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The Northwest Company offers its employees the option of choosing to receive their healthcare benefits from an HMO or from a traditional indemnity plan. The premiums for the HMO are lower than for the traditional indemnity plan. In this situation, it is correct to assume that:
Individual low utilizers are more likely to enroll in the traditional indemnity plan
Individual high utilizers are more likely to enroll in the HMO
Suggested Answer: D
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9 comments · newest first
LA
Lashawn
1 year ago
But what if someone just wants more flexibility? Indemnity could be better.
EL
Elise
1 year ago
Totally agree, the HMO makes more sense for those who use healthcare often.
KI
Kimbery
1 year ago
Wait, are low utilizers really going for the indemnity plan? Seems odd.
CH
Chu
1 year ago
I think high utilizers would prefer the HMO for better access.
BO
Bobbye
1 year ago
HMO premiums are definitely lower!
KA
Kathrine
1 year ago
Wait, I'm a little confused. Is the answer "what isn't"? Or maybe "what will cost less"? I'll have to re-read the question and options again to make sure I understand it properly.
VE
Venita
1 year ago
I've got this! The HR profile definitely contains personal employee data, not group membership or login info. Easy peasy, option A is the way to go.
RE
Rene
1 year ago
I think option A makes sense because if they can borrow at a lower rate, it gives them room to offer discounts like that.
CA
Cammy
1 year ago
This looks straightforward, I think I can handle it.