Question

​Mary Cardenas had a policy with a $500 deductible, which paid 80% of her covered charges less deductible. She had medical expenses of $12,500. Calculate:

a. the company's payment
$9,600
$12,000
$500

b. Mary's 20% copayment
$2,400
$500
$9,600

c. Mary's total cost
$2,900
$500
$2,400

Answer 1

a.The company's payment is $9,600

b.Mary's 20% co payment is $2400

c.Mary's total cost is $ 2900

Explanation:

a.

The company's payment is 80% of the total minus the policy with a $500 deductible

=
`(80)/(100)(12,500-500) =(8)/(10)\cdot 12,000`

=$9,600

therefore, the company's payment is $9,600.

b.

Mary's co payment=20% of total expenses minus $500 deductible.

∴ Mary's 20% co payment =
`(20)/(100)(12,500-500)= (2)/(10)\cdot (12,000)`

=$2400

c.

Mary's total cost is $2400+$500=$2900.

Answer 2

Ok so let me help you in here:
After she pays $500 toward her medical expenses for the year, her insurance will pay 80% of the $12,500 cost. So
12,500 x .80 = 10,000. Then 12,500-10,000 = $2,500.
So you pay $2500 and the insurance company pays $10,000.
Hope this is useful