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shahabkhon shahabkhon
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2 months ago
The Insurance Market

Suppose you have a health insurance policy with a $350 deductible and 40 percent coinsurance. If you receive a medical bill for $2,500, how much will you pay out-of-pocket?
Please round your final answer to two decimal places.

▸ $1,350.00

▸ $1,640.00

▸ $1,850.00

▸ $1,210.00
Textbook 

Macroeconomics


Edition: 3rd
Authors:
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gamblawcgamblawc
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2 months ago
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$1,210.00

The deductible is the amount the policyholder must pay out-of-pocket before the insurance takes over.
In this example, the policyholder must pay $350 out-of-pocket.

Coinsurance splits the responsibility of claims between the insurance company and policyholder.
The remaining 2,500 - 350 = $2,150 is split between the policyholder and the insurance company.
In this example, the policyholder pays 40 percent and the insurance company pays 60 percent.
With coinsurance, you pay 0.4*2,150 = 860.00

Therefore, your total out-of-pocket cost is 350 + 860.00 = $1,210.00.
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shahabkhon Author
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2 months ago
This helped my grade so much Perfect
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You make an excellent tutor!
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Thanks
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