Question

Ross needs to have a procedure done, and since he is over 65 he is on Medicare. Medicare says that according to their plan the allowed amount is 5 6 of what the doctors office charges. Of that allowed amount they will pay 3 4 and Ross will be out of pocket 1 4 . If the procedure costs $12,000, how much will Ross have to pay?
A) $2,500

B) $3,000

C) $7,500

D) $8,000

Answer 1

First determine how much is allowed and then determine what  

1

4

of that amount is.

5

6

(12000) = 10000--this is the allowed amount. Ross has to pay  

1

4

of this so he has to pay $2,500

The answer is A) $2,500

Answer 2

I think the answer would be B. 3,000