Question

Paul smith pays $50.00 a month for group health insurance. there is a $300 deductible. his medical bills for the last year were $2,600.00. paul’s insurance company provided payment of 80% of the bills less the deductible. what was paul’s total cost (including the monthly premium)? show all work to get full credit

Answer 1

To calculate Paul's total cost, we add up the monthly premiums and the portion of his medical bills that he paid out of pocket.

Step-by-step explanation:

To calculate Paul's total cost, we need to consider the monthly premium and the amount he paid out of pocket for medical bills (after the deductible). Let's break it down:

1. For 12 months, Paul pays a total of $50 x 12 = $600 in monthly premiums.
2. After the $300 deductible, Paul's out-of-pocket expenses are $2,600 - $300 = $2,300.
3. The insurance company pays 80% of the bills, so Paul's share is 20% of $2,300, which is 0.2 x $2,300 = $460.

Therefore, Paul's total cost, including the monthly premium, is $600 + $460 = $1060.