Arkansas Insurance Adjuster Practice Exam

Which of the following statements regarding health insurance is TRUE?

1. Major Medical plans tend to be very restrictive regarding the selection of physicians.

2. To be covered, members of an HMO must receive treatment for their medical conditions within the established network of healthcare providers.

3. Purchasing health insurance on an individual basis can save a consumer thousands of dollars a year compared to joining a group insurance plan.

4. An HMO is usually the most expensive group insurance provider.

The correct answer is: To be covered, members of an HMO must receive treatment for their medical conditions within the established network of healthcare providers.

HMOs, or Health Maintenance Organizations, require members to receive treatment within a specific network of healthcare providers. This means that they have a limited selection of doctors and hospitals to choose from within their plan. A Major Medical plans are not as restrictive as HMOs, but they do have a preferred provider network that may have some restrictions. C: While individual health insurance plans may have lower premiums, they also typically have higher deductibles, copays, and out-of-pocket costs, which can add up to more than the cost of a group insurance plan. D: HMOs are actually known for having lower premiums compared to other group insurance providers, but this can vary depending on the specifics of the plan. Therefore, the correct answer, B, is the only statement that is entirely accurate.