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?
A. $1,170
B. $1,350
C. $1,150
D. $970

Answer 1

Answer:

A. $1,170

Explanation:

Given :

Co-insurance  =  10%

Deductible = $200

Incurs = $1,500

To Find :

Total money the insurance company will pay for the bill

Solution:

Total amount insurance company must pay for his

co - insurance

10%

(100 - 10) = 90%

1,500 - 200

= 1300

$\frac{90}{100}\cdot 1300$

$\frac{90}{100}\cdot \:1300=1170$

So the total amount the insurance company must pay

= $1170