The ability to accurately predict yearly expenses was one reason that large companies decided to
a. offer HMO programs
b. enroll in managed care plans
c. self-insure their employees
d. offer medical spending plans
My goodness! Is none of this information in your text?
C- self insure their employees
I made a 100% on my exam!
To determine the correct answer among the options provided (a, b, c, or d), let's analyze each option and its relevance to accurately predicting yearly expenses for large companies:
a. Offer HMO programs: HMO (Health Maintenance Organization) programs primarily focus on providing healthcare services through a network of doctors and hospitals. While these programs may result in cost savings for both employers and employees, they are not directly tied to predicting yearly expenses.
b. Enroll in managed care plans: Managed care plans are healthcare insurance plans that help control costs by requiring participants to use specific providers and obtain preauthorization for certain services. While these plans may have cost containment measures, they do not directly address the ability to predict yearly expenses.
c. Self-insure their employees: Self-insuring involves large companies assuming the financial risk for providing healthcare benefits to their employees. By self-insuring, companies can gain more control over their healthcare expenses, leading to the potential for better prediction and management of yearly costs. Therefore, this option is relevant to the ability to accurately predict yearly expenses.
d. Offer medical spending plans: Medical spending or healthcare spending accounts, such as Health Reimbursement Arrangements (HRAs) or Flexible Spending Accounts (FSAs), allow employees to set aside pre-tax dollars to pay for eligible medical expenses. While these plans offer tax advantages and cost control for employees, they do not directly address the ability of large companies to predict yearly expenses.
Based on the analysis, the option that directly relates to accurately predicting yearly expenses is c. self-insure their employees.