Sheldon has a traditional health insurance plan. He has a $200 deductible. The level of co-insurance for his plan is 90/10, wher
e 10 represents Sheldon’s portion. He does not have a co-payment. If Sheldon incurs a $1,500 hospital bill, how much money will the insurance company pay for the bill?
If Sheldon had a $1500 hospital bill, he would have to pay the first $200 which would leave $1300 balance. Of this balance, the insurance policy should cover 90% or $1170. So the balance he would pay would be $130 plus the $200 deductible for a total of $370.
