Answer:
Bob will have to pay $2,160 to cover the cost of his surgery
Step-by-step explanation:
Coinsurance on the surgery = 20% * $35,000
Coinsurance on the Surgery = 20/100 * $35,000
Coinsurance on the Surgery = 0.2 * $35,000
Coinsurance on the Surgery = $7,000
Annual Stop Loss = $3,000
Annual Physical Exam costs = $250 * 4
Annual physical Exam = $1000
Coinsurance on physical exam = 80% * $1,000
Coinsurance= 80/100 * $1,000
Coinsurance = 0.8 * $1,000
Coinsurance = $800
Deductible paid for Physical Exam = 20% *$200
Deductible = 20/100 * $200
Deductible = 0.2 * $200
Deductible = $40
Total payables = Annual Loss - Coinsurance on Physical Exam - Deductible for Physical Exam
Total Payables = $3,000 - $800 - $40
Total Payables = $2,160
The insurance company will pay the rest of the medical expenses.
