Question

Greg has a traditional health insurance plan with a $500 deductible, 80/20 coinsurance, and a $2000 out of pocket max. His total health care bill is $8,760. How much will he end up paying?

Answer 1

Answer: $2,000

Step-by-step explanation:

Greg will pay the $500 deductible first.

Amount left is;

= 8,760 - 500

= $8,260

This will be shared by the insurance company and by Greg 80/20.

= 8,260 * 20%

= $1,652

Add this to the first amount he paid;

= 1,652 + 500

= $2,152

This is above Greg's out of pocket limit of $2,000 so Greg will pay his limit of $2,000.