Question

Veronica was recently diagnosed with a heart condition. Her doctor's bill was $4,200 for the diagnostics Her policy has a $250 deductible and a 80/20 coinsurance provision up to $10,000 and then the insurance pays 100% thereafter. In total, how much will Veronica pay for her diagnosis?

A) $10,000

B) $1,040

C) $4,200

D) $250

Answer 1

Option (B).

Step-by-step explanation:

According to the scenario, computation of the given data are as follows:

Doctor's bill = $4,200

Deductible amount = $250

Insurance company pays = 80%

Veronica pays = 20%

So, we can calculate the total amount veronica pay by using following formula:

Veronica Pay amount = [( Doctor's bill - Deductible amount ) × Veronica pays%] + Deductible amount

= [($4,200 - $250) × 20%] + $250

= $790 + $250

= $1,040