Question

All of the following are considered major categories within the operational financials of a health insurance plan except:

a) Revenue
b) Taxes and fees
c) Sales, General and Administrative expenses
d) Medical expenditures

Answer 1

Revenue, taxes and fees, and sales, general and administrative expenses are major categories within the operational financials of a health insurance plan, while medical expenditures are not.

Step-by-step explanation:

The major categories within the operational financials of a health insurance plan include:

• Revenue: This refers to the money that flows into the insurance company through premiums and investments.
• Taxes and fees: These are additional costs that insurance companies have to pay.
• Sales, General and Administrative expenses: These are the costs of running the insurance business, such as hiring workers and processing insurance claims.

Medical expenditures are not considered a major category within the operational financials of a health insurance plan.