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? a. $845 b. $720 c. $545 d. $620
Answer
Answer:
A. $845
Explanation:
Step1: Subtract deductible from bill
$1000 - 750= 250$
Step2: Calculate Paco's co - insurance amount
$250\times0.3 = 75$
Step3: Add deductible, co - insurance and co - payment
$750+75 + 20=845$