Question

Mary Hernandez had a policy with a $500 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $10,000.00.
Calculate each of the following:

a. the insurance company's payment:

b. the 20% copayment:

c. Mary's total cost:

Answer 1

A.) The insurance company's payment is 80% of the total minus the $500 deductible, so:
(10000 - 500) * .8 = 7600

B.) To find the Copay, you do almost the same thing:
(10000 - 500) * .2 = 1900

C.) Mary's Total Cost: 1900 + 500 = 2400.00