AHIP Practice Exam

Question: 1 / 400

What is a characteristic of high-deductible health plans?

Lower premiums with higher out-of-pocket costs before coverage begins

High-deductible health plans (HDHPs) are designed with the feature of having lower monthly premiums while requiring higher out-of-pocket costs before the insurance coverage kicks in. This structure encourages individuals to take greater responsibility for their healthcare spending, as they must meet the deductible amount before the insurance begins to cover a significant portion of their medical costs.

This design often appeals to those who do not expect to incur high medical expenses and prefer to save on monthly premiums. Additionally, these plans may also be linked to Health Savings Accounts (HSAs), allowing individuals to save pre-tax dollars for medical expenses. This characteristic is fundamental to understanding how HDHPs operate and the benefits and risks they present to consumers in terms of financial planning for healthcare.

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Higher premiums with lower co-payments for services

Guaranteed acceptance regardless of health status

Unlimited coverage with no deductibles required

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