Becky’s comprehensive major medical health insurance plan at work has a deductible of $770. The policy pays 80 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and an eight-day hospital stay, totaled $8,933. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,200.
a. Calculate the total amount Becky would pay under the current policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Becky’s Co-Insurance cost | ? |
| Deductible | ? |
| Total personal Cost | ? |
b. Would a $3,200 stop-loss provision on her current policy have reduced Becky’s cost for this illness? Yes or No?
A health insurance policy pays 65 percent of physical therapy costs after a deductible of $420. In contrast, an HMO charges $26 per visit for physical therapy. How much would a person save with the HMO if he or she had 12 physical therapy sessions costing $105 each?
| Savings with HMO | ? |
The Tucker family has health insurance coverage that pays 70 percent of out-of-hospital expenses after a deductible of $760 per person. If one family member has doctor and prescription medication expenses of $2,900, what amount would the insurance company pay?
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Insurance payment |
? |
