Question

a health insurance policy pays 75 percent of physical therapy costs after a $300 deductible. in contrast, an hmo charges $20 per visit for physical therapy. how much would a person save with the hmo if he or she had 10 physical therapy sessions costing $50 each?

Answer 1

The person would save $150 by using the HMO plan instead of the health insurance policy for 10 physical therapy sessions, paying a total of $200 instead of $350.

Step-by-step explanation:

With an HMO plan, a person would save $200 after 10 physical therapy sessions worth $50 each compared to using an insurance plan with a 75% coverage after a $300 deductible.

The health insurance plan requires the individual to pay the first $300 as a deductible. The remaining cost for the 10 sessions is $200 ($500 total - $300 deductible), of which 75% is covered by insurance, leading to an out-of-pocket expense of $50 (25% of $200). Therefore, the total cost with health insurance would be $350 ($300 deductible + $50 co-insurance).

With the HMO, the individual has a co-payment of $20 per visit. For 10 visits, this amounts to $200 ($20 per visit x 10 visits), which is a $150 savings when compared to the health insurance policy.