Question

What is health insurance?

a) Agreement between a patient and a healthcare provider that says the patient will pay for all medical expenses
b) Agreement between a healthcare provider and a health insurance company that says the company will pay a portion of the provider’s medical expenses
c) Agreement between a patient and a health insurance company that says the company will pay a portion of the patient’s medical expenses.

Answer 1

Health insurance is an agreement between a patient and a health insurance company that states the company will pay a portion of the patient's medical expenses. It helps individuals manage healthcare costs by sharing the financial burden.

Step-by-step explanation:

Health insurance is an agreement between a patient and a health insurance company that states that the company will pay a portion of the patient's medical expenses. It helps individuals manage the costs of healthcare by sharing the financial burden. Health insurance plans often include deductibles, which are fixed amounts that patients must pay out of pocket before insurance coverage begins.

For example, if a plan has a $1,000 deductible, the patient would have to pay the first $1,000 of their medical expenses before the insurer starts paying.

Health insurance may also involve cost-sharing, such as co-insurance, where patients pay a percentage of costs, or co-payments, where patients pay a fixed amount for specific services.