Question

Consider a relatively simple health insurance plan with the following provisions. Office visits require a​co-payment of $30. Emergency room visits have a $220 co-payment. Surgical operations have a $1,800 deductible ( the first $1,800 is paid out of pocket). The monthly premium is $380. During a one-year period, somebody insured by this health insurance has the expenses shown below.  Complete parts​ (a) and​ (b) below.

Expenses	Total Cost
Feb 18: Office Visit	$175
Mar 26: Emergency Room	$580
April 23: Office Visit	$175
May 14: Surgery	$7,000
July 1 :Office Visit	$175
September 23: Emergency Room	$900

a. Determine the​ person's health care expenses for the year with the insurance policy.

The​ person's health care expenses with the insurance policy are $____.

​(Type a whole​ number.)

b. Determine the​ person's health care expenses for the year without the insurance policy.

​The​ person's health care expenses without the insurance policy are $___.

​(Type a whole​ number.

Answer 1

Here first understand each term . We have an insurance plan of monthly premium of $380 This is the amount we pay each month for our health coverage .

Deductible is the amount we pay for our service before our plan starts paying.

Co payment is the amount we pay for a service .the rest of the cost is covered by insurance.

a. So for taking insurance policy for a year he should pay for premium = $380 * 12 = $4560

And for surgical operation he should pay deductible = $1800

So for office visit in feb he pay only $30

for emergency room visit in march he pay only $220

for office visit in April he pays $30

and coming to surgery it cost $ 7000 but we have payed a total of $1800 deductible and $4560 year policy

7000 > 1800+4560 So it will be payed by company

For july office visit he pays $30 and for september Emergency room he pays $220 copayment

So the total he pays or expense = 4560+1800+30+220+30+30+220

= $6890

b. Without insurance just take the total cost = 175+580+175+7000+175+900 = $9005