What factors could lead to higher costs in a health plan?

The correct answer encompasses all the choices listed, as each factor can contribute to higher costs in a health plan in different ways.

Low premium rates may seem beneficial at first glance, but they often reflect a limited scope of coverage or higher deductibles and out-of-pocket expenses. When consumers are attracted to low premiums, they may face higher overall costs when they require services, particularly if the plan has higher cost-sharing provisions.

The poor health status of the policyholder significantly influences costs—individuals with chronic illnesses or pre-existing conditions often require more frequent medical attention, leading to increased claims and consequently higher costs for the insurer. This can translate into higher premiums for policyholders as the insurance company compensates for the increased use of healthcare resources.

High out-of-pocket costs can lead to situations where policyholders might delay necessary care due to financial concerns. When individuals avoid treatments or preventive care because of high cost-sharing, they may experience worsening health, which can ultimately result in greater costs, both medically and financially. Insurers may raise premiums in response to the overall increase in risk they face from a demographically aging population or from accumulated claims that exceed projections.

Understanding these dynamics illustrates why the response that includes all factors is the most comprehensive—each factor collectively contributes to the