Question

has a major medical insurance policy with a $500 calendar-year deductible, a $5,000 out-of-pocket limit, and 80-20 coinsurance. was hospitalized for a surgical procedure in March, his first healthcare treatment during the year. The total bill was $20,000. Considering the deductible and coinsurance, how much of this amount must pay

Answer 1

Answer: $3,900

Step-by-step explanation:

First the deductible has to be removed.

= 20,000 - 500

= $19,500

With a $5,000 out-of-pocket limit, and 80-20 coinsurance, the insured is to pay 20% of the remaining balance but the maximum they can pay is $5,000 in a given period.

= 20% * 19,500

= $3,900

He will pay $3,900