Fidel Baez has a health insurance plan with a $150.00 deductible. The plan covers 80 percent of his hospital charges. Fidel's recent health care costs include $300.00 in co-payments and a hospital bill of $2,300.00. What amount did he pay?

Is it $910.00?

He paid $300 in copayments, so that means that the deductible no longer applies on subsequent payments.

Out of the $2300 in hospital bill, he has to pay the copayment of 80%
= 2300*0.80
= $1840
added to the previous copayment, he paid a total of
1840+300 = $2140

Please explain how you got $910 in case I missed something.

Hi.

The PLAN covers 80 percent. Fidel only pays 20% of the hospital charges. The deductible (according to my textbook) is supposed to be added to the amount that he is subjected to pay. (Doesn't make sense to me as deductible should mean that the amount would be reduced.)

460 (20%)+ 300 (payments)+ 150=910.

Yes, you're right.

I misread the 80% as the copayment.

Most health insurance companies that I have seen have annual deductibles, which I assumed. Here I interpreted that the $300 was a previous payment, which exceeds the annual deductible.

However, since no mention was made of an annual deductible, it is therefore assumed to be per claim as you did, which makes your calculation valid.

So he pays
2300*(1-0.8)+150 + 300
=$910

Just in case, double-check with your teacher to see if deductibles for health policies are annual or per claim. The reason for that is most claims are small. With a $150 per claim deductible, the insured will not get much coverage except for hospital stays.

To determine how much Fidel paid, we need to calculate the amount he paid in co-payments, the amount covered by his insurance plan, and the portion that he needs to pay out-of-pocket.

First, let's calculate the amount Fidel paid in co-payments. He incurred $300.00 in co-payments.

Next, let's calculate the amount covered by Fidel's insurance plan. Since his plan covers 80 percent of hospital charges, the remaining 20 percent is what he needs to pay out-of-pocket.

The hospital bill is $2,300.00, so the amount covered by the insurance plan is 80 percent of $2,300.00, which is $2,300.00 * 0.80 = $1,840.00.

Next, let's calculate the portion that Fidel needs to pay out-of-pocket. This is the difference between the hospital bill and the amount covered by the insurance plan. So, $2,300.00 - $1,840.00 = $460.00.

Now, let's add up the co-payment amount and the out-of-pocket amount to find the total amount that Fidel paid. $300.00 (co-payment) + $460.00 (out-of-pocket) = $760.00.

Therefore, the correct amount that Fidel paid is $760.00, not $910.00.