Question

four health insurance policies
the costs and coverages for four different health insurance policies are listed. premiums are the amount that one pays for the insurance policy. deductibles are the amounts paid out - of - pocket for an insurance claim before the insurance company pays for expenses. copayments are paid out - of - pocket for each doctor visit. coinsurance is paid out - of - pocket for medical expenses after the policys deductible has been met, usually represented as a percentage of the total bill. the out - of - pocket maximum is the limit that a person pays for their health insurance in a given year, including deductibles, copayments, and coinsurance.
policy 1
premium: $150 per month
deductible: $2,500 per year
copayment: $20 per doctor visit
coinsurance: 20% after the deductible is met
out - of - pocket maximum: $5,000
joanna has policy 1 and has not met the deductible for the year. a recent hospital visit has resulted in a $2,000 bill. how much of the bill will she have to pay out - of - pocket?

Explanation:

Step1: Identify the deductible situation

Joanna has not met the deductible.

Step2: Determine out - of - pocket cost

Since she hasn't met the deductible and the bill is $2000 which is less than the deductible of $2500, she pays the full $2000 bill out - of - pocket.

Answer:

$2000