Final answer:
A person would save $298.50 with the HMO for 10 physical therapy sessions costing $85 each, compared to using an insurance policy that covers 65% of costs after a $340 deductible.
Step-by-step explanation:
The student needs to calculate how much a person would save with the HMO compared to an insurance policy that pays 65% of physical therapy costs after a deductible of $340, for 10 sessions costing $85 each. Let's break down the costs for each option:
With Insurance:
Total cost of 10 sessions: 10 x $85 = $850
Subtract the deductible: $850 - $340 = $510
Insurance pays 65% of the remaining amount: 65% of $510 = $331.50
Person pays 35% of the remaining amount after deductible: 35% of $510 = $178.50
Total amount paid by the person: $340 (deductible) + $178.50 (35%) = $518.50
With HMO:
HMO charges per visit: 10 x $22 = $220
Now, we calculate the savings:
Savings with HMO: $518.50 (insurance) - $220 (HMO) = $298.50
The person would save $298.50 with the HMO compared to the insurance policy if they had 10 physical therapy sessions costing $85 each.