Question

Also known as high-deductible plans (HDPs) because the deductible is at least $1,200 per year.

A. Health Maintenance Organization (HMO)
B. Preferred Provider Organization (PPO)
C. Consumer-Driven Health Plan (CDHP)
D. Exclusive Provider Organization (EPO)

Answer 1

High-deductible plans with a minimum deductible of $1,200 are known as Consumer-Driven Health Plans (CDHPs). Unlike HMOs that pay providers a fixed amount per patient, CDHPs give members more financial responsibility and potential savings on premiums.

Step-by-step explanation:

High-deductible plans (HDPs) that have a deductible of at least $1,200 per year fall under the category of Consumer-Driven Health Plans (CDHPs). These plans are designed to give policyholders more control over their health care spending while also incentivizing them to shop for the best value for medical services since they have a higher out-of-pocket cost until the deductible is met. Meanwhile, a Health Maintenance Organization (HMO) is an alternative type of health care plan where providers are paid a fixed amount per enrolled person, a Preferred Provider Organization (PPO) offers more flexibility in choosing medical providers, and an Exclusive Provider Organization (EPO) requires members to use a network of doctors and hospitals.