Mr. Johns has a health insurance policy with a $1,000 deductible and a 20% co-insurance requirement for hospital and doctor charges. Thus Mr. Johns is required to pay 20% and the insurance company pays 80% of allowable charges. He becomes ill and is admitted to the hospital. When he is discharged, his hospital bill is $5,000, and his doctor bills are $2,500. What is the amount the insurance company will pay on this claim