Certified Application Counselor Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

Being underinsured means that an individual does not have enough health insurance coverage to adequately protect them from significant medical expenses. As a result, when they seek medical care, they may face high out-of-pocket costs, such as copayments, deductibles, and other expenses not covered by their insurance policy. These financial burdens can lead to challenges in accessing necessary care or engaging in preventative health measures, as the prospect of high costs can deter individuals from seeking treatment.

In contrast, full coverage for all health issues (the first choice) and free preventive services (the fourth choice) imply comprehensive or ideal scenarios that do not occur when someone is underinsured. Additionally, being eligible for government programs (the third option) could apply to individuals with low income or other qualifying factors, but it does not address the specific nature of being underinsured and its financial implications. Therefore, high out-of-pocket expenses most accurately reflects the situation of those who find themselves underinsured.