Podcast
Questions and Answers
What portion of the hospital bill does L need to cover after the deductible has been paid?
What portion of the hospital bill does L need to cover after the deductible has been paid?
How is the total amount due calculated based on the coinsurance policy?
How is the total amount due calculated based on the coinsurance policy?
If L's hospital bill was $3,000, what would be L's total out-of-pocket expense?
If L's hospital bill was $3,000, what would be L's total out-of-pocket expense?
What would happen if L had a $1,000 deductible instead of $500?
What would happen if L had a $1,000 deductible instead of $500?
Signup and view all the answers
Which option correctly represents the total bill calculation based on the coverage type?
Which option correctly represents the total bill calculation based on the coverage type?
Signup and view all the answers
Study Notes
Medical Insurance Terms and Calculations
- Major medical policy often includes deductibles and coinsurance terms.
- A deductible is the amount a policyholder must pay out-of-pocket before insurance coverage kicks in.
- Coinsurance is the percentage of costs that the insurance company pays after the deductible is met.
Scenario Analysis
- L's policy features a $500 deductible, meaning L is responsible for the first $500 of medical expenses.
- With an 80/20 coinsurance arrangement, the insurance covers 80% of costs after the deductible, while L pays 20%.
Total Loss and Payments
- L experiences a $2,500 loss during hospitalization.
- First, the $500 deductible is subtracted from the total loss.
- Remaining amount after deductible: $2,500 - $500 = $2,000.
- L's responsibility for coinsurance: 20% of $2,000 = $400.
Final Calculation
- Total amount L pays: $500 (deductible) + $400 (coinsurance) = $900.
Answer to Question
- The maximum amount that L will have to pay is $900, corresponding to option B.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of key medical insurance concepts such as deductibles and coinsurance. Analyze scenarios involving policy features to calculate total out-of-pocket expenses for medical losses. This quiz will reinforce essential knowledge for navigating medical insurance policies.
