Homework Clinic
Social Science Clinic => Economics => Macroeconomics => Topic started by: dabomba718 on Nov 23, 2022
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Cost Containment
Suppose you have a health insurance policy with $190 deductible and 20 percent coinsurance. If you receive a medical bill for $1,600, what percent of the bill does your insurance cover? What percent of the bill will you pay?
Please round your final answer to two decimal places.
◦ 29.50%, 58.16%
◦ 29.50%, 70.50%
◦ 41.84%, 58.16%
◦ 41.84%, 70.50%
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29.50%, 70.50%
The deductible requires the policyholder to pay a certain dollar amount before the insurance begins paying claims. In this example, the policyholder must pay $190 before the insurance company begins to pay.
You pay $190
1,600 - 190 = $1,410 remains
Coinsurance requires the policyholder to pay a certain percentage of the remaining bill (after the deductible has been paid). In this example, the policyholder must pay 20 percent of the remaining bill.
You pay (20/100)*1,410 = 0.2*1,410 = $282.00
The insurance company pays the rest.
Therefore, after the deductible and coinsurance, you pay 190 + 282.00 = $472.00.
The insurance company pays 1,600 - 472.00 = $1,128.
Of the total bill, you pay 100*(472.00/1,600) = 29.50% and the insurance company pays 100*(1,128/1,600) = 70.50%.