Given a $500 annual deductible,a $4,000 lid on the coinsurance,80/20 coinsurance,and a $250,000 policy limit,how much of a $15,000 medical bill will be paid by the insured?

Question

Quizplus · Accepted Answer

First, the insured must pay the deductible of $500. Then, the coinsurance applies, which means the insured pays 20% of the remaining cost while the insurance pays 80%.

So the insured pays: 
$500 (deductible) + 20% of ($15,000 - $500 - $4,000) = $500 + 20%*$10,500 = $3,400

Therefore, the answer is C.

Given a $500 Annual Deductible,a $4,000 Lid on the Coinsurance,80/20