Arkansas Insurance Adjuster Practice Exam

Which of the following is NOT considered an 'out-of-pocket expense' in health insurance?

1. Deductible

2. Copayment

3. Coinsurance

4. Policy premiums

The correct answer is: Policy premiums

Policy premiums are not considered an 'out-of-pocket expense' in health insurance because they are usually paid upfront on a monthly, quarterly, or annual basis, rather than being paid out as needed for medical services. Deductibles, copayments, and coinsurance are all forms of cost-sharing between the insured and the insurance company for medical services. Deductibles are the amount you have to pay before your insurance starts covering costs, copayments are fixed amounts that you pay per medical service, and coinsurance is a percentage of the cost of a medical service that you are responsible for paying.