The Athena Medical Group has purchased from the Corinthian Insurance Company individual stop-loss insurance coverage for primary and specialty care services with a $5,000 attachment point and 10 percent coinsurance. One of Athena's patients accrued $8,000 of medical costs for primary and specialty care treatment. In this situation, Athena will be responsible for paying an amount equal to
A) $300, and Corinthian is obligated to reimburse Athena in the amount of $2,700
B) $2,700, and Corinthian is obligated to reimburse Athena in the amount of $5,300
C) $5,300, and Corinthian is obligated to reimburse Athena in the amount of $2,700
D) $7,700, and Corinthian is obligated to reimburse Athena in the amount of $300

Question

Quizplus · Accepted Answer

Athena is responsible for the first $5,000 (attachment point) plus 10% of the remaining $3,000 ($300), totaling $5,300. Corinthian reimburses the remaining $2,700.

The Athena Medical Group Has Purchased from the Corinthian Insurance