Question

25. With insurance plans that have large deductibles: Select one:

a. Premiums can be reduced dramatically

b. Premiums are reduced modestly

c. Premium are increased dramatically

d. Premiums are increased modestly

Answer 1

ANSWER:-

(a) premiums can be reduced dramatically.

* Insurance plans with high deductible have lower premiums.

* Higher the deductible lower the premium.

* dramatically means( here)by a strikingly large amount .

* modestly means to a relatively small degree.

* so when the deductible is higher it reduce premium in a relatively large amount.

EXAMPLE :

	HDHP	NON- HDHP
Deductible	3000	1500
Premium	1500	3000
Total	4500	4500

HDHP - High deductible health plans

NON HDHP- non high deductible health plans

*Table shows if the deductible is $3000 premium is reduced to $1500, and if deductible is $1500 premium increases to $3000.