Question

Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $18,240.00. Calculate: a. the insurance company's payment $ b. the 20% copayment $ c. Mary's total cost $

Answer 1

a. $14,392

b. $3598

c. $3848

Step-by-step explanation:

a. Given,

Medical expenses = $18,240.00,

Deduction = $250

Total payment = 18240 - 250 = $ 17990

Payment percentage = 80%,

Thus, the insurance company's payment = 80% of (total payment)

`=(80)/(100)* 17990`

`=(4)/(5)* 17990`

`=4* 3598`

= $ 14392

b. co payment percentage = 20 % of total payment

`=(20)/(100)* 17990`

`=(1)/(5) * 17990`

= $ 3598

c. Mary's total cost = deduction + co payment

= 250 + 3598

= $3848