select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level…

select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level of co - insurance for his plan is 70/30 where 30 represents pacos portion. he also has a one - time co - payment of $20. if paco incurs a $1,000 hospital bill, how much money will he owe out - of - pocket for the bill?\n\na. $845\nb. $720\nc. $545\nd. $620

select the correct answer. paco has a traditional health insurance plan. his deductible is $750. the level of co - insurance for his plan is 70/30 where 30 represents pacos portion. he also has a one - time co - payment of $20. if paco incurs a $1,000 hospital bill, how much money will he owe out - of - pocket for the bill?\n\na. $845\nb. $720\nc. $545\nd. $620

Answer

Answer:

D. $620

Explanation:

Step1: Calculate amount after deductible

First, subtract deductible from bill. Since the bill is $1000 and deductible is $750, the remaining amount is $1000 - 750=250$.

Step2: Calculate co - insurance amount

Paco's co - insurance portion is 30%. So the amount he pays from the remaining $250 is $250\times0.3 = 75$.

Step3: Add co - payment

He has a one - time co - payment of $20.

Step4: Calculate total out - of - pocket

Total out - of - pocket is deductible + co - insurance amount+co - payment, which is $750+75 + 20=620$.