As a consumer, you subscribe to a health plan with...

As a consumer, you subscribe to a health plan with relatively low premiums but a very high catastrophic cap. You are expected to pay for most services out of your own pocket and are rewarded with tax breaks for saving money to pay for your own care. Your plan is best described as: A. A health maintenance organization B. Indemnity insurance C. A preferred provider organization D. A high-deductible health plan

Transcript

00:01 Okay, so we're going to be doing a quick analysis here around the insurance cover.

00:07 These three sets of information that is provided that will need to check whether is true or false.

00:21 All right.

00:22 So the first statement regards the loading costs.

00:27 Okay so we are going to be looking at the first statement regarding loading costs and the statement reads that load okay um which one of the following statement is true okay so as the expected loss increases the gain from insurance decreases obviously this does not make sense low loading cost partly explain why it is difficult for the self -employed to get health insurance obviously not true.

01:00 Increased lowering costs may increase insurance coverage for certain groups.

01:07 That absolutely is correct, but just to read the fourth one to see if that corresponds.

01:14 Consumers are willing to pay less to avoid risk in cases where an adverse event is almost certain occur.

01:22 Obviously not making sense.

01:24 The esoc is the correct answer.

01:27 These loading costs may actually increase insurance coverage.

01:36 Okay, may increase insurance coverage.

01:44 Okay, so that's basically it.

01:47 I understand that when we're talking of loading costs, we're looking those additional costs that are built into the insurance policy.

01:55 Obviously, to cover the losses, we, you know, we are anticipating to cover the, you know, the losses which are higher than anticipated, you know, especially looking at the, you know, for the company arising.

02:21 Okay, so these are additional costs built into insurance policy to cover losses which are higher than anticipated for the company arising from the insurance.

02:33 From ensuring a person who is prone to a form of risk.

02:39 So basically, that's what you mean by loading costs.

02:44 And obviously, the answer c of the options given is the only one that happens to be true in this particular instance...

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