Eileen's health insurance had a $500 deductible and 80% / 20% coinsurance. Her first claim of the policy year amounted to $1,000, of which she paid $600. How much was her coinsurance?

Question

Business

Jayla Harvey

17 June, 02:35

Eileen's health insurance had a $500 deductible and 80% / 20% coinsurance. Her first claim of the policy year amounted to $1,000, of which she paid $600. How much was her coinsurance?

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Answers (1)

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Carla Stuart · Answer 1

The correct answer is: $100.

Explanation:

Co-Insurance is a cost-sharing agreement between an insurer and an insured party. It says the insured will cover a set percentage of cost after paying the deductible. In co-insurance, the insurer and the insured share the risk. Some companies add a stop-loss clause to a co-insurance policy to protect themselves from, especially large claims.

In the example:

Total claim = $1000 Deductible = $500 Balance after deductible = $1000 - $500 = $500

Co-insurance = Balance after deductible x 20% Co-insurance = $500 x 20% Co-insurance = $100