Question

Mia went to the doctor. Mia's health insurance has a $1,000 deductible. It also has a $20 co-payment per visit. This is the first time Mia has used her health insurance this year. The office visit is $145. Mia must pay -------- out of pocket.

a) $20

b) $145

c) $165

d) $1,000

Answer 1

Mia must pay a $20 copayment for her doctor's visit out-of-pocket, as it is a fixed fee paid per visit according to her health insurance policy, despite not having met her $1,000 deductible.

Step-by-step explanation:

Mia went to see the doctor and needs to calculate her out-of-pocket expenses for the visit. Since it is her first time using her health insurance this year, Mia's deductible comes into play. A deductible is the amount an insurance policyholder must pay before the insurance company starts to pay. In this case, Mia's deductible is $1,000. However, because this is a doctor's visit, there is also a copayment involved. The copayment is a fixed fee that Mia pays for receiving services, which is $20.

Since Mia has not met her deductible, she is responsible for the full cost of the office visit, which is $145. Yet, due to the terms of her insurance, she will only pay the copayment amount at the time of the visit. Hence, Mia must pay the copayment of $20 out of pocket.

Therefore, the correct answer is:

a) $20