Dirk required surgery for kidney impairment. His total bill for medical services was $50,000. Dirk has a medical expense policy with a $1,000 calendar-year deductible and a $4,000 annual out-of-pocket limit. His coinsurance percentage is 20 percent. The out-of-pocket limit applies to coinsurance only. Assuming this surgery and hospitalization were the first medical care that Dirk received during the year and that all of the hospital services were eligible for coverage under the policy, how much of the $50,000 bill will the insurer pay?
Dirk required surgery for kidney impairment. His total bill for medical services was $50,000. Dirk has a medical expense policy with a $1,000 calendar-year deductible and a $4,000 annual out-of-pocket limit. His coinsurance percentage is 20 percent. The out-of-pocket limit applies to coinsurance only. Assuming this surgery and hospitalization were the first medical care that Dirk received during the year and that all of the hospital services were eligible for coverage under the policy, how much of the $50,000 bill will the insurer pay?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Qd 69.
Transcribed Image Text:Dirk required surgery for kidney impairment. His total bill for medical services was $50,000. Dirk has a medical expense policy with a
$1,000 calendar-year deductible and a $4,000 annual out-of-pocket limit. His coinsurance percentage is 20 percent. The out-of-pocket
limit applies to coinsurance only. Assuming this surgery and hospitalization were the first medical care that Dirk received during the year
and that all of the hospital services were eligible for coverage under the policy, how much of the $50,000 bill will the insurer pay?
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