Final answer:
A single deductible applied to both medical and dental insurance coverage is referred to as an integrated deductible, and this statement is True. Deductibles, copayments, and coinsurance are methods to share costs and reduce moral hazard in health insurance policies.
Step-by-step explanation:
The concept of an integrated deductible refers to a single deductible that applies to multiple types of coverage. When a single deductible is used for both medical and dental insurance coverage, policyholders only need to meet one out-of-pocket maximum before their insurance kicks in for both types of care. The statement that an integrated deductible is a single deductible applied to both medical and dental insurance coverage is True.
Understanding insurance terms like deductibles, copayments, and coinsurance is crucial because these elements impact the out-of-pocket expenses for the insured. Deductibles are the amounts that policyholders must pay before their insurance coverage starts to pay. Copayments are fixed fees for services, and coinsurance is a percentage of costs that the policyholder is responsible for. These measures are intended to reduce moral hazard by ensuring that policyholders have a financial stake in their own healthcare expenses.