Question

An insured covered by a group major medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. assuming the plan had a $1,000 deductible and an 80/20 coinsurance clause, how much will the insured be responsible to pay with $11,000 in covered medical expenses?

Answer 1

This will be done as follows; 
Total bill is $11,000
Subtracting the Deductible $1,000, we get a remainder of $10,000
Coinsurance is 80% or 0.8
Therefore; the amount insurer pays will be 0.8 × $10,000 = $8,000
On the other hand ; the insured's coinsurance will be;
0.2 or 20% of $10,000 we get $2,000
Thus, the insured's total cost would be; the insured's coinsurance + the insured's deductible; 
We get; $2000 +$1000 = $3,000
Therefore; the correct answer is $3,000