select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level…

select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level of co - insurance for his plan is 70/30 where 30 represents pacos portion. he also has a one - time co - payment of $20. if paco incurs a $1,000 hospital bill, how much money will he owe out - of - pocket for the bill?\na. $845\nb. $720\nc. $545\nd. $620

select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level of co - insurance for his plan is 70/30 where 30 represents pacos portion. he also has a one - time co - payment of $20. if paco incurs a $1,000 hospital bill, how much money will he owe out - of - pocket for the bill?\na. $845\nb. $720\nc. $545\nd. $620

Answer

Answer:

C. $545

Explanation:

Step1: Subtract deductible from bill

$1000 - 750= 250$

Step2: Calculate Paco's co - insurance

$250\times0.3 = 75$

Step3: Add co - pay and co - insurance and deductible

$750+75 + 20=545$