Generally, plans with lower monthly premiums have higher deductibles. True False
Answer (1)
The statement 'Generally, plans with lower monthly premiums have higher deductibles' is True .
Here's how health insurance plans typically work:
Premium : This is the amount you pay for your health insurance every month. It is similar to paying a membership fee to be part of an insurance plan.
Deductible : This is the amount you pay for healthcare services before your health insurance begins to pay. For example, if your deductible is $1,000, you must pay the first $1,000 of your medical bills yourself.
Insurance plans often balance these two elements, which means:
Plans with lower premiums usually come with higher deductibles . This setup means you pay less each month, but you will have higher out-of-pocket costs when you access medical services.
Conversely, plans with higher premiums often have lower deductibles . While you pay more each month, your out-of-pocket costs when you need medical care are typically less.
This trade-off allows consumers to choose plans based on their financial situation and healthcare needs. If you expect to need lots of medical care, it might be better to choose a plan with a higher premium and lower deductible. If you seldom visit the doctor, a lower premium plan with a higher deductible might save you money.
