Leroux health insurance is considering changing the options in one of their health care plans (plan a) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. how can leroux reduce the costs of regular health care without driving up the price of their health care plan? leroux health insurance plan a cost: monthly premium: $248.00 annual deductible: $5,500.00 co-pays: brand-name prescriptions $35.00 generic prescriptions $15.00 visits: primary care physician: $40.00 specialist: $60.00 urgent care: $125.00 emergency room: $325.00 a. reduce the monthly premium but increase the co-pay amounts to compensate for the lower premium. b. reduce the annual deductible, but increase the co-pay amounts so that the monthly premium can stay the same. c. reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same. d. reduce the co-pay amounts but increase the monthly premium to compensate for the lower deductible. select the best answer from the choices provided a b c d mark this and retu

The answer is

c. Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.

Option © is correct. Reduction in the co-pay amounts but increase the annual deductible will have no effect on monthly premium and the cost of the health care will also decrease.

Further explanation:

Co-pay:

The co-pay is an out-of-pocket cost which is paid by the insured person. The insured person does not get the reimbursement for the co-pay services. The insurance agencies charges co-par for the prescriptions and doctors visit. The co-pay may vary from the insured person to another because the charges for the prescriptions and doctors visit may vary.

Co-pay and insurance premium relationship:

Generally, the high premium will result in the low co-pays and the low premium will result in the high co-pays.  

Reduction in the cost of health care:

The cost of the health care can be decreased by reducing the co-pay amounts and increasing the annual deductible. The deductible is paid by the insured person for the health care services before the insurance company starts to pay. The reduction in the co-pay will decrease the cost of the health care but the increase in the deductible will balance the effect of the co-pay reduction. The net effect will be zero on the monthly premium and the cost of the health care will also decrease with the decrease in the co-pay.

Therefore, option © is correct. Reduction in the co-pay amounts but increase the annual deductible will have no effect on monthly premium and the cost of the health care will also decrease.

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Answer details  

Grade: Senior School

Subject: Business Studies

Chapter: Insurance

Keywords: Leroux Health Insurance, considering, changing, options, health care plans, (Plan A), customer feedback, prescriptions, regular visits, doctor, expensive,insured individual,  reduce, costs, regular health care, without driving, up, price, their, health care plan.

step-by-step explanation: