Question

Co-insurance and deductibles are forms of patient cost-sharing
A) True
B) False

Answer 1

Co-insurance and deductibles are forms of patient cost-sharing in health insurance policies.

Step-by-step explanation:

Co-insurance and deductibles are indeed forms of patient cost-sharing.

Making use of these forms of cost sharing such as deductibles, copayments, and coinsurance is one way to reduce moral hazard in health insurance. These forms of cost-sharing require the insured party to bear some of the costs before receiving insurance benefits.

For example, a deductible is the maximum amount that the policyholder must pay out-of-pocket before the insurance company pays the rest of the bill. A copayment is a flat fee paid by the policyholder before receiving services, and coinsurance requires the policyholder to pay a certain percentage of costs.