Question

How much would be owed by the patient on a $3,000 bill if a PPO uses a discount on charge arrangement wherein the percentage paid to the provider is 70% and the patient's copay, as specified by the PPO, is 20 percent?

A) $600
B) $700
C) $420
D) $200

Answer 1

The patient would owe $600 as their 20% co-pay on the original $3,000 medical bill, with the PPO covering 70% of the bill, which is $2,100. The correct option is A.

Step-by-step explanation:

The question pertains to the calculation of a patient's responsibility for a medical bill under a Preferred Provider Organization (PPO) plan with specified payment percentages. Given a $3,000 medical bill, the PPO pays 70%, which amounts to $2,100 ($3,000 x 0.70).

Subsequently, the patient is responsible for a 20% co-pay. However, the co-pay is calculated on the original bill amount, not on the discounted amount covered by the PPO. Therefore, the patient's co-pay is $600 ($3,000 x 0.20). The patient's total amount owed is the co-pay since the PPO's payment covers the rest of the bill.

Hence, Option A is correct.