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Jack and Jill are both considering seeing a medical specialist who charges $300 per consultation
Jack and Jill are both considering seeing a medical specialist who charges $300 per consultation. The insurance company charges Jack a $25 copay. Jill has a different policy that requires a 25% coinsurance payment, but no copay. Based on these numbers, which of the following is true?
a. Neither Jack nor Jill will see the medical specialist.
b. Both will see the medical specialist.
c. Jack is more likely to see the medical specialist.
d. Jill is more like to see the medical specialist.
Expert Solution
The correct answer to the given question is option c. Jack is more likely to see the medical specialist.
The amount paid by Jack to the medical specialist is given by:
- = Copay for Jack
- = $25
The amount paid by Jill to the medical specialist is given by:
- = Coinsurance payment for Jill
- = (25% * consultation charge)
- = (25% * $300)
- = $75
Since the amount paid by Jack to the medical specialist is lower than that paid by Jill, Jack is more likely to see the medical specialist.
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