A health plan has a deductible of $500 and coinsurance of 80/20. If a covered loss is $1,500, how much does the insured pay?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

A health plan has a deductible of $500 and coinsurance of 80/20. If a covered loss is $1,500, how much does the insured pay?

Deductibles and coinsurance determine how costs are split when a loss occurs. First, you pay the deductible amount, then the remaining expense is shared according to the coinsurance percentage. With a $500 deductible, you cover that first. The remaining covered loss is $1,000. At 80/20 coinsurance, you pay 20% of $1,000, which is $200, and the insurer pays 80% of $1,000, which is $800. Your total out-of-pocket is $500 + $200 = $700. The insurer would pay $800, and the total amount to cover the loss remains $1,500.

A health plan has a deductible of $500 and coinsurance of 80/20. If a covered loss is $1,500, how much does the insured pay?

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

A health plan has a deductible of $500 and coinsurance of 80/20. If a covered loss is $1,500, how much does the insured pay?

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