Tennessee Insurance Practice Exam

Which of the following is often included in a Major Medical policy to manage costs?

1. Health savings account options

2. Network restrictions

3. Exclusions for pre-existing conditions

4. All of the above

The correct answer is: All of the above

A Major Medical policy often incorporates various strategies to manage healthcare costs effectively, which is why it can include all of the mentioned features. Health savings account options are included to provide a tax-advantaged way for policyholders to save for medical expenses. This encourages individuals to take a more proactive approach to their healthcare spending, helping to manage costs for both the insurer and the insured. Network restrictions are another common aspect of Major Medical policies. Insurers typically create networks of preferred providers, and when policyholders utilize these in-network facilities or healthcare providers, they can take advantage of lower co-payments and out-of-pocket expenses. This incentivizes the use of a more regulated and cost-effective healthcare delivery system. Exclusions for pre-existing conditions serve as a cost management tool by allowing insurers to avoid covering conditions that existed before the policy inception. This often helps to keep premiums at a manageable level and encourages policyholders to maintain overall health. Since each of these elements contributes to the cost management strategy of Major Medical policies, it’s clear why they are all integral components of such plans.