Question

Veronica was recently diagnosed with a heart condition. Her doctor's bill was $4,200 for the diagnostics. Her policy has a $250 deductible and a 80/20 coinsurance provision up to $10,000 and then the insurance pays 100% thereafter. In total, how much will Veronica pay for her diagnosis?

Answer 1

$1040

Explanation:

As 80/20 insurance policy is a form of coinsurance in which deductible is satisfied first and then the client would pay 20% of additional medical costs and the remaining 80% is paid by the insurance company. Under the current scenario, Veronica will bear an amount of $250 and $790(i.e. 20% of the amount after deductible), totaling to $1040.