Which statement describes network discounts?

Which statement describes network discounts?

• A. They are discounts for using out-of-network providers.
• B. They are discounts for using in-network providers.
• C. They are discounts on all services regardless of network usage.
• D. They are rebates given only to large employers.

Answer: (B)

Network discounts come from prices that a health plan negotiates with providers who are in its network. When you use an in-network provider, that provider has agreed to a lower, discounted rate for services. The plan pays less as a result, and you typically pay less out of pocket too. This is why the statement describing network discounts as discounts for using in-network providers is the best fit. If you go out of network, those negotiated discounts usually don’t apply, which can lead to higher costs or bills not covered by the plan. The other options don’t fit because they either imply discounts outside the network, or suggest rebates or universal discounts that aren’t tied to the network contracts.

Network discounts come from prices that a health plan negotiates with providers who are in its network. When you use an in-network provider, that provider has agreed to a lower, discounted rate for services. The plan pays less as a result, and you typically pay less out of pocket too. This is why the statement describing network discounts as discounts for using in-network providers is the best fit. If you go out of network, those negotiated discounts usually don’t apply, which can lead to higher costs or bills not covered by the plan. The other options don’t fit because they either imply discounts outside the network, or suggest rebates or universal discounts that aren’t tied to the network contracts.