Question

Bill Bernstein's group medical insurance coverage costs $5,480 a year. The company pays 65 percent of the cost. How much is deducted each month from his paycheck for medical insurance?

Answer 1

Bill Bernstein will have $159.83 deducted each month from his paycheck to cover his 35% share of the group medical insurance costs, after his company pays for 65% of the total annual cost.

Step-by-step explanation:

The question requires calculating the monthly health insurance premium payment that is deducted from Bill Bernstein's paycheck. With an annual insurance cost of $5,480 and the company paying 65 percent of this cost, the remaining 35 percent is Bill's responsibility.

To calculate this, we first determine the annual amount Bill has to pay by multiplying $5,480 by 35 percent (0.35). Then we divide the annual personal cost by 12 to find the monthly deduction.

1. Multiply the total annual insurance cost by 35% to find Bill's annual share: $5,480 x 0.35 = $1,918.
2. Divide Bill's annual share by 12 to determine the monthly cost: $1,918 / 12 = $159.83.

Therefore, $159.83 will be deducted from Bill's paycheck each month for his medical insurance.