Question

Elise's health insurance policy has a deductible of $500, a $20 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments. She visited the doctor four times last year (doctor's fee is $40 per visit) and underwent a surgery that cost $3,000. If instead she had had a policy with a $1,000 deductible, a $10 copayment on doctor visits, and no coinsurance, which of the following is TRUE regarding her expenses (excluding the cost of the insurance)?

With the higher deductible, she would have saved between $70 and $249 relative to what she paid with her actual policy.

With the higher deductible, she would have saved more than $250 relative to what she paid with her actual policy.

With the higher deductible, she would have spent at least $300 more than she paid with her actual policy.

With the higher deductible, she would have spent between $50 and $250 more than she paid with her actual policy.

Answer 1

Answer-- With the higher deductible, she would have spent between $50 and $250 more than she paid with her actual policy.

The deductible policy means the amount we pay for covered health insurance before the plan started. one we paid the deductible then we need to pay only copayment or coinsurance.