Question

Magdalena Figueroa's covered medical care bills for a recent illness were $8,440.00. Her major medical policy had a coinsurance feature that paid 80% of all covered expenses above a $400 deductible. The amount paid by the major medical policy was what?

Answer 1

Medical bill = $8,440
Deductible = $400
Coinsurance plan = Medical policy 80% of all expenses above $400

Amount to pay = 400+ (8440-400)*20/100 = 400+1608 = $2,008