Consider a single individual with the following insurance plan:

Annual deductible: $500

Coinsurance: 20%

Annual Out of Pocket Maximum: $3,000

a) The individual undergoes a medical test in January—the first medical expense of the calendar year—for which the negotiated price with their insurance plan is $336. How much should this individual expect to pay out of pocket for this service?

b) Suppose that in February of the same year, the individual had to undergo a procedure—the second medical expense of the calendar year—for which the negotiated price with insurance is $540. How much should this individual expect to pay out of pocket for this service?