keith has a health insurance plan with a monthly premium of $250, a $1,000 annual deductible, a coinsurance…

keith has a health insurance plan with a monthly premium of $250, a $1,000 annual deductible, a coinsurance of 25% after the deductible is met, and a $2,500 out - of - pocket maximum. during the year, he had a hospital bill that totaled $9,000. including his premiums, how much did keith spend on health insurance for the year? $6,500 $3,000 $2,500 $5,500

keith has a health insurance plan with a monthly premium of $250, a $1,000 annual deductible, a coinsurance of 25% after the deductible is met, and a $2,500 out - of - pocket maximum. during the year, he had a hospital bill that totaled $9,000. including his premiums, how much did keith spend on health insurance for the year? $6,500 $3,000 $2,500 $5,500

Answer

Explanation:

Step1: Calculate annual premium cost

Monthly premium is $250. Annual premium = $250×12 = $3000.

Step2: Calculate out - of - pocket cost after deductible

Hospital bill is $9000. First, pay the $1000 deductible. Remaining bill = $9000 - $1000=$8000. Co - insurance is 25%, so co - insurance amount = $8000×0.25 = $2000. But out - of - pocket maximum is $2500 and we've already paid $1000 deductible, so total out - of - pocket cost is $2500.

Step3: Calculate total annual cost

Total annual cost = Annual premium+Out - of - pocket cost = $3000 + $2500=$5500.

Answer:

$5,500