Question

It's open enrollment for employee benefits, and Erika is trying to pick a health insurance plan. She thinks a health savings account is a good fit for her financial goals. To be eligible for a health savings account, she must also select a health insurance plan with a high

a) Deductible
b) Premium
c) Co-payment
d) Coverage limit

Answer 1

Erika must select a health insurance plan with a high deductible to be eligible for a health savings account, which allows her to save money for future medical expenses and enjoy lower premiums.

Step-by-step explanation:

To be eligible for a health savings account (HSA), Erika must select a health insurance plan with a high deductible. A deductible is the amount that policyholders must pay out of their own pocket before their insurance coverage begins to pay for any services. In contrast to a deductible, a copayment is a flat fee paid at the time of service, and coinsurance is a percentage of the cost that the insured pays after the deductible is met. High-deductible plans are specifically designed to allow policyholders to save money in an HSA, to be used for qualified medical expenses. This option encourages individuals to save for future health care needs while also offering them lower premiums compared to plans with lower deductibles.