Question

Your parents tell you that on your 22nd birthday, they would like for you to get your own health insurance. You are very healthy, are not

taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to
be best for you?
A low deductible plan with a high monthly premium
O A high deductible plan with a low monthly premium
OA low deductible plan with low co-pays on prescription medicine with high monthly premiums
O The health insurance plan with the highest monthly premium to ensure high quality service

Answer 1

A high deductible plan with a low monthly premium would offer you the most cost-effective option.

Step-by-step explanation:

Since you are healthy, not taking any prescription medicines, and only visiting your doctor for an annual physical, you have relatively low healthcare needs. In this case, a high deductible plan with a low monthly premium would offer you the most cost-effective option.

With a high deductible plan, you will have a higher out-of-pocket expense before the insurance coverage kicks in. However, since you have minimal healthcare needs, this higher deductible is less likely to be a financial burden. The low monthly premium allows you to save on the cost of insurance since you don't anticipate needing extensive coverage.