Question

You are billing an insurance company for the following medication: 60 tabs with an AWP of $590 for 1,000 tablets with a 6% markdown and a $5 dispensing fee. How much should be billed to the insurance company?

A. $38.28
B. $32.14
C. $41.80
D. $61.30

Answer 1

The total amount to be billed to the insurance company for the medication is $38.28, after applying a 6% markdown to the cost of 60 tablets and adding a $5 dispensing fee.

Step-by-step explanation:

To calculate the amount to be billed to the insurance company for the medication, first determine the cost per tablet by dividing the Average Wholesale Price (AWP) by the number of tablets:

Cost per tablet = AWP / number of tablets = $590 / 1000 = $0.59 per tablet.

Now calculate the cost for 60 tablets:

Cost for 60 tablets = 60 * $0.59 = $35.40.

Apply the 6% markdown:

Markdown amount = $35.40 * 6% = $2.124.

Subtract the markdown from the total:

Total after markdown = $35.40 - $2.124 = $33.276.

Add the dispensing fee:

Total billed amount = Total after markdown + dispensing fee = $33.276 + $5 = $38.276.

Rounded to the nearest cent, the total amount to be billed is $38.28.