Final answer:
Chad will pay a remaining deductible of $1770 and 20% co-insurance of $1001, totaling $2771. The insurance company will pay for the 80% after the deductible which equals $4004 plus the $230 already contributed by Chad, resulting in a payment of $4234 by the insurance company.
Step-by-step explanation:
Chad Strong has a group health insurance plan that requires him to first meet a $2000 deductible, after which the insurance pays 80% of the costs, while Chad pays the remaining 20%. He has already paid $230 toward his deductible from previous expenses, so he only needs to pay $1770 more to meet the deductible. After that, the insurance will cover 80% of the remaining costs.
First, we add up all the medical expenses Chad has received:
- Ambulance call: $100
- Laboratory work: $270
- Emergency room charge: $1500
- 2-day hospital stay: $2100
- Surgeon’s fees: $650
- Pharmacy fees: $135
- Surgery suite and Follow up Dr. visits: $150
- Operating room fees: $1200
- Radiologist’s fees: $120
- Physical therapy: $650
The total comes to $6,775. Chad still has $1770 left towards his deductible. After subtracting this amount from the total, $5005 remains. The insurance will pay 80% of this figure, which amounts to $4004, and Chad will pay the remaining 20%, plus the deductible he hasn't met yet:
$5005 x 20% = $1001 (Chad's 20% co-insurance payment)
Add the remaining deductible: $1001 + $1770 = $2771
Therefore, Chad will pay a total of $2771, and the insurance company will pay $4004 plus the original $230 Chad has already contributed toward the deductible, making the insurance company's payment $4234.