David Chen was seriously injured in a snowboarding accident that broke both his

Question

David Chen was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included 5 days of hospitalization at $1,200 a day, $9,600 in surgical fees, $5,000 in physician's fees (including time in the hospital and six follow-up office visits), $520 in prescription medications, and $2,200 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If David has an indemnity plan that pays 80% of his charges with a $250 deductible and has a $5,000 stop-loss provision, how much will he have to pay out-of-pocket? Round to the nearest dollar. $ What would David's out-of-pocket expenses be if he belonged to an HMO with a $30 co-pay for office visits? Round to the nearest dollar. $

Explanation / Answer

Total Expenses Hospitalisation 5*1200          6,000 Surgical Fees          5,000 Precription Medications             520 Physical Therapy          2,200       13,720 Deductible             250       13,470 Co-insurance Part 20% of 13,470          2,694       10,776 David out of pocket expenses Deductible             250 Co-insurance part          2,694 David out of pocket expenses          2,944 David's out-of-pocket expenses be if he belonged to an HMO with a $30 co-pay for office visits Office Visit 30*5 150

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