Question

1. Suppose Steve has an insurance policy with a $1,000 deductible, 20% coinsurance, and a $7,500...

1. Suppose Steve has an insurance policy with a $1,000 deductible, 20% coinsurance, and a $7,500 out-of-pocket maximum. A) How much is Steve responsible for a hospital bill of $2,000? B) Now suppose he has another bill for $25,000 because of a surgery in the same year. How much is he responsible for this second bill?

Homework Answers

Answer #1

A) Bill is 2000$; 1000$ is deductible which needs to be paid by Steve. Out of the remaining $1000, 20% coinsurance of 20%*$1000=200$ is also to be paid by Steve. Total of $1200 paid by Steve. The remaining $800 will be paid by insurer.

B)Bill is 25000$ in the same year of coverage. Deductible (per claim assumed) is $1000 which needs to be paid by Steve. 20% of remaining amount =20%*(25000-1000)=$4800; So a total of 1000+4800=5800 $ needs to be paid by Steve. We can also double check that total payments by Steve is 1200+4800=$6000 for the year which is still within the max out of pocket expenses of 7500$ a year.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of...
larry has a health insurance policy that includes a deductible of $1,000 and a coinsurance of 20%. If his total bill is $7,000, how much will his insurance pay?
Peter has a health insurance policy that includes a deductible of $1,500, a coinsurance of 20%,...
Peter has a health insurance policy that includes a deductible of $1,500, a coinsurance of 20%, and a stop-loss of $5,000. If his total bill is $20,000, how much will he pay? Show all calculations and explain your answer.
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...
Sarah’s comprehensive major medical health insurance plan at work has a deductible of $650. The policy...
Sarah’s comprehensive major medical health insurance plan at work has a deductible of $650. The policy pays 90 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $9,860. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,400. The policy with...
Jon Snow was recently stabbed with resulting medical bills of $4,000. His health insurance includes the...
Jon Snow was recently stabbed with resulting medical bills of $4,000. His health insurance includes the following:  $1,000 calendar-year deductible  80/20 coinsurance clause  $5,000 out-of-pocket max 1. After insurance is applied, how much will Jon owe for the medical bill? 2. Jon needs surgery during the same calendar year that costs $30,000. After insurance is applied, how much will Jon owe for the surge
Your health insurance has of an annual deductible of $750 per person or $1,500 per family....
Your health insurance has of an annual deductible of $750 per person or $1,500 per family. After meeting the deductible, you must pay 20 percent of covered charges until you reach $5,000 out of pocket, after which the insurer will pay 100 percent of the costs. Assume that your family had no other claims during the year and that your child requires emergency surgery. If the total covered charges for the surgery are $25,000, all incurred in the same plan...
Judy Atwood has 100/500/100 vehicle insurance. She has a $0 deductible on comprehensive and $1,000 deductible...
Judy Atwood has 100/500/100 vehicle insurance. She has a $0 deductible on comprehensive and $1,000 deductible on collision. Judy crashed into another vehicle while speeding and was at fault. Sheila, Kathy, and Bob, the driver and passengers in the other vehicle, were injured. Sheila's medical care was $25,940, Kathy's medical care was $88,760, and Bob's medical expenses were $66,890. Their care required $26,380 to repair. Judy's vehicle had $6,620 in damages but she had no injuries. How much will the...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000. Was her friend...
Vladimir had a car accident that left him with minor injuries. The car damage was estimated...
Vladimir had a car accident that left him with minor injuries. The car damage was estimated at $3,000 while his medical bill was $800. If his car coverage policy has a $300 deductible and his health insurance has $150 deductible. How much in total will the insurance company cover? Now if the car damage was estimated at $2300 while his medical bill was $800 and his car coverage policy has a $400 deductible and his health insurance has $200 deductible,...
Suppose that Nathan’s employer provides a health insurance policy that pays 80 percent of expenses over...
Suppose that Nathan’s employer provides a health insurance policy that pays 80 percent of expenses over the first $100. (a) What term is used to refer to the $100 threshold? (b) What term is used to refer to the 20 percent payment beyond the $100 threshold? (c) If Nathan incurs $1,000 in expenses, how much must Nathan pay out-of-pocket?