Question

Which one of the following is TRUE about the concept of "coinsurance": For property insurance, the main purpose of coinsurance is to get policyholders to share costs with insurers after the deductible is reached. For health insurance, the main purpose of coinsurance is punish policyholders for under insuring. For health insurance, coinsurance is used as an incentive for policyholders to use in-network providers. None of the above are TRUE. 26. а. b. с. d. 27. Which one of the following statements is TRUE? You qualify for Medicaid according to your age. You qualify for Medicare according to your income. Medicare is administered by State governments. Medicaid funding is from both Federal and State tax revenues. None of the above are TRUE a. b. C. d. е. Angela chose to join a health plan with low cost sharing requirements if she goes to 28. physicians that are part of the insurer's network. She can choose a primary care physician that is out of the network. Angela has chosen to join: An HMO a. A PPO b. A POS с. A traditional indemnity plan None of the above. d. e. Curtis purchaseda health insurance policy. The policy has a calendar-year deductible of $500, 80-20 coinsurance, and a $5,000 cap. Curtis was hospitalized with a covered illness on January 23d. The hospitalization was his first claim for the calendar year. His medical expenses were $20,500. How much of this amount will the insurer pay, and how much will Curtis be required to pay? The insurer will pay $15,500 and Curtis will pay $5000. 29 The insurer will pay $20,000 and Curtis will pay $500 b. The insurer will pay $16,000 and Curtis will pay $4,500 The insurer will pay $5000 and Curtis will pay $15,500. с. d. None of the above e. d

Answer 1

Question 26

Health co-insurance is a way of letting the insured bear some costs of medical expenses after a set out of pocket deductible has been reached. In case of property insurance, coinsurance ensures that the insured is comprehensively covered by taking a minimum set (generally 80%) insurance on replacement value of the property. Also, co-insurance is a common phenomenon across health insurance schemes but may have different percentages based on the in-network or out-network providers.

Keeping this in mind, we can say that none of the above statements are true. Option (d)