pocket costs due to controlled provider networks, while indemnity plans may lead to higher costs but provide more freedom in choosing healthcare providers.
Step-by-step explanation:
The statement that one of the disadvantages of a managed-care plan is a greater out-of-pocket cost than with an indemnity plan is false. Managed-care plans, such as Health Maintenance Organizations (HMOs), typically require less out-of-pocket expenditure for the insured because they use a network of providers to control costs, often resulting in lower premiums, deductibles, and copayments. These cost-sharing measures help discourage moral hazard and prevent misuse of medical services while promoting cost efficiency.
Conversely, fee-for-service or indemnity plans, where medical care providers are reimbursed for each service provided, might lead to higher out-of-pocket costs. Indemnity plans typically allow more freedom to choose healthcare providers but at the cost of higher premiums or deductibles. Moreover, the phenomenon of adverse selection can occur, where individuals with higher health risks may gravitate towards more comprehensive plans, potentially increasing the costs for those plans.