Which statement about private health insurance plans is accurate regarding ownership?

• A. Stock companies are owned by policyholders.
• B. Mutual companies operate nationally and are owned by stockholders.
• C. Non-profit plans operate regionally and are tax-exempt.
• D. All private plans uniformly require pre-authorization for PT visits.

Answer: (C)

Ownership structures in private health insurance come in a few forms. Stock companies are owned by stockholders who share in profits, not by policyholders. Mutual companies are owned by policyholders, which reflects a member-driven model, but they don’t inherently define nationwide operation. Non-profit plans, on the other hand, are tax-exempt and not owned by stockholders; profits are reinvested in the plan, and they typically operate within a regional scope with governance by a member-elected board. That combination—regional operation and tax-exempt status—fits the statement about ownership.