Rachel's health insurance policy has a monthly premium of $500. She has a $1,000 annual deductible, after which she pays 80% and the insurance company pays 20%. Her maximum annual co-insurance is $2,000. What is Rachel's maximum out of pocket cost per year, not counting any co-pays she might incur? O $2,000 O $3,000 O $3,500 O $9,000

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
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Rachel's health insurance policy has a monthly premium of $500. She has a $1,000
annual deductible, after which she pays 80% and the insurance company pays 20%.
Her maximum annual co-insurance is $2,000.
What is Rachel's maximum out of pocket cost per year, not counting any co-pays she
might incur?
O $2,000
O $3,000
O $3,500
O $9,000
Transcribed Image Text:Rachel's health insurance policy has a monthly premium of $500. She has a $1,000 annual deductible, after which she pays 80% and the insurance company pays 20%. Her maximum annual co-insurance is $2,000. What is Rachel's maximum out of pocket cost per year, not counting any co-pays she might incur? O $2,000 O $3,000 O $3,500 O $9,000
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