Question

Given a $250 annual deductible, an 80% co-insurance provision, and a $5,000 copayment cap, how much of a $27,500 medical bill will be paid by the insured

Answer 1

Answer: $5,250

Step-by-step explanation:

With an 80% Co-insurance provision, the insured is to pay 20% of the medical bill.

= 27,500 * 20%

= $5,500

This amount is capped at a copayment cap of $5,000 so the insured will pay only the $5,000.

The insured will also pay the $250 annual deductible so the total paid will be;

= 5,000 + 250

= $5,250