Question

Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?

A) $2,100 - $10,000 x 20% coinsurance + $100 deductible
B) $1,900 - $10,000 x 80% coinsurance + $100 deductible
C) $2,000 - $10,100 x 20% coinsurance
D) $8,100 - $10,000 x 80% coinsurance

Answer 1

Q is responsible for paying a total of $2,100, which includes the $100 deductible and the 20% coinsurance of the remaining $10,000.

Step-by-step explanation:

When calculating the amount Q will be responsible for paying on this medical bill, we first apply the deductible of $100, which is the initial amount that must be paid out-of-pocket before the insurance company starts paying. After the deductible, the remaining amount is subject to an 80/20 coinsurance, which means that the insurance covers 80% and Q is responsible for the remaining 20%.

Therefore, after paying the $100 deductible, the bill is $10,000. At the 20% coinsurance rate, Q's share of this becomes $10,000 * 20% = $2,000.

Finally, when we add the deductible to the coinsurance, Q is responsible for $100 + $2,000 = $2,100.