In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.
Answer
A
the insurance company will not pay more than $6,500 for any hospital visit.
B
the insurance company will pay at most $6,500 in health care in a calendar year.
C
the insured individual must pay $6,500 in health care before the insurance company will begin to pay for his health care needs.
D
the insured individual must pay $6,500 in equal monthly installments in order for the insurance company to pay for his health care needs.
Explanation
An annual deductible is the amount the insured person pays for covered health care before the insurance company begins paying its share. Here, that amount is $6,500. It is not a cap on what the insurer pays or a required monthly installment.
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