Question

Last year, Mary had a health insurance policy with a $750 deductible and 20% coinsurance. Her total medical expenses
for the year were $12,500.
Mary's total out-of-pocket costs were
for the year.

Answer 1

Answer:

Mary's total out-of-pocket costs = $3,250

Explanation:

Formula:

Deductible + Coinsurance dollar amount = Out-of-Pocket cost

Step 1:

The deductible amount that paid by the insured is $750.

Step 2:

The coinsurance dollar amount that paid by the insured – 20% of $12,500 = $2500

Step 3:

Deductible + Coinsurance dollar amount = Out-of-Pocket cost

$750 +  $2500 = $3,250