Becky’s comprehensive major medical health insurance plan at work has a deductib

Question

Becky’s comprehensive major medical health insurance plan at work has a deductible of $730. 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 a seven-day hospital stay, totaled $9,233. 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 $4,700.

  

Calculate the total amount Becky would pay under the current policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

  

Would a $4,700 stop-loss provision on her current policy have reduced Becky's cost for this illness?

Becky’s comprehensive major medical health insurance plan at work has a deductible of $730. 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 a seven-day hospital stay, totaled $9,233. 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 $4,700.

Explanation / Answer

a.

Becky insurance cost=(9233-730)×*20%

=$1700.60

b.

Becky would have paid the first $4700. She paid

$ 2269.40 less with her current policy( 4700-2430.40)

  Becky's co-insurance cost $ 1700.60   Deductible $ 730   Total personal cost $ 2430.60   

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