Question

A provider bills $400 for a test. The insurance pays $300 and the patient's responsibility is $23.56. What is the contractual discount and what is the patient's responsibility called?

1) $100, copay
2) $76.44, coinsurance
3) $100, coinsurance
4) $76.44, copay

Answer 1

The contractual discount is $100 and the patient's responsibility is called coinsurance.

Step-by-step explanation:

The contractual discount in this case is $100, which is the difference between the provider's billed amount of $400 and the insurance payment of $300. The patient's responsibility of $23.56 is called coinsurance. Coinsurance is when the patient is responsible for paying a percentage of the costs after the insurance payment has been made.