calculating coinsurance\nmikes insurance policy has a $250 deductible and 15% coinsurance. he has an…

calculating coinsurance\nmikes insurance policy has a $250 deductible and 15% coinsurance. he has an emergency room visit that results in a bill of $1,500. if mike hasnt met his deductible for the year, how much will he owe?\nmike owes $ of the $1,500.

calculating coinsurance\nmikes insurance policy has a $250 deductible and 15% coinsurance. he has an emergency room visit that results in a bill of $1,500. if mike hasnt met his deductible for the year, how much will he owe?\nmike owes $ of the $1,500.

Answer

Explanation:

Step1: Pay the deductible first

Since Mike hasn't met his deductible of $250 and the bill is $1,500, he pays the full deductible amount first.

Step2: Calculate coinsurance on remaining amount

The remaining bill amount after paying the deductible is $1500 - 250=1250$. Mike's coinsurance is 15% of this remaining amount, so the coinsurance amount is $0.15\times1250 = 187.5$.

Step3: Calculate total amount owed

The total amount Mike owes is the deductible plus the coinsurance amount, which is $250+187.5 = 437.5$.

Answer:

$437.5$