A patients total surgery charges are $1,278. The patient must pay the annual deductible of $1000 & the policy states a 80-20 coinsurance. What does the patient owe?

The correct answer is - $1056.60

Explanation:

Given:

A patient's total surgery charges are $1,278.

The patient must pay the annual deductible of $1,000.

The policy states an 80-20 coinsurance

Solution:

Insurance would be effective on : $1,278 - $1,000 = 278

The policy states an 80-20 coinsurance

20% = 0.20 in fraction

20% of patients surgery cost  =  0.20 ×  $278

 = $ 55.6

Patients owe = Deductible cost + 20% of patients surgery cost

 = $1000 + 55.6

= $ 1055.6

Therefore, the patient owes $1055.6.

depends where it is? i got mine on my arm and from 1-10 it was a 3 different spots react differently