You can either purchase insurance with a premium of $400 and a co-pay of $50 or purchase insurance with a premium of $450 and no co-pay. Is there a difference between these policies? Explain.(1 point) Responses Yes, because the first policy requires a flat payment of $50 any time services are received, but you would have to pay $50 less of your own money to the service provided before the insurance company will begin to pay for the service. Yes, because the first policy requires a flat payment of 50 dollars any time services are received, but you would have to pay 50 dollars less of your own money to the service provided before the insurance company will begin to pay for the service. No, because “premium” is a needless term used by insurance companies to make their co-pays look smaller. The full co-pay is effectively $450 . No, because “premium” is a needless term used by insurance companies to make their co-pays look smaller. The full co-pay is effectively 450 dollars. No, because “co-pay” is a needless term used by insurance companies to make their premiums look smaller. The full premium is effectively $450 . No, because “co-pay” is a needless term used by insurance companies to make their premiums look smaller. The full premium is effectively 450 dollars. Yes, because the first policy requires you to pay $50 less per month but would require a payment of $50 any time services are received.
Yes, there is a difference between these policies. The first policy with a premium of $400 and a co-pay of $50 means that you would have to pay $50 out of pocket each time you receive a service, on top of the premium. The second policy with a premium of $450 and no co-pay means that you would not have to pay anything out of pocket when receiving a service, but you would be paying $50 more each month in premium. Ultimately, it depends on how often you expect to use medical services and which option would be more cost-effective for you.
