In: Finance
Suppose that you have private health insurance. Last year you were injured once, which represented the only time you had a medical expense. At the time, you paid $25 to see your doctor, who referred you to a specialist. The total bill for the specialist was $1,100. You paid the first $500, then 10% of the additional $600 (equal to $60). Which of the following is the deductible?
a. |
the difference between the $25 paid to the doctor and what the doctor actually received (that is, the amount the insurance company paid the doctor) |
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b. |
the $500 you paid toward the cost of the specialist |
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c. |
the $25 paid for the doctor visit |
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d. |
the $60 paid toward the cost of seeing the specialist |
b.the $500 you paid towards the cost of the specialist.
The amount paid initially before any amount is received by the doctor under health insurance is called deductible.
here, $500 is paid initially so this amount will be the deductible.