Question

What $ amount causes the client to enter Catastrophic Coverage and what will the beneficiary pay while in Catastrophic Coverage?

A) $3,000; 5%
B) $5,000; 20%
C) $7,000; 15%
D) $10,000; 25%

Answer 1

Catastrophic Coverage is reached when the client's out-of-pocket expenses reach a certain amount. Option D) $10,000; 25% is the correct answer.

Step-by-step explanation:

In the context of health insurance, Catastrophic Coverage is a phase of coverage where the beneficiary has reached a high threshold of out-of-pocket expenses. To enter Catastrophic Coverage, one must spend a certain amount of money on covered healthcare services.

Based on the given options, the correct answer is D) $10,000; 25%. This means that once the client's out-of-pocket expenses reach $10,000, they will enter Catastrophic Coverage. While in Catastrophic Coverage, the beneficiary is responsible for paying 25% of the cost of covered healthcare services.