Question

Jane Dilford gets a student rate of $30.00 a month for health insurance. There is a $250 deductible, but no coinsurance payment. She recently received treatment for a covered condition. The bill was $2,550.00. Jane's insurance company provided payment of 80% of the bill less the deductible.

What was the company's payment?
a) $1,800.00
b) $1,900.00
c) $2,000.00
d) $2,100.00

Answer 1

The insurance company's payment for Jane Dilford's medical bill is calculated by subtracting the deductible from the total bill and then finding 80% of the remaining amount. The calculation shows that the payment made by the insurance company is $1,840.00.

Step-by-step explanation:

The student's question is about calculating the insurance company's payment for Jane Dilford's medical treatment after considering the deductible and the percentage covered by the insurance. To figure out the payment, we perform the following steps:

• First, we subtract the deductible from the total bill amount to determine the amount eligible for the insurance payment.
• Next, we calculate 80% of the remaining amount to determine the insurance company's contribution.

Let's calculate:

1. Total bill: $2,550.00
2. Deductible: $250
3. Amount after deductible: $2,550.00 - $250 = $2,300.00
4. Insurance pays 80% of $2,300.00 which is (0.80 * $2,300.00) = $1,840.00

Therefore, the insurance company's payment is $1,840.00, which corresponds to option (b).