Which of the following statements about insurance plans and premium rate setting is most correct? A...

Which of the following statements about insurance plans and premium rate setting is most correct?

A	Insurers set premium rates to include both the costs of providing healthcare services and the costs of providing (administering) the insurance plan, including profits.

B	A single method is used to set premium rates: the fee-for-service approach.

C	A single method is used to set premium rates: the cost approach.

D	Although premiums may be set using several different methods, healthcare providers are all paid on a per member per month basis.

E	None of the statements are correct.

Solutions

Expert Solution

Option.A) Insurers set premium rates to include both the costs of providing healthcare services and the costs of providing (administering) the insurance plan, including profits.

The above statement is most correct.

Thanks

jeff jeffy answered 1 year ago

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