Lance, a volunteer baseball coach, was hit by a hard line drive. As a result of the injury, Lance was taken to the emergency room for treatment and admitted to the hospital. Lance's covered expenses totaled $4,000. How much of the $4,000 will Lance have to pay if these are his first medical expenses of the year and he has the following health insurance coverage?
$500 deductible per year 80/20 coinsurance
$1,000 per year out-of-pocket coinsurance capa. $500b. $700c. $1,000d. $1,200