If a plan has a High deductible and lower monthly premiums, what is this plan most consistent with?

• A. High deductible, lower monthly premiums.
• B. Low deductible, lower annual costs.
• C. High premiums with low deductible.
• D. No deductible with unlimited coverage.

Answer: (A)

This item tests how deductible size relates to monthly premiums. When a plan has a high deductible, you’re taking on more out-of-pocket costs before the insurer starts paying, so the insurer can charge you a lower ongoing price each month. That combination—a high deductible with lower monthly premiums—is typical of high-deductible health plans (often paired with a Health Savings Account), where you save on regular payments but accept higher costs if you need care before meeting the deductible. You’d choose this when you want lower monthly costs and are comfortable paying more upfront if you need care.

Why the other patterns don’t fit: a low deductible usually comes with higher premiums to offset the insurer’s greater coverage upfront; high premiums with a low deductible would not align with “lower monthly premiums”; and no deductible with unlimited coverage would imply much higher ongoing costs, not the lower monthly payments described.