Kristen has an individual medical expense policy with a $1,000 calendar-year deductible,a $5,000 annual out-of-pocket limit,and 80-20 coinsurance.Kristen was hospitalized for a surgical procedure in March,her first health care treatment received during the year.The total bill was $20,000.Considering the deductible and coinsurance,how much of this amount must Kristen pay?

Question

Quizplus · Accepted Answer

First, Kristen must pay the $1,000 deductible. Then, the coinsurance of 20% applies to the remaining $19,000 ($20,000 - $1,000), which means Kristen must pay 20% of that amount, which is $3,800. So Kristen's total out-of-pocket cost is $1,000 + $3,800 = $4,800. Therefore, the correct answer is B.

Kristen Has an Individual Medical Expense Policy with a $1,000