Which of the Following Statements About the Decision to Purchase

question 35

Multiple Choice

Which of the following statements about the decision to purchase insurance is true?

• A)You will not be able to know which decision was the right one to make until you can use hindsight.
• B)The decision must be made in consideration of the best information available at the time.
• C)The cost of the insurance should be weighed against the benefit of payouts over the life of the contract.
• D)None of these are true.

---

Definitions:

Third-party Payer

An entity (other than the patient or healthcare provider) that pays for healthcare services, typically an insurance company.

Recovery Audit

The process of reviewing financial transactions and records to ensure compliance with policies and to recover overpayments or incorrect charges.

Underpayment

The act of paying less than what is due for a service, bill, or obligation.

Claim Denial

Occurs when an insurance company refuses to pay for healthcare services, often due to ineligibility or lack of coverage.