Ashley Martin is covered by a managed healthcare plan that specifies a $300 deductible and includes a 30% coinsurance provision for all healthcare obtained outside the plan's network of providers. In 1998, Ms. Martin became ill while she was on vacation, was hospitalized, and incurred $2,000 for healthcare that she obtained outside her plan's network, but that is covered by the plan. Ms. Martin incurred no other out-of-network expenses during 1998. Of the $2,000 in covered out-of-network expenses that Ms. Martin incurred, she is responsible for paying a total of:

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Since Ms. Martin's plan includes a $300 deductible, she is responsible for paying that amount first. This leaves $1,700 ($2,000 - $300) in covered expenses remaining. However, because these expenses were obtained outside the plan's network, Ms. Martin is responsible for paying 30% of the remaining $1,700, or $510. Therefore, the total amount Ms. Martin is responsible for paying is $300 + $510 = $810.

Ashley Martin Is Covered by a Managed Healthcare Plan That