Becky's comprehensive major medical health insurance plan at work has a deductible of $710. 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 five-day hospital stay, totaled $9.193. 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 $4,500. o. Calculate the total amount Becky would pay under the current policy (Do not round intermediate calculations. Round your answers to 2 decimal places.) Becky's co-insurance cost Deductible Total personal cost b. Would a $4,500 stop-loss provision on her current policy have reduced Becky's cost for this illness? O Yes O No

Becky's comprehensive major medical health insurance plan at work has a deductible of $710. 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 five-day hospital stay, totaled $9.193. 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 $4,500. o. Calculate the total amount Becky would pay under the current policy (Do not round intermediate calculations. Round your answers to 2 decimal places.) Becky's co-insurance cost Deductible Total personal cost b. Would a $4,500 stop-loss provision on her current policy have reduced Becky's cost for this illness? O Yes O No

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 29P

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Sarah's comprehensive major medical health insurance plan at work has a deductible of $400. The policy pays 80 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $9,440. 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 $3,700. The policy with the stop-loss feature has the same deductible and coinsurance requirement as Sarah's current policy. Determine which policy would have cost Sarah less and by how much. (Round your intermediate calculations and final answer to 2 decimal places.) O Current policy O Stop-loss feature O No difference in Sarah's cost for this claim. Difference amount
Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After being discharged from the hospital, she spent 21 days in a nursing home at a cost of $270 per day. Theresa, who earns $3,700 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $600 deductible and an 80/20 coinsurance clause with a $5,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. In total, Theresa missed 42 days of work. How much of Theresa's direct medical expenses was paid by her insurance policy?
Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After leaving the hospital, she spent 25 days in a nursing home that cost $170 per day. Theresa, who earns $4,500 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. She was out of work for a total of 42 days. How much of Theresa's direct medical expenses was paid by her insurance policy? C How much income did Theresa lose?
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Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $133,000. After being discharged from the hospital, she spent 25 days in nursing home at a cost of $240 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. a. How much of Christina's direct medical expenses was paid by her insurance policy? $ b. What did Christina have to pay for her nursing home care? $ c. How much income did Christina lose? $
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