A Company Switches from a Medical Plan That Covered All

Multiple Choice

A company switches from a medical plan that covered all medical costs to a medical plan with a high deductible, making employees responsible for the first $1,500 of health care costs. Other things the same, a higher deductible is expected to:

A) reduce both medical claims and hospital admissions.
B) increase both medical claims and hospital admissions.
C) reduce medical claims and increase hospital admissions.
D) increase medical claims and reduce hospital admissions.