New York Insurance Exam Practice Question
Which type of health insurance plan typically has the lowest premiums?
Correct Answer: D
Rationale: High-deductible health plans (HDHPs) typically feature lower premiums due to their higher out-of-pocket costs, which encourage individuals to use healthcare services more judiciously.
HMO plans usually have lower out-of-pocket costs but require members to use a network of providers, often resulting in higher premiums. PPOs offer more flexibility in choosing healthcare providers but come with higher premiums due to this added convenience. POS plans combine features of HMOs and PPOs, often leading to moderate premiums that are still higher than those of HDHPs. Thus, HDHPs stand out for their affordability in terms of premiums.
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