A client is diagnosed with a serious illness that requires extensive medical treatment and rehabilitation. His health insurance policy has a $2,000 deductible and a 90/10 coinsurance clause, with an out-of-pocket maximum of $5,000. If his total covered medical expenses amount to $20,000, how much will the client pay out-of-pocket?

Correct answer: B. $3,800

First, the client pays the $2,000 deductible. Remaining expenses are $20,000 - $2,000 = $18,000. Under 90/10 coinsurance, the client pays 10% of $18,000, which is $1,800. Total out-of-pocket for deductible + coinsurance is $2,000 + $1,800 = $3,800. However, the policy has an out-of-pocket maximum of $5,000. Since $3,800 is less than $5,000, the client's total out-of-pocket cost is limited by the coinsurance calculation, not the maximum. Wait, the question asks 'how much will the client pay out-of-pocket' and the out-of-pocket maximum is $5,000. The calculation showed $3,800. Let's re-evaluate. The out-of-pocket maximum INCLUDES the deductible and coinsurance paid by the insured. So, $2,000 (deductible) + $1,800 (coinsurance) = $3,800. This is less than the $5,000 OOP maximum, so the client pays $3,800. The correct answer should be $3,800. Let's recheck the question and options. Ah, I see the mistake in my reasoning: if the total calculated out-of-pocket (deductible + coinsurance) is *less than* the out-of-pocket maximum, then the calculated amount is what the client pays. If it is *more than* the out-of-pocket maximum, then the client pays *only* the out-of-pocket maximum. In this case, $3,800 is less than $5,000, so the client pays $3,800. The correct answer should be B. My previous reasoning for C was incorrect. Let's adjust the answer and explanation accordingly.