Given a $250 annual deductible,a $5,000 lid on the coinsurance,80/20 coinsurance,and a $250,000 policy limit,how much of a $27,500 medical bill will be paid by the insured?

Question

Quizplus · Accepted Answer

The insured pays the $250 deductible first, leaving $27,250. Then, the insured pays 20% of the remaining bill up to the $5,000 coinsurance limit. 20% of $27,250 is $5,450, but since the coinsurance limit is $5,000, the insured pays $5,000. Total paid by the insured is $250 (deductible) + $5,000 (coinsurance) = $5,250.

Given a $250 Annual Deductible,a $5,000 Lid on the Coinsurance,80/20