Question

Ben is insured. The plan has a 10% coinsurance rate and no deductible. Lisa receives a hip

replacement that costs $10,000. What is the cost of care to Lisa?

Answer 1

Lisa will pay a coinsurance amount of $1,000 for her $10,000 hip replacement surgery, which is 10% of the total cost as per her insurance plan's terms.

Step-by-step explanation:

Ben's insurance plan requires him to pay coinsurance, which is his share of the costs for medical services. Since the plan has a 10% coinsurance rate and no deductible, Lisa's cost for her hip replacement would be calculated by applying the coinsurance rate to the total cost of the treatment. In this case, the hip replacement costs $10,000; therefore, Lisa would be responsible for paying 10% of $10,000.

Calculating Coinsurance

Coinsurance amount = Total cost of medical service × Coinsurance rate

Lisa's coinsurance amount = $10,000 × 0.10

Lisa's coinsurance amount = $1,000

Thus, Lisa will pay $1,000 for her hip replacement surgery, and the insurance plan will cover the remaining $9,000.