Scan Medical Insurance

Finance Homework Pleaaaaaaaaaaaaasssseee!!!!!!!?

Sarah's comprehensive major medical health insurance plan at work has a deductible of $1,240. The policy pays 79 percent of any amount above the deductible. While on a hiking trip, Sarah contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $9,330. A friend told her that she would have paid less if her policy had a stop-loss feature that capped her out-of-pocket expenses at $3,500. Required: (a) Calculate the total amount Sarah would pay under the current policy. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Sarah's co-insurance cost $ ____________________ Deductible $ __________________________ Total $ ______________________________ Thank you for your help. God bless.

Public Comments

1. 1959.3 1240. 3199.3
2. This one is EASY: 9,330 in medical bills - 1,240 deductible = 8,090 in bills for insurance company Sarah's co-insurance cost is therefore 8,090 x (1 - 0.79) = 8,090 x 0.21 = 1,698.90 This amount plus her deductible is therefore 1,698.90 + 1,240 = 2,938.90 As a bonus answer: Sarah's friend is WRONG about paying less under a stop-loss feature capping out-of-pocket expenses at $3,500. Enjoy!