Answer:
The correct answer is - $1056.60
Step-by-step 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.