Question

Jay Spring pays $350.00 annually for his health insurance. This is 1/3 of the total cost of the premium; his company pays the rest. He pays a $200 deductible and the plan pays 90% of all expenses beyond the deductible. This year Jay paid expenses of $1,800 beyond the deductible.

How much did Jay have to pay excluding his share of the insurance premium?
How much did Jay's company pay for his insurance premium?

Jay paid 10% and the plan paid 90% beyond the deductible. How much did Jay's insurance company pay total?
How much did Jay have to pay total, including his share of the premium?

Answer 1

1. 350/x = 1/3 x = 1,050

1,050 - 350 = 700

2. 1,800-350 = 1,450

3. 1,450 - 200 = 1,250

4. 1,250/x = 10/100

x = 12,500

0.9 * 12,500 = 11,250

Answer 2

$1,800 (10%) = $180
jay pays 10% of the expenses beyond the deductible so you multiply the amount beyond the deductible by 10%.
$1,800 - $180 = $1,620
or
$1,800 (90%) = $1,620
you subtract what jay pays from the total or you multiply the total by 90%

jay pays $180 of the expenses past the deductible (not including his $200 deductible) and his insurance company pays $1,620.