Question

most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because
people are cautious and believe they are less likely to get sick if they have health-insurance coverage.
doctors and hospitals always provide better care to people who have health insurance.
people still feel more secure with a health insurance policy, even though out-of-pocket costs are often lower.
medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.

Explanation:

To determine the correct answer, we analyze each option:

• The first option is incorrect because having health insurance doesn't reduce the likelihood of getting sick.
• The second option is incorrect as there's no guarantee that insured people always get better care.
• The third option is incorrect because out - of - pocket costs for routine care might be lower, but for major medical events, insurance is more cost - effective, so the statement about out - of - pocket costs being often lower is misleading.
• The fourth option is correct. Medical costs for serious illnesses or hospital stays can be extremely high. In such cases, paying insurance premiums (which are spread out over time) is more affordable than paying the large lump - sum out - of - pocket costs for a hospital stay.

Answer:

D. medical costs can be extremely high, and insurance is more affordable than paying out - of - pocket for a hospital stay.