Mr. Johnson came to the office today complaining of headache and upset stomach. He has the traditional Medicare fee-for-service plan. Your office's usual fee for an established patient visit is $125. Medicare's allowable charge is $100. If Mr. Johnson does not have Medigap insurance, how much will he have to pay for this visit?
A. $20
B. $25
C. $80
D. $100
E. $125
A. $20
With an 80-20 coinsurance, Mr. Johnson will be responsible for 20% of the allowable charge; or 20% of $100, which is $20.
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