Arkansas Life and Health Insurance Practice Exam

In the context of health insurance, which of the following statements about Pre-Admission Certification is true?

1. It involves planning for a patient's future healthcare needs

2. It is required for emergency services only

3. It must be obtained before a hospital admission

4. It waives the deductible for the insured

The correct answer is: It involves planning for a patient's future healthcare needs

In the context of health insurance, Pre-Admission Certification refers to the process of obtaining approval from the insurance company for a planned hospital admission. This means that option C is incorrect, as the certification must be obtained before, not after, the hospital admission. Option B is also incorrect, as Pre-Admission Certification is not limited to emergency services and is required for all planned hospital admissions. Option D is incorrect as well, as Pre-Admission Certification does not waive the patient's deductible, but rather ensures that the hospital stay will be covered by the insurance plan. This leaves option A as the correct answer, as obtaining Pre-Admission Certification allows for proper planning of a patient's future healthcare needs.