Which plan would a patient choose if they want the cheapest monthly cost but are willing to have high upfront costs?

Which plan would a patient choose if they want the cheapest monthly cost but are willing to have high upfront costs?

• A. HDHP
• B. HMO
• C. PPO
• D. POS

Answer: (A)

To pay the least each month while being willing to cover a large upfront amount, you’d choose a plan with a low ongoing premium and a high deductible. A high-deductible health plan fits this scenario: it charges a relatively low monthly premium, but you’re responsible for most costs out of pocket until you reach a high deductible. Many HDHPs pair with a health savings account (HSA), which lets you set aside pre-tax money to cover those upfront costs, further reducing net expense. In contrast, plans like HMO, PPO, or POS generally have higher monthly premiums, even though you may pay less when you actually use care after meeting a smaller deductible.

To pay the least each month while being willing to cover a large upfront amount, you’d choose a plan with a low ongoing premium and a high deductible. A high-deductible health plan fits this scenario: it charges a relatively low monthly premium, but you’re responsible for most costs out of pocket until you reach a high deductible. Many HDHPs pair with a health savings account (HSA), which lets you set aside pre-tax money to cover those upfront costs, further reducing net expense. In contrast, plans like HMO, PPO, or POS generally have higher monthly premiums, even though you may pay less when you actually use care after meeting a smaller deductible.