Question

A patients total surgery charges are $1,278. The patient must pay the annual deductible of $1000 & the policy states a 80-20 coinsurance. What does the patient owe?

Answer 1

The correct answer is - $1056.60

Step-by-step explanation:

Given:

A patient's total surgery charges are $1,278.

The patient must pay the annual deductible of $1,000.

The policy states an 80-20 coinsurance

Solution:

Insurance would be effective on : $1,278 - $1,000 = 278

The policy states an 80-20 coinsurance

20% = 0.20 in fraction

20% of patients surgery cost = 0.20 × $278

= $ 55.6

Patients owe = Deductible cost + 20% of patients surgery cost

= $1000 + 55.6

= $ 1055.6

Therefore, the patient owes $1055.6.