Your have an employee only coverage. Your annual in-network deductible is $1,700, in-network co-insurance is 20%, in-network out-of-pocket maximum is $3,400.

The deductible is the amount you must pay out-of-pocket before the plan will begin to pay benefits.

Coinsurance is the percent of a covered healthcare service you pay after you have paid your deductible. For example, if your coinsurance is 20%, you pay 20% of the cost and the plan will pay the other 80%.

The out-of-pocket maximum is the most youll have to pay for covered services in a plan year. After you spend this amount on deductibles, copays, and coinsurance, the plan begins to pay 100% of the allowed amount for covered services.

2. You estimate that your total medical bill, before any insurance payment, would be $3,400. How much would be your responsibility? Assume this is the only medical bill you would have for the year.

a. $2,040

b. $680

c. $3,400

d. $1,700