premium $350 per month\ndeductible: $500 per year\ncopayment: $10 per doctor visit\ncoinsurance: 10% after…

premium $350 per month\ndeductible: $500 per year\ncopayment: $10 per doctor visit\ncoinsurance: 10% after the deductible is met\nout - of - pocket maximum: $2,000\npolicy 3\npremium $250 per month\ndeductible: $1,000 per year\ncopayment: $15 per doctor visit\ncoinsurance: 15% after the deductible is met\nout - of - pocket maximum: $3,000\npolicy 4\npremium $100 per month\ndeductible: $7,500 per year\ncopayment: $50 per doctor visit\ncoinsurance: 25% after the deductible is met\nout - of - pocket maximum: $5,000\nreuben has policy 4 and has not visited the doctor all year. after a recent bicycle accident, he received a bill from the hospital for $10,000.\nhow much should he expect the insurance company to pay towards the bill?\n$2,000\n$8,000\n$7,500\n$10,000

premium $350 per month\ndeductible: $500 per year\ncopayment: $10 per doctor visit\ncoinsurance: 10% after the deductible is met\nout - of - pocket maximum: $2,000\npolicy 3\npremium $250 per month\ndeductible: $1,000 per year\ncopayment: $15 per doctor visit\ncoinsurance: 15% after the deductible is met\nout - of - pocket maximum: $3,000\npolicy 4\npremium $100 per month\ndeductible: $7,500 per year\ncopayment: $50 per doctor visit\ncoinsurance: 25% after the deductible is met\nout - of - pocket maximum: $5,000\nreuben has policy 4 and has not visited the doctor all year. after a recent bicycle accident, he received a bill from the hospital for $10,000.\nhow much should he expect the insurance company to pay towards the bill?\n$2,000\n$8,000\n$7,500\n$10,000

Answer

Explanation:

Step1: Subtract deductible

The deductible of Policy 4 is $7,500. The hospital bill is $10,000. So the amount subject to coinsurance is $10,000 - $7,500=$2,500$.

Step2: Calculate Reuben's coinsurance payment

The coinsurance rate is 25%. So Reuben's coinsurance payment is $2,500\times0.25 = $625$.

Step3: Calculate insurance - company payment

The total bill is $10,000$. Reuben pays the deductible of $7,500$ and coinsurance of $625$. So the insurance - company payment is $10,000-(7,500 + 625)=10,000 - 8,125=$1,875$. But since the out - of - pocket maximum is $5,000$ and Reuben has already paid $7,500$ (deductible) which is more than the out - of - pocket maximum, the insurance company will pay the remaining amount of the bill after reaching the out - of - pocket maximum. So the insurance company pays $10,000-(5,000)= $5,000$.

Answer:

$5,000$