Question

A surgery that Jamal needs costs $34,000. If he has the surgery done at a medical facility his insurance company has preapproved (in-network), insurance will pay 80% of the cost. If the procedure is done out of network, insurance will pay half the cost. What is the difference on Jamal's final bill to stay in his insurance provider's network?

Answer 1

10,200 is the correct answer.

Answer 2

The cost of surgery is = $34000

If he has the surgery done at a medical facility his insurance company has pre approved (in-network), insurance will pay 80% of the cost.

So, the insurance company will pay :

`0.80*34000=27200` dollars

Jamal will have to pay
`34000-27200=6800` dollars

If the procedure is done out of network, insurance will pay half the cost.

Means insurance company will pay =
`34000/2=17000` dollars

Jamal will have to pay =
`34000-17000=17000` dollars

So, to stay in network, he will have to pay $6800 and to stay out of network, he will have to pay $17000.