Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expens
2 answers:
Answer
Given
Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible.
She had medical expenses of $18,240.00.
First find out the insurance company's payment .
Definition of deductible
The insurance deductible is the amount of money you will pay in an insurance claim before the company starts paying you.
Thus
Medical expenses after reducing the deductible = $18,240 - $250
= $ 17990
As given
The policy paid 80% of Mary covered charges less deductible.
80% is written in the decimal form.
= 0.80
insurance company's payment = 0.80 × 17990
= $14392
Second find the 20% copayment
20 % is written in the decimal form.
= 0.20
Thus
The 20% copayment = 0.20 × 17990
= $3598
Third find the Mary's total cost
Mary total cost = Deductible cost + 20% copayment cost
= 250 + 3598
= $ 3848
Thus the Mary total cost is $ 3848 .
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