Question

Sheldon has a traditional health insurance plan. He has a $200 deductible. The level of co-insurance for his plan is 90/10, where 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

Answer 1

The answer is "$1,170".

Sheldon has a traditional health insurance plan. He has a $200 deductible.

Sheldon incurs a $1,500 hospital bill

The level of co-insurance for his plan is 90/10, where 10 represents Sheldon’s portion.

how much money will the insurance company pay for the bill = ?

$1500 - $200 deductible = $1300.

Then he has to pay 10% of that

10% of $1300 = $130.

Now,

$1300 - 130 = $1170