Question

Darius and Julian have both had $5,000 in medical bills this year. Now, flu season has hit; they're both sick and each is considering going to the hospital. Based on the following information about their health insurance plans, how much will each pay out-of-pocket for a $1,000 hospital visit?

a) Darius and Julian will pay nothing
b) Darius will pay less than Julian
c) Julian will pay less than Darius
d) Darius and Julian will pay the same amount

Answer 1

Based on the infomation, Option c) is correct. Julian will pay less than Darius.

Since Darius has already met his deductible for the year ($5,000 in medical bills), he will only be responsible for the coinsurance. For a $1,000 hospital visit, Darius will pay 20% * $1,000 = $200.

Julian, however, has not met his deductible yet. So, he will be responsible for the deductible amount ($1,000) plus the coinsurance on the remaining amount. For the remaining $1,000 - $1,000 = $0, Julian will pay 10% * $0 = $0.

Therefore, Julian will pay a total of $1,000 + $0 = $1,000, while Darius will pay $200. Julian will pay less than Darius.