Question

fill in the blank 8 points
alex has a health insurance plan with a deductible of $2,500, coinsurance of 80/20, and an out - of - pocket maximum of $3,000
alex receives a medical procedure that costs $10,000.
a. the total alex pays out of pocket for this procedure is $\boxed{type your answer...}$
after the medical procedure alex needed physical therapy. each session costs $75, he went to 5 sessions.
b. alex paid $\boxed{type your answer...}$ and his insurance paid $\boxed{type your answer...}$

Explanation:

Step1: Calculate post-deductible cost

$\$10,000 - \$2,500 = \$7,500$

Step2: Calculate coinsurance owed by Alex

$0.20 \times \$7,500 = \$1,500$

Step3: Calculate total out-of-pocket (Part A)

$\$2,500 + \$1,500 = \$4,000$. Compare to out-of-pocket max $\$3,000$; use the lower value.

Step4: Calculate total physical therapy cost

$5 \times \$75 = \$375$

Step5: Alex's payment for PT (Part B)

Since Alex already hit the $\$3,000$ out-of-pocket max, Alex pays $\$0$.

Step6: Insurance's PT payment (Part B)

$\$375 - \$0 = \$375$

Answer:

A. $\$3,000$
B. Alex paid $\$0$ and his insurance paid $\$375$