Question

In this section, you’ll consider how other types of insurance work.

You have an insurance policy that you pay a premium for every month. Your insurance policy has a $1,500 annual deductible, a 20 percent co-insurance, and an out-of-pocket maximum of $3,000. You haven’t had any medical appointments yet this year, so you haven’t paid anything toward your deductible.

You had a medical treatment, and the bill is $800 in total. How much of this bill can you expect to pay?
Question 4 options:

$640


$0


$800


$160

Answer 1

$800

Because you haven't met the $1,500 deductible, you must pay the full $800 bill yourself (coinsurance doesn't apply until the deductible is met).