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.)

Solutions

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


Related Solutions

Consider a relatively simple health insurance plan with the following provisions. Office visits require a​co-payment of...
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...
Consider a relatively simple health insurance planwith 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$40.Emergency room visits have a$275co-payment. Surgical operations have a$1,300 deductible (the first$1,300is paid out of pocket). The monthly premium is$400.During a one-year period, somebody insured by this health insurance has the expenses shown to the right. Complete parts (a) and (b) below.       ExpensesTotal Cost       Feb. 18: Office visit$150       Mar. 26:Emergency room$720       Apr. 23: Office visit$150       May 14: Surgery$7,000       July 1: Office visit$150       Sept. 23:...
Craig's health insurance has no deductible and $15 co-payment for all physician visits and $25 for...
Craig's health insurance has no deductible and $15 co-payment for all physician visits and $25 for all labs. Craig goes to the local laboratory for a blood draw on January 1st. The bill was $80. How much will Craig pay for the visit?
Natalie's health insurance has no deductible and a $45 co-payment for all physician visits. Natalie visited...
Natalie's health insurance has no deductible and a $45 co-payment for all physician visits. Natalie visited the doctor for a sprained ankle on January 1st. The bill was $90. How much will Natalie pay for the visit?
A store clerk has an individual health insurance plan with a $40 co-payment for in-network doctor...
A store clerk has an individual health insurance plan with a $40 co-payment for in-network doctor visits. She goes to her doctor, who is in-network, twice during the year. What can she expect to pay for her health care for the year?
The patient's health insurance plan has a $750 deductible for hospital visits, and then it covers...
The patient's health insurance plan has a $750 deductible for hospital visits, and then it covers 100 percent of hospital charges. The patient's first hospital visit this year had charges of $612. The patient was subsequently admitted to the hospital a second time this year, and the charges totaled $358. How much will the patient be billed for each visit? Visit 1 Visit 2 How much will the health insurance plan reimburse for each visit? Visit 1 Visit 2
Suppose that in the absence of insurance, the inverse demand for office doctor visits is given...
Suppose that in the absence of insurance, the inverse demand for office doctor visits is given by the equation P1 = 150 - 30Q. Graph the demand curve. Graph the demand curve when the person has health insurance with a coinsurance rate of 25%. What is demand for visits with and without insurance when doctors receive $60/visit?
suppose that in the absence of insurance, the inverse demand for office doctor visits is given...
suppose that in the absence of insurance, the inverse demand for office doctor visits is given by the equation P=150 - 30Q. a. Graph the demand curve. b. graph the demand curve when the person has health insurance with a coinsurance rate of 25%. c. what is demand for visits with and without insurance when doctors receive €60/visit?
Suppose that a consume has a health insurance program with $10 co-payment per doctor visit. If...
Suppose that a consume has a health insurance program with $10 co-payment per doctor visit. If the consumer purchases 6 doctor visits and the bill charged by the Doctor for 6 visi $360the cost per visit paid by a third party is:
You have a health plan with a $5,000 deductible, a 20% co-insurance and a $10,000 out...
You have a health plan with a $5,000 deductible, a 20% co-insurance and a $10,000 out of pocket maximum. You need surgery, which will require 3 days in the hospital. The hospital bill is $150,000 total. How much will you pay?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT