Question

You have just had an emergency brainectomy (not a pretty sight). Your health insurance premium is 1,250 per year. Your insurance policy has a500 annual deductible, after which it pays 70

1) $500
2) $2,500
3) $3,500
4) $7,500

Answer 1

The question pertains to how health insurance payments work, with annual premiums and deductibles being the core components that define how costs are shared after a health incident.

Step-by-step explanation:

The student's question relates to understanding how health insurance payments work. To clarify, when an individual has health insurance, they typically pay an annual premium for the coverage and are responsible for an annual deductible before the insurance starts covering a portion of the expenses. In this hypothetical scenario, after the $500 deductible is met, the insurance policy pays for 70% of subsequent costs. If we consider the situation where a total of $1,250 (annual premium) is paid and a $500 deductible is applicable each year, we then apply this information to understand how the costs are shared, similarly to how individuals in an automobile insurance pool would pay premiums to collectively cover accident costs.