Ace the 2025 Louisiana Life and Health Test – Revitalize Your Future!

Disable ads (and more) with a membership for a one time $4.99 payment

Question: 1 / 190

Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay?

$500

$900

To determine how much the group insurance carrier will pay for Amy's covered health care services, we must first apply the deductible, followed by the coinsurance calculation.

1. **Deductible**: Amy has a $500 deductible. This means she must pay the first $500 of her medical expenses out of her own pocket before the insurance starts to contribute.

2. **Total expenses**: Amy incurred $1,500 in health care services. After applying the $500 deductible, the remaining amount eligible for coinsurance is:

\[

1,500 - 500 = 1,000

\]

3. **Coinsurance**: The policy has a 90% coinsurance provision, which means the insurance will cover 90% of the remaining $1,000. Thus, we calculate how much the insurance will pay:

\[

1,000 \times 0.90 = 900

\]

Therefore, the group insurance carrier will pay $900 for Amy's covered health care services after considering the deductible and applying the coinsurance. This is why the answer of $900 is correct.

Get further explanation with Examzify DeepDiveBeta

$1,000

$1,350

Next

Report this question