American Academy of Professional Coders (AAPC) Practice Exam

What type of insurance plans do commercial carriers offer?

1. Only group plans

2. Only government plans

3. Both group and individual plans

4. Only individual plans

The correct answer is: Both group and individual plans

Commercial carriers typically offer both group and individual insurance plans to cater to a wide range of consumer needs and preferences. Group plans are often provided through employers, where a single policy covers multiple employees, allowing for lower premiums due to the spread of risk among many insured individuals. This type of plan is beneficial for organizations wanting to provide health benefits to their workforce. On the other hand, individual plans are available for those who do not have access to group coverage, such as freelancers or self-employed individuals. Individual plans allow consumers to select coverage that fits their personal health care needs and budget. By providing both types of plans, commercial carriers can serve a broader demographic, ensuring that various customer segments receive the insurance coverage they require, whether through employer-sponsored programs or individual purchases. This dual offering is fundamental in the insurance landscape, making the correct choice that commercial carriers indeed provide both group and individual plans.