How much will Kim's health insurance policy pay for her hospital claim totaling $14,000?

Prepare for the Accredited Financial Counselor Exam. Study using flashcards and multiple-choice questions, each equipped with hints and elaborate explanations. Equip yourself for success!

Multiple Choice

How much will Kim's health insurance policy pay for her hospital claim totaling $14,000?

Explanation:
Understanding how a deductible works is key. Health insurance often requires you to pay a deductible before the insurer starts paying the rest of covered charges. Here, the hospital bill is 14,000 and the deductible is 1,750, so you pay that amount first. After meeting the deductible, the remaining charges are 14,000 − 1,750 = 12,250, which the insurer covers if there are no coinsurance or copayments applied. So the insurer’s payment would be 12,250, with you responsible for 1,750.

Understanding how a deductible works is key. Health insurance often requires you to pay a deductible before the insurer starts paying the rest of covered charges. Here, the hospital bill is 14,000 and the deductible is 1,750, so you pay that amount first. After meeting the deductible, the remaining charges are 14,000 − 1,750 = 12,250, which the insurer covers if there are no coinsurance or copayments applied. So the insurer’s payment would be 12,250, with you responsible for 1,750.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy