What does risk reduction mean?

• A. Taking action to lower the possibility of loss
• B. An agreement by a doctor, provider or supplier to be paid directly by the insurer.
• C. An amount the insured may be required to pay as his or her share of the cost for services after the deductible
• D. An amount the insured may be required to pay as his or her share of the cost for a medical service or supply

Answer: (A)

Risk reduction means taking actions to lower the chance of a loss occurring or the severity of a loss if it does happen. In health insurance, this includes preventive steps like vaccines, regular screenings, healthy lifestyle habits, and safety measures. By reducing the likelihood or impact of illness or injury, you’re cutting potential claims costs. The other options describe how costs are shared or how a provider is paid, not the act of lowering risk.