Question

Joseph has a health insurance policy with the following provisions: $540 deductible, $40 copay, and 80/20 coinsurance provision. If Joseph has an accident that costs $3090 in medical expenses, how much will he have to pay out of pocket

Answer 1

$1050

Solution: $2830-$545-$60=$2225 insurable costs. He pays $2225 × 20% = $445 out of pocket coinsurance
$545+$60+$445 = 1050
The total cost to the insured is $1050