Long Term Care Certification Practice Test

All of the following factors can reduce a policyholder's premium EXCEPT?

1. Limit services to Medicare approved facilities

2. Opting for a higher deductible

3. Healthy lifestyle choices

4. Choosing a shared room option

The correct answer is: Limit services to Medicare approved facilities

The factor that does not contribute to reducing a policyholder's premium is limiting services to Medicare-approved facilities. Typically, insurers operate on a broader network that includes various healthcare providers beyond just those approved by Medicare. While limiting services may reduce overall healthcare costs for the insurer, it does not directly impact the premium charged to the policyholder in the same way that the other options do. On the other hand, opting for a higher deductible is a common strategy that reduces premiums because the policyholder agrees to take on more initial costs before insurance coverage kicks in. Similarly, maintaining a healthy lifestyle can lower premiums since insurers often reward health-conscious individuals with lower rates due to reduced risk of claims. Choosing a shared room option can also reduce premiums as it decreases the costs associated with private room accommodations in long-term care settings. Each of these choices directly influences the risk and financial responsibility shared between the insurer and the insured, consequently leading to lower premium rates.