Ben's health coverage charges a low ($15)deductible each time he visits the doctor or hospital.Other than the low per-service deductible,there is very little cost sharing.However,Ben must go to the health care providers listed by the provider of the health coverage.If he goes to a provider that is not on the list,there is very little coverage.Which of the following types of entity most likely provides Abe's health coverage?
A) HMO
B) Blue Cross/Blue Shield association
C) commercial insurer (major medical)
D) PPO
E) fee-for-service indemnity plan

Question

Quizplus · Accepted Answer

HMOs (Health Maintenance Organizations) typically have low deductibles and low cost-sharing, and restrict their members to a network of providers in order to control costs. This description matches the features of Ben's health coverage. Other options such as PPOs and fee-for-service plans usually have higher deductibles and allow more flexibility in choosing providers. Blue Cross/Blue Shield and commercial insurers may offer a variety of plans with different cost-sharing arrangements, so it is not possible to determine the type of plan just based on the name.

Ben's Health Coverage Charges a Low ($15)deductible Each Time He