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A low-income family had multiple medical appointments with specialists over a three-month period, resulting in high out-of-pocket expenses. After reaching a certain threshold, their out-of-pocket medical costs were significantly reduced for the remainder of the calendar year.
Which of the following enabled this reduction in medical costs?
\(A\)
Consider Option A: Medicare Safety Net
→ Provides additional benefits once an annual threshold of out-of-pocket expenses is reached
→ Reduces the gap between Medicare benefit and doctor’s fees
→ Applies for the remainder of the calendar year
Why other options are incorrect:
→ Private health insurance requires upfront premium payments and wouldn’t automatically reduce costs after a threshold
→ Health care concession card provides consistent discounts but doesn’t have a threshold mechanism
→ Bulk billing incentive is a payment to doctors and doesn’t directly affect patient out-of-pocket costs
\(\Rightarrow A\)