AHIP Exam AHM-520 Topic 4 Question 18 Discussion

The Northwest Company offers its employees the option of choosing to receive their healthcare benefits from an HMO or from a traditional indemnity plan. The premiums for the HMO are lower than for the traditional indemnity plan. In this situation, it is correct to assume that:

Individual low utilizers are more likely to enroll in the traditional indemnity plan

Individual high utilizers are more likely to enroll in the HMO