Connie Has a Major Medical Policy with a $200 Deductible

question 1

Multiple Choice

Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause.If she has eligible medical expenses of $10,000,how much will be paid by her insurer?

• A)$7,300
• B)$7,350
• C)$7,500
• D)$9,800

---

Definitions:

Law of Demand

The economic principle that, all else being equal, there is an inverse relationship between the price of a good and the quantity demanded.

Other-Things-Equal Assumption

The assumption that factors other than those being considered are held constant. Also known as the ceteris paribus assumption.

Supply

The total amount of a specific good or service that is available to consumers at current prices.

Excise Tax

A tax imposed on specific goods, services, or activities, such as tobacco, alcohol, and fuel, usually intended to discourage their use or generate revenue.