Question

Bobby's health insurance policy has a $2,000 deductible, with coinsurance that pays 80% after he meets the deductible. If Bobby sees a cardiac specialist and takes a stress test that costs $2,750, how much would Bobby need to pay out of his own pocket? Type the correct answer in the box. Round your answer to the nearest dollar. Bobby would need to pay $___out of his own pocket for the stress test.

Answer 1

Total Cost Incurred from stress test is $2,750.

Deductible of $2,000 means he pays $2,000 off the $2,750 leaving the remaining balance to be paid at:

$2,750 -2000=750$

However, Bobby's Health Insurance policy is now liable for 80% of of this balance equaling:

$\frac{80}{100}\times750=600\text{ dollars}$

So in all, insurance covers just $600 off $,2750.

Therefore, Bobby will have to pay:

$2750-600=2,150\text{ dollars}$

Bobby would need to pay $2,150 out of his own pocket for the stress test.​