Which plan requires paying a higher deductible to cover medical expenses before insurance payments begin?

Which plan requires paying a higher deductible to cover medical expenses before insurance payments begin?

• A. POS
• B. PPO
• C. HDHP
• D. Conventional Indemnity Plan

Answer: (C)

The main idea is how much you must pay out-of-pocket before the insurer starts paying. A High-Deductible Health Plan is designed with a much higher deductible than other plans, so you pay more upfront for medical expenses before insurance contributes. It also usually comes with lower monthly premiums and is often paired with a Health Savings Account. In contrast, POS, PPO, and conventional indemnity plans typically have lower deductibles and use copays or coinsurance after meeting the deductible, so you don’t face as large an upfront out-of-pocket cost. So the plan that requires paying a higher deductible first is the high-deductible option.

The main idea is how much you must pay out-of-pocket before the insurer starts paying. A High-Deductible Health Plan is designed with a much higher deductible than other plans, so you pay more upfront for medical expenses before insurance contributes. It also usually comes with lower monthly premiums and is often paired with a Health Savings Account. In contrast, POS, PPO, and conventional indemnity plans typically have lower deductibles and use copays or coinsurance after meeting the deductible, so you don’t face as large an upfront out-of-pocket cost. So the plan that requires paying a higher deductible first is the high-deductible option.