pt2 redo: A health insurance policy pays 85 percent of physical therapy costs af
ID: 2717289 • Letter: P
Question
pt2 redo:
A health insurance policy pays 85 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges $20 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each? Assume the person has no other medical expenses. (Do not round intermediate calculations.)
Amount of savings:
(last WRONG answer: $75)
A health insurance policy pays 85 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges $20 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each? Assume the person has no other medical expenses. (Do not round intermediate calculations.)
Amount of savings:
(last WRONG answer: $75)
Explanation / Answer
Total expense = 10*50 = 500
expenses through HMO = 10*20 = 200
Expenses through insurance policy = 200 + (500-200)*(1-0.85) = 245
Savings = 245 -200 = $45
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