Question

As the manager in an insurance company, Emanuel is responsible for reviewing the following two plans that he will offer to the public:

1. Low-deductible, high-premium health insurance plan
2. High-deductible, low-premium health insurance plan

Required:
Which plan would someone choose if he or she were concerned that doctors may order too many tests

Answer 1

1. Low-deductible, high-premium health insurance plan

Step-by-step explanation:

The premium paid for a health insurance plan is the amount of money an individual, a family, or a company must pay for a health insurance policy.

The deductible paid on a health insurance plan is the amount paid for medical expenses as an upfront payment before the insurance company pays for the remaining medical expense.

A high-deductible health plan saves more money in the form of lower monthly premiums it gives, and it is cheaper provided the individual or group choosing this service is not someone that have medical ailments that require frequent hospital visits, and doesn't have costly medical bills.

Low deductibles have higher premiums and are best when an individual predicts seeing the doctor often or he/she is not healthy.