Question

Mary has to prepare a budget for the upcoming year. To know how much to set aside for medical expenses, she decides to take a look at how much she spent last year on keeping herself healthy. She pays $100 a month for her health insurance. Here are the details of her health insurance plan: the policy pays 80% of all hispital and pharamcy bills, with no out-of-pocket maximum of $400 befoer the insurer pays 100% The plan also requires a $20 co-pay each time she visits a doctor or picks up a prescribed medicine. The plan does not cocver dental or vision health needs. She has kept receipts for the last calendar year:

February

- Two doctors visits, costing $250

- One co-pay for prescription medicine, a $60 cosst

April

- Emergency visit to the dentist to remove tooth: $600

August

- Doctors visits, costing $250

- Visit to the Radiolosgist for x-rays, costing $850

- Follow-up visit to the radiologist: $300

November

- One doctors visit for a yearly physical, costing $400

Last year:

a- How much did Mary pay in co-pay overf the course of the year?

b- What percent of the dentist's bill did Mary have to pay herselft?

c- What was the total cost of doctor's bills and medicine?

d- In what month did Mary meet the out-of-pocket maximum of $400?

e- Of the $400 cost of the annual physical exam, how much did Mary have to pay?

Answer 1

Part a:
Particulars	Amount ($)
doctor visit cost	250.00
Prescribed medicine	60.00
doctor visit cost	250.00
X-ray and visit	850.00
Follow up visit to radiologist	300.00
Yearly doctor visits	400.00
Total medical expenditures	2,110.00
Less: Co pay	20.00
	2,090.00
Less: insurance pay (2090 x 80%)	1,672.00
Payment made by Mary	418.00
Add: Dentist visit payment borne by Mary	600.00
Total payment made by Mary last year	1,018.00
Part b:
Percentage of dentist visit payment made by insurance	Zero because the insurance plan does not cover dental and health visiosn
Part c:
doctor visit cost	250.00
Prescribed medicine	60.00
doctor visit cost	250.00
X-ray and visit	850.00
Follow up visit to radiologist	300.00
Yearly doctor visits	400.00
Total cost of doctor's bill and medicine	2,110.00
Part d:
In the month of August Marry meet the out of pocket maximum of $400
Part e:
Yearly visits cost for physical check up	400.00
Amount to be paid by Mary (400 x 20%)	80.00