Which of the Following Health Insurance Policies Is Most Likely

question 40

Multiple Choice

Which of the following health insurance policies is most likely to lead to the optimal consumption of health care services?

• A) Copayments are 50%,but there is no deductible.
• B) Copayments are 0%,and there is no deductible.
• C) Copayments are 25% until the insured individual pays $5,000,after which the copayment is 0%.
• D) There is a $5,000 deductible,after which the copayment is 0%.

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Definitions:

Specific Time

Denotes a precise moment or period that is identified for the occurrence of an event or action.

Non-Recourse

Pertaining to a loan or obligation where the lender's recovery, in the event of default, is limited to the collateral securing the loan, with no further claim on the borrower’s assets.

Money Orders

A payment order for a pre-specified amount of money, similar to a check, that is widely used for safe transfers of funds.

Promissory Notes

Written promises to pay a specified sum of money to a named party, under specified conditions.