Question

theo is a member of a group insurance plan through his workplace that has a $250 deductible per year and 80% co-insurance provisions. recently, theo was hospitalized for a broken leg. theo incurred $1,500 in covered medical expenses. how much will the insurance company reimburse theo?

Answer 1

After Theo pays his $250 deductible, the insurance company will pay 80% of his remaining expenses. For $1,500 in medical expenses, the insurance will reimburse Theo $1,000.

Step-by-step explanation:

When Theo was hospitalized for a broken leg with $1,500 in covered medical expenses, we needed to calculate how much the insurance company would reimburse him. First, Theo must pay the $250 deductible out of his pocket. The remaining amount is $1,500 - $250 = $1,250. Theo's plan has an 80% co-insurance provision, so the insurance company will pay 80% of the remaining $1,250. Calculating 80% of $1,250 gives us $1,250 * 0.80 = $1,000. Therefore, the insurance company will reimburse Theo $1,000 for his medical expenses.