Question

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. policy 2: premium: $350 per month, deductible: $500 per year, copayment: $10 per doctor visit, coinsurance: 10% after the deductible is met, out - of - pocket maximum: $2,000. assume a person with policy 2 has met their deductible and had a hospital stay that resulted in a $5,000 charge. how much would they pay in coinsurance?

Explanation:

Step1: Identify coinsurance rate

For Policy 2, the coinsurance rate is 10% after the deductible is met.

Step2: Calculate coinsurance amount

The hospital - stay charge is $5,000. Since the deductible has been met, the coinsurance amount is calculated as 10% of $5,000.
$0.1\times5000 = 500$

Answer:

$500$