Final answer:
Supplementary and comprehensive major medical plans typically both include deductibles and coinsurance. Deductibles are out-of-pocket costs before insurance pays, and coinsurance is the shared percentage of costs after deductibles are met, both reducing moral hazard.
Step-by-step explanation:
To answer the question: Do both supplementary and comprehensive major medical plans contain deductibles and coinsurance? The correct response is 1) True. Both types of plans typically include these cost-sharing elements. Deductibles are the amounts that policyholders pay out-of-pocket before the insurance starts to pay. Coinsurance is the percentage of costs the policyholder pays after the deductible is met. These features are designed to share the cost burden between the insurer and insured, thereby reducing moral hazard, which occurs when individuals are more likely to engage in risky behavior because they are insulated from the consequences.