Comparing the Costs of a Regular Health Insurance Policy and an HMO. A health insurance policy...

Comparing the Costs of a Regular Health Insurance Policy and an HMO. A health insurance policy pays 65 percent of physical therapy cost after a $200 deductible. In contrast, an HMO charges $15 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each?

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Expert Solution

Cost with insurance = 200( first 4 sessions) + [ 0.35 * ( 6 * 50)( 6 sessions) = $305

HMO cost = 15 * 10 = $150

Saving = 305 - 150 = $155

jeff jeffy answered 1 year ago

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