Question

You broke your toe on the end of your bed and went to the doctor. You have a $2,000 deductible, of which you have already paid $1,800. The total bill for the doctor's visit is $1,500, and your coinsurance is 20/80. How much will you end up paying for this doctor's visit?

A) $1,500
B) $1,480
C) $320
D) $20

Answer 1

After paying the remaining deductible of $200, the student is responsible for a 20% coinsurance on the rest of the bill, which amounts to $260. Therefore, the total payment by the student for the doctor's visit is $460.

Step-by-step explanation:

The student's insurance plan has a deductible, which is the maximum out-of-pocket expense before insurance coverage begins. In this case, the deductible is $2,000, with $1,800 already paid. The doctor's visit costs $1,500, which means the remaining deductible is $200 ($2,000 - $1,800). After the deductible is met, coinsurance applies, and the cost is split into a 20/80 ratio, where the patient pays 20%. The remaining $1,300 of the bill ($1,500 - $200 deductible) incurs a 20% coinsurance fee for the student.

First, calculate the remaining deductible:
$2,000 (total deductible) - $1,800 (amount already paid) = $200

Next, subtract the remaining deductible from the bill to find the amount subject to coinsurance:
$1,500 (total bill) - $200 (remaining deductible) = $1,300

Finally, calculate the coinsurance amount:
20% of $1,300 = $260

The student will pay the remaining deductible of $200 plus coinsurance of $260, for a total of $460 out-of-pocket.