Question

1. Determine the out-of-pocket costs in the following scenario. Carl's health insurance includes a $400 deductible...

1. Determine the out-of-pocket costs in the following scenario.
Carl's health insurance includes a $400 deductible and 80/20 coinsurance on all services that are not preventable.
Carl visited the doctor for a sore throat on January 1st.  The bill was $40. How much will Carl pay for the visit?

2. Determine the out-of-pocket costs in the following scenario.
Cyrus's health insurance includes a $2,000 deductible and 80/20 coinsurance on all services that are not preventable.
He has an appendectomy on January 1st. The bill was $5,000. How much will Cyrus pay?

3.Determine the out-of-pocket costs for the following scenario.
Bellamy's health insurance includes a $800 deductible and 80/20 coinsurance on all services that are not preventable.
Bellamy visited the doctor for an ear infection on January 1st. The bill was $75. How much will Bellamy pay for the visit?

4. Determine the out-of-pocket costs for the following scenario.
Natalie's health insurance has no deductible and a $45 co-payment for all physician visits.
Natalie visited the doctor for a sprained ankle on January 1st. The bill was $90. How much will Natalie pay for the visit?

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Homework Answers

Answer #1

Solution:

1.The Bill was $40 only,that is below the deductible.Hence,Carl will have to pay $40 for the visit.

2.Calculation of Cyrus pay

Coinsurance expense=Total bill-deductible

=$5000-$2000

=$3,000

Cyrus pay=Deductible+20% of Coinsurance expense

=$2000+($3,000*.20)

=$2,600

3.Since the total bill($75) amount is lower than the deductible(i.e $800),hence Bellamy have to pay for the total bill.

Therefore,total amount that Bellamy will pay is $75

4.There is $45 co-payment for all physician visits.Therefore total amount that Natalie will pay for the visit is ;

=total bill-$45

=$90-$45

=$45

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