Question

the kelleher family has health insurance coverage that pays 75 percent of out-of-hospital expenses after a $500 deductible per person. if one family member has doctor and prescription medication expenses of $1,420, what amount would the insurance company pay?

Answer 1

The insurance company would pay $690 for the family member's doctor and prescription medication expenses after applying the $500 deductible and covering 75% of the remaining expenses.

Step-by-step explanation:

The Kelleher family has a health insurance policy with a deductible and a certain percentage of cost coverage. First, let's compute what they pay out-of-pocket before insurance kicks in.

With a total medical expense of $1,420 and a $500 deductible, the family will pay the first $500 of incurred expenses, leaving $920 ($1,420 - $500) that is subject to coverage.

Next, the insurance policy covers 75% of the remaining expense after the deductible.

To find this, we take 75% of $920, which is 0.75 * $920 = $690.

Therefore, the amount the insurance company would pay is $690.