Question

In: Accounting

Consider a relatively simple health insurance plan with the following provisions. Office visits require a co-payment...

Consider a relatively simple health insurance plan with the following provisions. Office visits require a co-payment of $30. Emergency room visits have a $250 co-payment. Surgical operations have a $1,800 deductible (the first $1,800 is paid out of pocket). The monthly premium is $350. During a one-year period, somebody insured by this health insurance has the expenses shown to the right. Complete parts (a) and (b) below.

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

$_______

Expenses	Total Cost
Feb. 18: Office visit	$150150
Mar. 26: Emergency room	$720720
Apr. 23: Office visit	$150150
May 14: Surgery	$7 comma 5007,500
July 1: Office visit	$150150
Sept. 23: Emergency room	$900

.

(Type a whole number.)

Expert Solution

(a)

Refer to the data provided in the problem

Total amount paid for office visits is

Money one has to pay for office visits = $30 x 3 = $90

Amount paid for emergency room is =$250 x 2 = $500

amount paid for surgery is =$1,800

Premium per month =$350

Total amount to be paid by the end of the year =$350 x 12 = $4200

So, the total amount paid is=$ (90+500+1800+4200)

= $ 6,590

Hence,the total amount for the health care expenses with the insurance policy is $6,590

(b)

Add all the expenses to find the total expenses at the end of year without insurance policy:

Total expenses by the end of an year=$(150+720+150+7500+150+900)

=$ 9,570

Thus, the total health care expenses without the insurance policy is $9,570

ekkarill92 answered 2 years ago

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