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Kim is covered under two medical expense plans. Plan A pays up to $5000, Plan B pays up to $4000. If she incurs $7000 in expenses, the coordination of benefits provision dictates that:

A) Plan A will cover the full $7000.
B) Plan B will cover the full $7000.
C) Plan A and Plan B will split the costs equally.
D) The plans will coordinate, and Kim will receive a total of $9000 in coverage.

1 Answer

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Final answer:

The coordination of benefits provision in this situation dictates that Plan A will cover the full $5000 and Plan B will cover the remaining $2000 for a total coverage of $7000.

Step-by-step explanation:

The coordination of benefits provision dictates that in this situation, Plan A will cover the full $5000 and Plan B will cover the remaining $2000 for a total coverage of $7000. This is because the coordination of benefits provision ensures that the combined coverage of both plans does not exceed the actual expenses incurred.

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