In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. Leroux Health Insurance Plan A Proposed Changes Cost: Monthly Premium: $248.00 $203.00 Annual Deductible: $ 5,500.00 $8,500.00 Co-pays: Brand-name Prescriptions $35.00 $30.00 Generic Prescriptions $15.00 $10.00 Visits: Primary Care Physician: $40.00 $30.00 Specialist: $60.00 $45.00 Urgent Care: $125.00 $90.00 Emergency Room: $325.00 $250.00 If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs? a. Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured. b. Costs for regularly scheduled health care will go up, but Kevin will probably pay less than he would have if he finds himself seriously ill or injured. c. Both the cost for regularly scheduled health care and the cost for emergency health care will go down, making the changes very good for Kevin. d. Both the cost for regularly scheduled health care and the cost for emergency health care would go up, contradicting the intentions of Leroux Insurance.

ANSWER:
A.
Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

Option (a) is correct. The costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

Further explanation:

Co-pay:

The co-pay is an out-of-pocket cost that is paid by the insured person. The insured person does not get reimbursement for the co-pay services. The insurance agencies charge co-par for the prescriptions and doctor's visit. The co-pay may vary from the insured person to another because the charges for the prescriptions and doctor's visit may vary.

Effect of the proposed changes on the health care cost:

The proposed change will decrease the monthly premium. However, it will increase the annual deductible. Thus, the health care cost will decrease in the normal course of action but Kevin will end up paying more if he falls sick because the annual deductible has increased. The deductible is paid by the insured person for the health care services before the insurance company starts to pay. It means that Kevin has to pay more from his pocket.

Thus, option (a) is correct. The costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

Learn more:

Learn more about the out-of-pocket expenses https://brainly.com/question/1362335
Learn more about the insurance rule https://brainly.com/question/6075135
Learn more about the insurance cover https://brainly.com/question/7325538

Answer details

Grade: Senior School

Subject: Business Studies

Chapter: Insurance

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