Question

Flexy was badly injured at a party. He has a health insurance contract in place. His treatment

cost him $1200. His insurance confirmed his claim and paid him $900. What accounts for
the difference between his bill and the amount he was paid?​

Answer 1

The difference between Flexy's bill and the amount he was paid is likely due to his health insurance policy's deductible and co-insurance payments.

Step-by-step explanation:

The difference between Flexy's bill of $1200 and the amount he was paid, which is $900, is likely due to his health insurance policy's deductible and co-insurance payments. A deductible is a fixed amount that the insurance does not cover, and the individual has to pay out of pocket before the insurance pays any benefits. In this case, if Flexy's policy has a deductible of $300, he would be responsible for paying the first $300 of his treatment cost. The co-insurance rate, if applicable, determines the percentage of costs that Flexy would have to pay after the deductible is met. For example, if his policy has a 20% co-insurance rate, he would have to pay 20% of the remaining $900 after the deductible, which is $180. Therefore, the total amount Flexy would have to pay is $300 (deductible) + $180 (co-insurance) = $480. The insurance company would then pay the remaining amount of $420.