Question

Ross needs to have a procedure done, and since he is over 65 he is on Medicare: Medicare says that according to their plan the allowed amount is 7/8 of what the doctors office charges. Of that allowed amount they will pay 3/4 and Ross will be out of pocket 1/4. If Ross had to pay $262.50, how much did the office want to charge for the procedure?

Answer 1

It’s is going to me $100

Answer 2

$763.63

Explanation:

Given: Ross needs to have a procedure done, allowed amount by is 7/8 of what the doctor charges, Ross pays 1/4 and medicare pays 3/4 of amount.

To Find: If Ross had to pay $262.50, how much did the office want to charge.

Solution:

Let the amount asked by the doctor's office
`=\text{x}`

Allowed amount in medicare plan
`=(7)/(8)\text{x}`

Amount left to be paid by Ross
`=\text{x}-(7)/(8)\text{x}=\frac{\text{x}}{8}`

amount paid by medicare plan
`=(3)/(4)\text{of allowed amount}`

`=(3)/(4)*(7)/(8)\text{x}`

`(21)/(32)\text{x}`

Amount paid by Ross
`=(1)/(4)\text{of allowed amount}+\text{amount left to be paid by Ross}`

`(1)/(4)*(7)/(8)\text{x}+(1)/(8)\text{x}`

`(11)/(32)\text{x}`

Total amount paid by Ross
`=\$262.50`

`(11)/(32)\text{x}=\$262.5`

`\text{x}=(32*262.5)/(11)`

`\text{x}=\$763.63`

Therefore doctor's office want to charge $763.63 for procedure