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 clausewith a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had nolong-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?CHow much income did Theresa lose?

For the Medical Insurance coverage which are incurred with the total deductible amount and…

Answered: Theresa Morgan of Boone, IA, age 55,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $132,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $290 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. How much of Christina’s direct medical expenses was paid by her insurance policy? $ What did Christina have to pay for her nursing home care? $ How much income did Christina lose? $
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