Lyle's health care plan will pay 75 percent of all covered expenses over the first $500 per year.This policy contains

Question

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The health care plan described in the scenario contains both coinsurance and a deductible. The coinsurance is 75 percent, which means that the policyholder is responsible for the remaining 25 percent of covered expenses. The deductible is $500 per year, which means that the policyholder must pay out-of-pocket for expenses up to that amount before the insurance coverage kicks in. This combination of coinsurance and a deductible is typical in many health care plans.

Lyle's Health Care Plan Will Pay 75 Percent of All