Clinical Medical Assistant Certification Exam Practice Question
A patient must pay $500 per year for medical expenses before the Insurance company will begin to cover any expenses. Which of the following terms describes this payment?
Correct Answer: C
Rationale: The term that describes the $500 annual payment a patient must make before the insurance coverage kicks in is "deductible." This is the amount that must be paid out-of-pocket before the insurer starts to cover expenses.
- **A: Coinsurance** refers to the percentage of costs a patient pays after the deductible has been met, not the initial payment.
- **B: Copayment** is a fixed amount paid for specific services at the time of care, not an annual threshold.
- **D: Fee-for-service** is a payment model where providers are paid for each service rendered, unrelated to the patient's out-of-pocket costs.
- **E: Premium** is the regular payment made to maintain insurance coverage, separate from deductible payments.
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