Question

Jack is a 65-year-old man who recently experienced what he thought were stroke-like symptoms and went to the emergency room at a nearby hospital. Although it turned out to be a severe case of heartburn, not a stroke, his medical bill for the hospitalization and tests totaled $4,135. Jack has an insurance policy with a $400 hospital stay deductible and a coinsurance rate of 20%. He can therefore expect a reimbursement from the insurance company of $.

(Note: Round your answer to the nearest dollar.)

Answer 1

Jack's insurance policy with a $400 deductible and 20% coinsurance will reimburse him $3,135 for his hospitalization and tests.

Step-by-step explanation:

To calculate Jack's reimbursement from the insurance company, we need to consider his deductible and coinsurance rate. Jack's insurance policy has a $400 deductible for hospital stays, which means he needs to pay the first $400 out of pocket. After that, his insurance will cover a percentage of the remaining costs. In this case, Jack has a coinsurance rate of 20%, which means he will be responsible for 20% of the total bill.

The total bill is $4,135, and Jack has already paid the $400 deductible. So, he will only be responsible for 20% of $3,735 (the remaining amount after the deductible), which is $747. The insurance company will reimburse the rest of the amount, which is $3,135.

Rounding to the nearest dollar, Jack can expect a reimbursement of $3,135 from the insurance company.