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 payment of $500 per year before insurance coverage kicks in is known as a deductible. This amount must be met by the patient before the insurance company starts to pay for covered expenses.
Option A, coinsurance, refers to the percentage of costs the patient pays after the deductible is met, not the initial payment.
Option B, copayment, is a fixed amount paid for specific services, rather than an annual threshold.
Option D, fee-for-service, describes a payment model based on individual services provided, not a specific annual payment.
Option E, premium, is the regular payment made to maintain insurance coverage, separate from out-of-pocket expenses like deductibles.
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