You can either purchase insurance with a premium of $400 and a co-pay of $50 or purchase insurance with a premium of $450 and no co-pay. Is there a difference between these policies? Explain.
a) Yes, because the first policy requires a flat payment of $50 any time services are received, but you would have to pay $50 less of your own money to the service provided before the insurance company will begin to pay for the service.
b) No, because "premium" is a needless term used by insurance companies to make their co-pays look smaller. The full co-pay is effectively $450.
c) No, because "co-pay" is a needless term used by insurance companies to make their premiums look smaller. The full premium is effectively $450.
d) Yes, because the first policy requires you to pay $50 less per month but would require a payment of $50 any time services are received.
