Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?Leroux Health InsurancePlan A Cost: Monthly Premium: $248.00 Annual Deductible: $5,500.00 Co-pays: Brand-name Prescriptions $35.00 Generic Prescriptions $15.00 Visits: Primary Care Physician: $40.00 Specialist: $60.00 Urgent Care: $125.00 Emergency Room: $325.00
Answer
A
Reduce the monthly premium but increase the co-pay amounts to compensate for the lower premium.
B
Reduce the annual deductible, but increase the co-pay amounts so that the monthly premium can stay the same.
C
Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.
D
Reduce the co-pay amounts but increase the monthly premium to compensate for the lower deductible.
Explanation
Prescription and office-visit costs are paid through co-pays, so lowering those co-pays makes regular care less expensive for the insured individual. To keep the monthly premium from increasing, Leroux could raise the annual deductible, shifting more costs to the insured before coverage applies. This matches the choice to reduce co-pays and increase the annual deductible.
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