Question

Sally Jones pays $50.00 a month for group health insurance. There is a $300 deductible. Her medical bills for the last year were $2,600.00. Linda's insurance company provided payment of 80% of the bills less the deductible. What was the insurance company's payment?

Answer 1

Given

Find out the  what was the insurance company's payment .  

To proof

As given

Sally Jones pays $50.00 a month for group health insurance

There is a $300 deductible

Her medical bills for the last year were $2,600.00

Linda's insurance company provided payment of 80% of the bills less the deductible.

Deductible

The  amount of money you will pay in an insurance claim before the insurance company starts paying you.

medical bill reducing the deductible = $2,600 -  $300

                                                             =  $2300

80 % is written in the decimal form

$= \frac{80}{100}$

= 0.8

than the equation becomes

Linda's insurance company provided payment  = 0.8× 2300

                                                                                = $1840

Therefore the the insurance company's payment be  $1840 .

Hence proved