10.14 You have a $25 copayment plus a 20% coinsurance policy. Consider the following scenario:

a. You have a prescription for a generic drug costing $100.

b. You pay a $25 copayment; the remaining amount is ($100 − $25) = $75.

c. Your 20% coinsurance portion of the balance is ($75 × 0.20) = $15.

d. With your copayment and coinsurance, your $100 prescription actually costs you:

$25 (copayment) + $15 (coinsurance) = $40 (total cost). Your insurance company pays the remaining $60.

a. What would be your total cost to fill the prescription if your doctor had selected to go with the brand-name drug at a cost of $250 instead of the generic option?

b. What amount of the cost would the insurance company have covered?