Connie has a major medical policy with a $200 deductible.She is required to pay 25 percent of covered expenses in excess of the deductible.The insurer will pay 75 percent of expenses in excess of the deductible.If Connie has eligible medical expenses of $10,000,how much will be paid by her insurer?
A)$7,300
B)$7,350
C)$7,500
D)$9,800

Question

Quizplus · Accepted Answer

Connie's out-of-pocket expenses will be:
$200 (deductible) + 0.25($10,000 - $200) = $2,425
Her insurer will cover:
0.75($10,000 - $200) = $7,350. 
Therefore, the total paid by her insurer is $7,350.

Connie Has a Major Medical Policy with a $200 Deductible