roduction to insurance\ndeductibles are the amounts paid out - of - pocket for an insurance claim before the…

roduction to insurance\ndeductibles 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.\npolicy 1\npremium: $150 per month\ndeductible: $2,500 per year\ncopayment: $20 per doctor visit\ncoinsurance: 20% after the deductible is met\nout - of - pocket maximum: $5,000\npolicy 2\npremium: $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\nassume a person with policy 2 has met their deductible and had a hospital stay that resulted in a $5,000 charge.\nhow much would they pay in coinsurance?\n$2,000\n$3,000\n$5,000\n$500

roduction to insurance\ndeductibles 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.\npolicy 1\npremium: $150 per month\ndeductible: $2,500 per year\ncopayment: $20 per doctor visit\ncoinsurance: 20% after the deductible is met\nout - of - pocket maximum: $5,000\npolicy 2\npremium: $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\nassume a person with policy 2 has met their deductible and had a hospital stay that resulted in a $5,000 charge.\nhow much would they pay in coinsurance?\n$2,000\n$3,000\n$5,000\n$500

Answer

Explanation:

Step1: Identify coinsurance rate for Policy 2

For Policy 2, the coinsurance rate after deductible is met is 10% or 0.1.

Step2: Calculate coinsurance amount

The hospital - stay charge is $5000. Multiply the charge by the coinsurance rate. So, the coinsurance amount = $5000\times0.1$. $5000\times0.1 = 500$

Answer:

$500$