Health Insurance

Question 1 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Which of the following is not a way health insurance helps to save you money?

Answer

In many cases, your employer will pay a certain portion of your health insurance premium.

Some health care plans have made arrangements with health care providers to offer their services at a lower rate.

Many times, you only have to pay a deductible to receive goods or services. The remaining balances are paid by your insurer.

Most health care plans set a portion of your premium aside in an escrow account so that you have money available in case of a medical emergency.

Explanation

Health insurance can reduce your costs when an employer pays part of the premium, when a plan negotiates lower rates with providers, or when the insurer covers eligible costs after you meet your deductible. Premiums are generally not put into an escrow account for you to use in an emergency. Therefore, the statement about an escrow account is not a way health insurance saves you money.

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